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According to the company's 2021 annual report, the company achieved 534 million yuan in revenue (+ 25.5% year on year) and a net profit of 86 million yuan (+ 27.4%) in 2021. The company plans to pay a cash dividend of 1.80 yuan (including tax) for every 10 shares, and at the same time use the capital reserve fund to increase 2 shares for every 10 shares and 2 shares for every 10 shares.
Peace viewpoint:
Revenue growth in 2021 is beginning to show, with orders on hand nearly doubling. 1) revenue side: in 2021, the company achieved operating income of 534 million yuan, an increase of 25.5% over the same period last year. The company's products include heat exchanger equipment, precision presses and microchannel equipment, with an income of 2.42 billion yuan. 2) Gross profit margin: in 2021, the company's comprehensive gross profit margin was 37.6%, slightly lower than the same period last year, mainly due to the change in income structure, and the proportion of precision presses with lower gross profit margin increased. 3) the cost side:
In 2021, the company's four fees for sales, management, R & D and finance totaled 18.13%, reducing 1.60pct compared with the same period last year, mainly due to the dilution of management and R & D expenses. 4) net interest rate: in 2021, the company's return net profit margin reached 16.07%, an increase in 0.23pct compared with the same period last year. 5) orders: at the end of 2021, the company's contract liabilities reached 304 million yuan, an increase of 92.41% over the same period last year, indicating a substantial increase in the company's on-hand orders.
Rooted in the high-growth track of new energy vehicles, the company's precision press has outstanding performance. In 2021, the company's precision press achieved revenue of 203 million yuan (year-on-year + 88.4%) and gross profit margin of 30.2%, a substantial increase in 12.7pct over the previous year. The company's precision press products have made excellent progress in the two major tracks of motor core stamping equipment and power battery structure stamping equipment for new energy vehicles.
1) in terms of motor core equipment, the company's MCP series products have been sold in bulk as the first set of key equipment in China, with sales increasing by 260% over 2020, and are expected to continue to be the company's leading products for motor iron core presses, leading the domestic replacement of new energy motor iron core equipment.
2) in terms of battery structure equipment, the company's battery cover press is popular with manufacturers, with sales increasing by 100% compared with 2020; cam drive tension presses for battery cylindrical shell stretching form a series and achieve sales. The company is the first to launch a servo press for the forming of 4680 battery shell in China, which has successfully passed customer acceptance and is expected to quickly seize the 4680 battery track and overtake in the corner.
The demand for heat exchangers and microchannel equipment is steady and good profitability is maintained. In 2021, the company's revenue from heat exchanger equipment was 242 million yuan (+ 6.3% compared with the same period last year), with a gross profit margin of 38.0%; and that of microchannel equipment was 72 million yuan (- 5.0% compared with the same period last year) and gross profit margin was 53.7%. As the company's cash cow business, the company's heat exchanger equipment and microchannel equipment to maintain a leading competitive position, in product research and development, customer development have made some progress, is expected to maintain excellent profitability.
Equity incentives enhance talent stickiness and demonstrate confidence in development. In March 2022, the company issued a draft of the 2022 restricted stock incentive plan, which intends to grant 6.1525 million restricted shares at a price of 5.32 yuan per share to 86 incentive targets. The performance evaluation requirements of this incentive plan at the company level are: the growth rate of net profit in 2022-2024 compared with 2021 is not less than 10%, 20%, 30%, or the growth rate of operating income is not less than 15%, 30%, 45%. The equity incentive plan is expected to mobilize the enthusiasm of the incentive object and further improve the comprehensive competitiveness of the company.
Investment suggestion: fine-tuning the company's profit forecast, it is estimated that the company's return net profit from 2022 to 2024 is 121 million yuan, 178 million yuan and 270 million yuan (before 2022-2023 is 132 million yuan and 205 million yuan respectively), and the corresponding price-to-earnings ratio is 18 times, 12 times and 8 times respectively. The company as a special punch for a number of track subdivision leader, the performance of new energy equipment ushered in the outbreak, to maintain the "recommended" rating.
Risk tips: (1) Lithium battery structure manufacturers' production expansion is not as high as expected. In recent years, investment in the global lithium battery industry is hot. If the downstream market capacity expansion is not as expected, the company's lithium structure equipment business income may be affected. (2) the risk of a decline in gross profit margin. Factors such as the fluctuation of raw material prices, the increase in human resources costs and the increase in depreciation caused by project construction and production may lead to a further increase in product costs and affect the company's gross profit margin. (3) the risk of inventory price decline. Due to the long production cycle of products, there may be the risk of falling prices of raw materials and finished goods in stock. In addition, the falling exchange rate will also lead to the risk of falling prices of inventory.