Event
Shuangyi Technology released the 2020 China report, with operating income of 541 million yuan from January to June 2020, an increase of 51.79% over the same period last year, and the net profit of shareholders belonging to the parent company was 126 million yuan, an increase of 79.53% over the same period last year. Of this total, Q2 achieved operating income of 352 million yuan in the quarter, an increase of 71.51% over the same period last year, and the net profit of shareholders belonging to the parent company was 79.59 million yuan, an increase of 126.22% over the same period last year.
Company comment
Domestic wind power cabin cover leader, the main business is growing rapidly
The company is a domestic leading enterprise of wind turbine cabin cover products, including wind turbine cabin cover, large non-metallic mold, engineering vehicle hood, fishing boat, passenger car cover, etc., covering the field of wind power, engineering agricultural machinery, yacht ships, rail traffic and other fields. The company has established long-term and stable cooperative relations with a number of high-quality customers at home and abroad, such as Siemens Gomeisa, Vestas, Xinjiang Goldwind Science & Technology in the field of wind power, Sany heavy Industry and Caterpillar Inc in the field of construction machinery, CRRC Corporation in the field of rail transportation, Zhuzhou era of CSR and so on. The company's performance increased greatly in the first half of 2020. Revenue in the fields of wind power, moulds and vehicle panels increased by 37.27%, 75.83% and 40.15% respectively, and gross profit margins were 43.93%, 47.49% and 33.19% respectively. The prices of main raw materials such as resin, steel and glass fiber decreased year on year, and the gross profit margin increased compared with the same period last year.
Fund-raising projects have been put into production one after another, and the performance growth has high certainty.
The company Yancheng engine room cover and large-scale non-metallic mold industrialization project has been put into production, which has led to the rapid growth of the company's performance since 19 years. The blade mold products have successfully entered the overseas market, and the output of mold products in 19 years has increased by 76.60% compared with the same period last year. In terms of increment, the construction of No. 1 and No. 2 plants of Yancheng subsidiary has been completed, workshops No. 5 and No. 6 of Wucheng Branch have been put into use, and Workshop No. 7 is expected to be completed in the second half of the year. As the fund-raising projects have been put into production, the wind power industry continues to improve, and the company's performance growth will be guaranteed.
Profit forecast and valuation
Based on the continued prosperity of the wind power industry and the successive commissioning of the company's fund-raising projects, we expect the company to achieve operating income of 11.73,14.34 and 1.69 billion yuan in 2020, 2021 and 2022, an increase of 41.73%, 22.25% and 17.85% over the same period last year. The net profits of shareholders belonging to the parent company were 2.64,3.20 and 378 million yuan, up 73.27%, 21.12% and 18.43% respectively. The EPS per share is 2.38,2.88 and 3.41 yuan. The corresponding PE is 16.2,13.4 and 11.3 times. For the first time, it will be given a "cautiously overweight" rating over the next six months.
Risk hint
The policy of wind power industry is not as expected; the new production line is not as expected; the price of raw materials fluctuates; systemic risk.