Event description
During the reporting period, the company realized revenue of 10.562 billion yuan, down 11.47% from the same period last year; realized net profit of 1.014 billion yuan, down 32.45% from the same period last year; and realized net profit of 818 million yuan, down 35.45% from the same period last year. In the third quarter alone, the revenue was 3.625 billion yuan, down 18.43% from the same period last year, and the net profit was 382 million yuan, down 37.58% from the same period last year. In the third quarter, the gross profit margin was 36.94%, up 1.45% from the previous quarter; and the net profit was 10.92%, up 1.45% from the previous quarter.
Event comment
The growth rate of the company's business scale slowed down in the first three quarters, but maintained a good profit level, reflecting the company's competitive advantage in its core business. During the reporting period, the company continued to increase R & D investment, and the proportion of R & D expenditure in revenue increased to 10.57% from 8.07% in the same period last year; financial expenses decreased significantly, and due to the influence of exchange rate, the profit contribution increased by 229 million over the same period last year; 165 million yuan was under construction, an increase of 152 million yuan over the same period last year, mainly increased expenditure on construction projects such as CORACTIVE Industrial Plant, Yachuang Industrial Park and Zhangjiagang Industrial Park Capital expenditure was 718 million yuan, an increase of 42.18% over the same period last year, and the fundamental growth potential continued to improve in the medium term. In the first three quarters, the company's credit impairment loss and asset impairment loss increased by 167 million yuan compared with the same period last year, including more than 7000 million goodwill impairment, mainly due to the lower-than-expected performance of CORACTIVE, a Canadian special optical fiber subsidiary.
During the reporting period, the company's new energy-related business continued to perform well, lithium equipment revenue increased, maintained a good profit level since the first half of the year, optimized customer structure, and reached deep cooperation with AVIC Xinchuang, Yiwei Lithium Energy, Honeycomb Energy and other customers.
With the launch of bidding in the second half of the year, we expect the lithium equipment business to achieve more than 2.5 billion revenue for the whole year. In terms of welding equipment for new energy vehicles, the company maintains good cooperation with BYD, Great Wall Motor and other leading enterprises in the industry. the newly developed new energy vehicle high-strength steel battery tray automatic laser welding production line and integrated thermoforming door ring automatic production line project have been applied in BMW and General Motors Co new energy models.
The company will promote the flattening reform in 2021, abolish the business department, regard the product line or project center as an independent business assessment unit, strengthen the assessment and incentive mechanism, and greatly stimulate the enthusiasm of various business lines. At the same time, the reform will promote the marketization of professional equipment and optical components in large industries, and become bigger and stronger. Ultrafast lasers take the lead in the world. High-power picosecond lasers and subnanosecond lasers such as 150W infrared picosecond laser, 50W ultraviolet picosecond laser, 30W ultraviolet sub-nanosecond laser, 250W1mJ nanosecond fiber laser and so on have been mass produced.
We believe that the completion of the restructuring of the company's growth business and the straightening out of the incentive mechanism will burst out unlimited power for a long time. We estimate that the company's performance in 2022-2024 is expected to be 1.439 billion yuan, 1.671 billion yuan and 2.069 billion yuan, corresponding to 18.40,15.86,12.80 times of PE in 2022-2024, respectively.
Risk hint
1. The bidding for lithium battery equipment in the second half of the year is not as expected.
2. The impact of macroeconomic prosperity on the short-term demand for high-power equipment upgrading.