This report is read as follows:
The company's layout of light storage, car lightweight, security, heating non-burning smoke track, fully benefit from the downstream high growth, high-speed growth of orders, the annual profit margin is expected to achieve a better rebound.
Main points of investment:
Coverage for the first time, giving a "overweight" rating. The company benefits from the growth in demand for downstream optical storage and new energy vehicles, and its performance will improve rapidly. It is estimated that the EPS in 2022-24 will be 0.87,1.41,2.07 yuan respectively, corresponding to a growth rate of 135%, 63% and 46%. Combined with the valuation methods of PE and FCFF, the market capitalization is 15.89 billion yuan, corresponding to the PE of 45.66 times in 2022, and the target price is 39.75 yuan.
The fierce competition in the structural parts industry tests the comprehensive ability of the company. The structural parts industry comprehensively tests the company's bargaining power on the client side and the cost control ability on the production side. Whether it can achieve a higher profit margin depends on the player's product power, customer quality, management ability, economies of scale and so on. The company has the best customers in the track, strong quality control ability, one-stop supply capacity, and has formed the advantage of economies of scale, and has formed a strong leading advantage in process level, cost, integrity of process chain and so on.
The first-mover layout potential industry, the rapid growth of hand-on-hand orders. The company ahead of the outbreak of the industry ahead of the layout of photovoltaic, new energy vehicles, heating non-burning smoke and other growth tracks, the rapid increase of cooperation projects with customers.
With the continuous release of the company's production capacity in 2021, the ability to take orders has increased significantly. By the end of 2021, the amount of orders on hand is 780 million yuan / + 132.63%, and 2022Q1 has achieved income growth of 51%, profit growth of 83%, and high growth.
2021 profits have been damaged and are expected to rise sharply in 2022. Affected by the rise in the price of raw materials, the appreciation of the RMB, and the underutilization of production capacity, the company's gross profit margin and net profit margin fell to new lows in recent years in 2021. In 2022, with the stabilization of raw material prices, the depreciation of RMB, and the increase in product prices, the company's profit margin is expected to return to a better level. 2022Q1 gross profit margin has rebounded to 20.11%, net profit rate has reached 9.81%, and a higher increase is expected for the whole year.
Risk hint: the demand for photovoltaic and new energy vehicles is not as expected, and the development of energy storage products is not as expected.