Zhen'an Science and Technology issued a third-quarter results announcement: operating income / deducting non-parent net profit in the first three quarters of 2022 was 653 million yuan, compared with the same period last year. Q3 achieved operating income / deducted non-return net profit of 2.22 million yuan in Q3 in 2022, compared with 9.72% and 105.09% in the same period last year.
Main points of investment
During this period, the cost has improved, and the number of orders on hand has gradually increased.
In the Q3 single quarter of 2022, the company achieved a gross profit margin of 42.88%, year-on-year-0.02pct, month-on-month-5.23pct, under short-term pressure, but with the decline in the price of the company's main raw materials, the gross profit margin is expected to be repaired. The expense situation has improved during the period of the company. The expense rate during Q3 in 2022 is 23.13%, year-on-year-5.68pct, month-on-month-3.91pct. Among them, sales expenses account for 10.82%, year-on-year-5.07pct, month-on-3.28pct; management expenses account for 6.76%, year-on-year-3.00pct, month-on-month ratio-0.94 pct; the company continues to increase R & D investment, accounting for 3.24%, year-on-year-0.15pct, month-on-month ratio + 0.58 pct; financial expenses account for 2.31%, year-on-year 2.53pct, month-on-month-0.27pct.
In addition, by 2022 Q3, the company's contract liabilities reached 39 million, an increase of 16.8% compared with 33 million of H1 in 2022, mainly due to the increase in the amount of projects received in advance and the gradual increase in the number of orders on hand. As of 2022Q3, the company's other receivables were 13 million, an increase of 13.03% compared with 11 million of H1 in 2022, mainly due to the increase in the company's project bidding margin and the increase in the number of potential orders. With the improvement of the company's competitiveness, the number of company orders is expected to further increase.
Increase fund-raising to increase production capacity and expand R & D and marketing capabilities
The company issued 4.57 million additional shares in September 2022 to raise 250 million yuan to expand production capacity, enhance R & D capacity, improve sales network and optimize capital structure. On the production side, the main body of the fund-raising project is Changzhou Green, a subsidiary of the company, and the company plans to implement the fund-raising project by timely increasing capital to Changzhou Green. After the completion of the project, it can not only enhance the production capacity of existing products, but also improve production efficiency, enrich product types and enhance the competitiveness of products in the field of nuclear power. In addition, the project base is located in Jiangsu, which can improve the layout of the company's industrial base construction, effectively give full play to the advantages of Jiangsu, solve the problem of the company's transportation radius, and help the company to expand the market outside Yunnan Province and enhance its market competitiveness in the Yangtze River Delta region. At the R & D end, the company plans to invest 72 million yuan (including raising 70 million yuan) to build an R & D center, so as to enhance the company's innovation ability, help the company open up technology sources, expand product application fields, and lay a solid foundation for the increase of revenue and profits. At the end of the marketing channel, the company plans to use the raised funds for the construction of the network information system and the layout of the national sales network, and to set up sales management centers in North China, East China and Northwest China respectively. and set up 9 offices in Sichuan, Guangdong, Anhui, Shandong, Xinjiang and other places, the company actively expand marketing channels and strengthen the construction of network layout, which will help to seize policy opportunities and open up the national market. Improve the ability of sales service.
Cooperate and invest in participating companies to speed up the development of the whole industry chain
On September 20, 2022, the company announced that it intends to invest 24.5 million yuan (49%) with China Construction Northwest Design and Research Institute Co., Ltd. (51%) to establish Zhongjian Zhenan Science and Technology Engineering Co., Ltd. The Northwest Institute of China Construction has the first-class certificate of engineering design of the Ministry of Construction, mainly including architecture, building materials, municipal public utilities, landscape architecture engineering design. Through this overseas investment, we can make full use of the technology, brand and resource advantages of both partners, expand the company's business field and industrial layout, realize the development of the whole industrial chain of shock absorption and isolation industry, improve the company's core competitiveness and broaden development channels, and promote the realization of the company's strategic planning.
Equity incentive program is introduced, employee motivation is expected to significantly improve on September 30, 2022, the company announced that it intends to implement an equity incentive plan to grant a total of 1.68 million restricted shares to 101 people, accounting for about 0.68% of the company's total share capital. The equity incentive is divided into three phases. Taking the company's non-return net profit deducted in 2021 as the performance base, the growth target from 2022 to 2024 should reach 30%, 95% and 192.5%. The trigger value needs to be 24%, 76%, 154%, respectively. Through the implementation of equity incentive, it can effectively improve the motivation of employees, and combine the company's performance with employees' own goals, which is conducive to the long-term development of the company.
Profit forecast
From 2022 to 2024, the income of the forecast company is 15.24,28.78,4.131 billion yuan respectively, and the EPS is 1.01,2.08,3.36 yuan respectively. The current stock price corresponding to PE is 43.9,21.3,13.2 times respectively.
Risk hint
1) the scale of the shock isolation market is lower than expected; 2) the progress of the project construction is not as expected; 3) the gross profit margin of the main industry is declining.