Event: according to the company's 2021 annual report, the company's operating income reached 3.78 billion yuan, an increase of 26.47% over the same period last year; the net profit belonging to shareholders of listed companies was 1.1yuan, up 36.59% from the same period last year.
Comments:
Steel ring business: steady progress, overseas revenue against the trend growth. In 2021, the company achieved wheel income of 1.5 billion yuan, an increase of 21% over the same period last year, of which overseas sales revenue was 1.1 billion yuan, an increase of 48% over the same period last year. Due to the decline in overall domestic commercial vehicle production and sales demand in the fourth quarter, the suspension of epidemic control in Xiamen, Vietnam and other places, and the shortage of shipping at the end of the year, the company's profitability in the fourth quarter was lower than expected.
Steel structure business: deep ploughing sub-areas, the overall gross profit margin is stable. The company's steel structure business achieved revenue of 1.84 billion yuan, an increase of 27% over the same period last year. The company continues or newly undertakes many major projects to create a differentiated brand. Although the price of raw materials fluctuates violently, the company through project price locking, contract adjustment mechanism, inventory control and other comprehensive means, although steel fluctuations have a certain impact on the company's operation, but the overall product gross profit margin is relatively stable.
Forging aluminum wheel project: non-public offering completed, prudent and orderly progress. In 2021, the company completed the non-public offering project of lightweight forged aluminum alloy intelligent manufacturing project, raising a total of 329 million yuan. Taking into account the continuous impact of the epidemic at home and abroad on the procurement, installation and commissioning of imported equipment required by the project, and the fact that foreign customers are unable to inspect the factory, and the development of export orders is limited, the company readjusted the investment schedule and is promoting the construction of the project in a prudent and orderly manner.
Lean management, reduce cost and increase efficiency, and the control of "three fees" is very effective. By continuously improving internal control, reducing costs and increasing efficiency, the three expenses accounted for 6% of revenue, down nearly 1 percentage point from the previous year, and the proportion of depreciation in operating costs was optimized to 3%, showing management benefits. In the second half of 2021, the company gave full play to the synergy of the supply chain and invested in a new wheel production base in Caofeidian Iron and Steel Park of Shougang. On the one hand, the project straightens the logistics and cost line and solves the processing of raw materials at home and abroad. On the other hand, it can meet the supply demand of mainframe plants in Northeast and North China. The commissioning of the Caofeidian plant will further reduce production and logistics costs.
Profit forecast and investment rating: we expect the company's revenue from 2022 to 2024 to be 45x51 / 5.7 billion yuan, an increase of 19%, 13% and 12% respectively over the same period last year. Based on the company's 2021 results, we adjusted the company's 2022-2023 return net profit from 222,280 million yuan to 130.60 million yuan, that is, the company's 2022-2024 return net profit was 1.3 billion pound 160 million, an increase of 23%, 26% and 21%, respectively, and the corresponding PE was 19can1512x. Considering that the company's forging aluminum wheel project is expected to gradually expand, the valuation is still at a low level, so the company's "buy" rating is maintained.
Risk tips: price fluctuations of major raw materials; impact of international market on export business, exchange rate fluctuations.