Main points of investment
Home appliances micro-special motor leader, active layout of high-growth track. The company has been ploughing the field of micro-special motors for nearly 30 years. On the basis of the business of micro-special motors of traditional household appliances, through endogenous-M & A, the company continues to cut into the high-prosperity tracks such as medical treatment, new energy, industrial control and so on, and expands its business diversified. Under the background that household appliances are saturated, the company's revenue increased from 2.023 billion yuan in 2017 to 2.919 billion yuan in 2021, with a CAGR of 9.60%. The net profit of home ownership increased from 218 million yuan in 2017 to 244 million yuan in 2021, with a CAGR of 2.86%.
The domestic micro-special motor is large but not strong, and the company has significant technical advantages to strive for domestic replacement. As the largest micro-motor modular solution provider in China, the company has an internationally competitive R & D base and advanced automation production line, and has established a leading position in the field of micro-special motors. the company's products have been widely used in household appliances and other fields. Under the background of the slow growth of the household appliance market, the company strengthens its research and development, relies on the advantages of technology accumulation, carries out technological innovation and upgrading of major products, and opens up new business areas according to market demand, targeting foreign manufacturers to achieve import substitution. With the landing and release of new products, it is expected that the company's home appliance business will usher in rapid growth.
"Medical treatment + new energy vehicles + energy storage + industrial control + robots", the five high-prosperity racing tracks go hand in hand. The company's endogenous mergers and acquisitions continue to enter the field of high prosperity and dynamically withdraw from the Red Sea market, which is expected to get rid of the slow performance growth in recent years and create the second or even the Nth growth curve. In the future, with the continuous optimization of the company's product structure, the company is expected to break through the bottleneck of development, revenue will usher in high growth.
Investment suggestion and valuation: as the leader of domestic micro and special motors, the company actively distributes medical treatment, new energy vehicles, energy storage, industrial control, robots and other fields, dynamically withdraws from the Red Sea market, and is expected to usher in valuation reshaping. Without considering the company's potential business expansion, we estimate that the company's operating income from 2022 to 2024 will be 3.197 billion yuan, 3.846 billion yuan and 4.684 billion yuan respectively, and the revenue growth rate will be 9.5%, 20.3% and 21.8% respectively. The net profit was 307 million yuan, 432 million yuan and 608 million yuan respectively, and the net profit growth rate was 25.7%, 40.6% and 40.9%, respectively. Give "overweight" investment rating.
Risk tips: domestic substitution is not as expected; sales of household appliances are declining; the risk of rising prices of raw materials.