Event: Changgao Group issued a 2021 annual report, the company achieved revenue of 1.521 billion yuan in 2021,-2.59% year-on-year, return to the mother net profit of 251 million yuan, year-on-year + 17.85%, deducted non-return net profit of 188 million yuan,-5.4%. The performance is basically in line with expectations.
Comments: the qualification of power engineering design forms the pulling effect, and the ability of integration is enhanced. During the reporting period, the power transmission and transformation equipment sector realized 21987 groups / units / interval sales, with revenue of 1.315 billion yuan, year-on-year + 0.34%, gross profit margin of 35.4%, an increase in 0.64pct compared with the same period last year. The income of electric power design and construction is 167 million yuan, which is + 33.32% compared with the same period last year. Changgaohua Power Grid has undertaken the comprehensive renovation project of 35kV Lanrong Substation and 12 35kV rural power grid projects of Shaoyang and Zhangjiajie. The total revenue of electric power engineering construction business is 92 million yuan, which is + 97.67% compared with the same period last year. The overall gross profit of the total contract of electric energy design and service is 18.95%, which increases 0.3pct compared with the same period last year.
Channel sinking and sales system reform have achieved initial results, and breakthroughs have been made in the development of the southern network. The company distributed the power distribution network, sank the sales channel, and promoted the sales pilot reform in nine provinces and regions, including Hunan, Hubei, Shandong, and Jiangsu. Changgao Senyuan Electric Power equipment, a subsidiary in charge of distribution network business, realized operating income of 174 million yuan, + 16% year-on-year, and net profit of 17.4565 million yuan, + 55.36% year-on-year. During the reporting period, the company actively developed the southern power grid market, realized the return of the isolation switch in the southern power grid market, and completed the qualification audit of combined appliances and switchgear in the southern power grid. South China achieved sales revenue of 39.162 million yuan, + 0.45% compared with the same period last year.
GIS product line R & D and upgrading, waiting for new products to be launched within 22 years. Changgao Electric, a subsidiary of the company's GIS business, realized operating income of 646 million yuan, + 6% year-on-year, and net profit of 77.3723 million yuan, + 37.98% year-on-year. During the reporting period, product orders increased and cost control was excellent. The company's 126kv GIS cost-reduced structure products are under investigation and design, 126-252kv GIS mixed gas products have completed R & D design and prototype production, 252kv GIS double-fracture isolation switch is expected to complete the relevant type test before August, 550kv GIS is expected to generate sales revenue this year. With the landing of new products, the company's bid-winning rate and order share in Guonan are expected to increase.
Investment suggestion: the profit of the company's GIS business is expected to improve with the arrival of new products, sinking channel power distribution network and distributed generation business. It is estimated that the operating income in 22-24 will be 27.97max 50.34 / 5.232 billion yuan, the net profit of homing mother is 6.38pm 647 million yuan, the EPS is 0.65103pm 1.04yuan respectively, and the corresponding PE is 8.55UK 5.38pm 5.30 times, maintaining the "buy" rating.
Risk hint: GIS new product bid is not as expected; distributed generation business is not as expected