Events:
On April 28, 2022, the company released its quarterly report for 2022: 2022Q1, the company realized revenue of 481 million yuan, year-on-year + 27.62%, month-on-month-17.45%; realized return net profit of 32.4815 million yuan, year-on-year-43.83%, month-on-month + 247.24%; realized non-return net profit of 30.1582 million yuan,-40.59%, an increase of 30.2395 million yuan The net cash flow of business activities was 77.2128 million yuan, + 25.11% compared with the same period last year, and + 5.65% compared with the previous year.
Main points of investment:
In the first quarter, the revenue decreased compared with the previous quarter, while the net profit returned to the mother increased.
2022Q1, the company achieved revenue of 481 million yuan, year-on-year + 27.62%, month-on-month ratio-17.45%; realized mother-to-mother net profit of 32.4815 million yuan, year-on-year-43.83%, month-on-month ratio + 247.24%; revenue month-on-month decline was due to the epidemic and Spring Festival affecting the demand of downstream enterprises. The increase in net profit from home is mainly due to the decline in sea freight and the increase in product gross profit margin.
The gross profit margin of sales was 17.04%, down 9.05% from the same period last year, with an increase of 4.94% from the previous year; and the net sales margin was 6.72%, down 8.59% from the same period last year, and 5.13% higher than the previous year.
The sales expense rate was 2.75%, 0.83% lower than the same period last year and 2.15% lower than the previous year; the management expense rate was 4.07%, 0.85% lower than the same period last year, and 2.12% higher than the previous year; and the R & D expense rate was 2.36%, 0.85% lower than the same period last year and 0.63% lower than the previous month The financial expense rate was 0.20%, an increase of 0.50% over the same period last year, and a decrease of 1.73% from the previous year. The increase in the financial expense rate over the same period was due to the increase in interest on convertible bonds in the current period.
Sea freight rates fall, releasing some profit space
According to Bloomberg, as of April 29, 2022, the FBX index from China to the US West was 15551.80 US dollars / FEU, down 13.46 per cent from early October 2021; the FBX index from China to Europe was 11637.70 US dollars / FEU, down 20.85 per cent from early October 2021; and the FBX index from China to the East was 17149.70 US dollars / FEU, down 17.65 per cent from early October 2021. The high sea freight rate has increased the export product price advantage of domestic conveyor belt enterprises and released some profit space.
Actively promote the application of new scenarios
On the basis of consolidating the existing market share, the company actively explores new sales channels and markets, and continues to increase its market share. To seize the track in the incremental market, the company vigorously promotes the long-distance conveyor belt project and provides the overall solution of the intelligent material conveying system to solve the omni-directional needs of customers from products to services.
Capacity continues to expand, market share is expected to increase
At present, the company has built a conveyor belt production capacity of 75 million square meters per year, with a market share of about 13%. The company's strategy is to double the production capacity and market share during the 14th five-year Plan period, that is, the production capacity will reach 150 million square meters per year. At present, Tongxiang Desheng high-strength steel wire core conveyor belt with an annual output of 1500 square meters has entered the final stage of commissioning and trial production, and the rooftop has an annual output of 60 million square meters. The fabric core conveyor belt is about to complete the planning and design and enter the construction period. The launch of new production capacity is expected to help the company to increase market share and expand economies of scale.
Profit forecast and investment rating estimate that the company's 2022-2024 net profit will be 2.13,3.64 and 477 million yuan respectively, and PE will be 11,7 and 5 respectively, giving it a "buy" rating.
The risk indicates the risk of raw material price fluctuation; product demand is lower than expected; the progress of project construction is not as expected; cost pressure transmission lags behind; sea freight prices are high.
