Event: the company released its semi-annual report that its revenue in the first half of the year was 541 million yuan, an increase of 51.79% over the same period last year, and its net profit was 126 million yuan, an increase of 79.53% over the same period last year.
Comments:
With the decline in the price of raw materials and the release of production capacity, the volume and price of the company's wind turbine cabin cover products have risen: the company is an enterprise integrating composite material product research and development, design, production, sales and service.
At present, the main product is the wind turbine cabin cover. The core reasons for the big increase in performance in the first half of the year are as follows: 1) the wind power industry is booming and new production capacity is superimposed. The company's sales of wind power accessories and non-metallic moulds have increased significantly (the related business income reached 314 million yuan respectively, an increase of 37.27 million yuan over the same period last year). 2) the cost dividend brought by the decline in the price of related raw materials such as resin and glass fiber (the gross profit margin of sales of wind power accessories and non-metallic moulds increased by 5.29 pct, respectively, reaching 47.49%). Overall, the company's performance recovered after the epidemic, with revenue of 352 million yuan in the second quarter, the best level in a single quarter since listing, and net profit of 79.59 million yuan, 126.22% of the same period last year, which is also the highest level in a single quarter since listing.
The performance in the second half of the year is expected to continue to break out, and the medium-and long-term market after rush installation is not pessimistic: as the purchase of the wind turbine cabin cover is generally completed in the later stage of installation, the sales growth of the existing cabin cover has not fully reflected the performance elasticity brought about by rush installation. the new production capacity in the second half of the year is expected to meet the new demand. In the long run, China has entered the 21st year of the development of the wind power industry, and there is a certain replacement demand for early low-power wind turbines, which will effectively fill the incremental market of the engine room cover after rush installation in the future. In the medium and long term, the company binds Vestas, Siemens Gomeisa and other major customers, and is expected to benefit from the improvement of downstream concentration for a long time and achieve long-term and steady development.
Profit Forecast: we estimate that the company's net profit from 2020 to 2022 will be 275,000,319 million yuan, corresponding to EPS 2.48, 2.69, 2.88 and PE, 14.43, 13.32, 12.43, respectively. Considering the clear development path and good growth of the company, the company will be given 20 times PE in 2020, taking into account the clear development path and good growth. The corresponding target price is 49.60 yuan.
Risk tips: rising raw material prices, less than expected customer expansion, short-term market risk, performance forecast and valuation judgment less than expected risk.