General situation of Machinery in East Asia
Focus on compressors for 30 years and master core technology: East Asia Machinery was founded in 1991. East Asia Machinery focuses on the independent R & D, design and production of compressor mainframe, covering the whole air compressor and supporting equipment and other fields. at the same time, it is also a large-scale professional production enterprise of volumetric air compressor and one of the few domestic enterprises that master the core technology of screw air compressor. The company's brand "Jaguar JAGUAR" air compressor occupies a leading position in the field of permanent magnet screw machine.
Analysis of Air Compressor Industry
Large capacity of the industry, large space for high-end domestic alternatives: according to the data disclosed by the Compressor Network, the domestic air compressor market in recent years is 53.6 billion (2018). Including screw compressors, centrifugal compressors, piston compressors and other products. According to rough estimates, the domestic market for screw compressors is about 32 billion, of which the high-end market is occupied by overseas giants such as Atlas Copco, Ingersoll Rand, Shouli and so on. Domestic head manufacturers have been gradually established, but the volume still has a lot of room for growth. It is expected that the domestic head will gradually enter the stage of challenging overseas giants in the field of high-end applications, while the tail will be cleared gradually with the increase of energy consumption requirements.
Competitive advantage and growth driving Force
Energy efficiency performance leads the market and R & D drives the launch of new products: East Asia Machinery ranked first in the "Energy efficiency Star" of the Ministry of Industry and Information Technology for four consecutive years from 2018 to 2021. Being on the list continuously shows that the company not only has an excellent energy consumption level, but also shows high product stability. In addition, the company has established a sound dealer system, which helps to follow up the maintenance needs of end customers in time and enhance customer stickiness. Through independent research and development / cooperative development, the company gradually introduces vacuum pumps / oil-free screw machines / centrifugal compressors to the market, forming the delivery capacity of a complete set of air compression programs.
Investment suggestion
With the gradual pick-up of demand for screw air compressors and the promotion of sales of high-end new products, the company's gross profit margin will remain stable and operating revenue will continue to grow. It is estimated that the company's revenue from 2022 to 2024 will be 8.40 shock 9.82 / 1.148 billion yuan, respectively, compared with the same period last year. The year-on-year revenue will be-6.00%, 16.96%, 16.90%, and the net profit will be 1.75, 2.05 / 244 million, respectively. The year-on-year-3.40%, 17.66%, 18.50, and Besse EPS will be 0.46, 0.54, 0.64, respectively, and the current stock price will be given a "Buy" rating, which corresponds to PE of 21-18-15.
Risk tips: macroeconomic recovery is not as expected, new product development is not as expected, industry competition intensifies risk, raw material cost rising risk.