Event description:
In the first three quarters of 2020, the company achieved revenue of 509 million yuan, an increase of 0.81% over the same period last year, and a net profit of 73 million yuan, an increase of 12.17% over the same period last year. 2020Q3, the company achieved an operating income of 165 million yuan, an increase of 6.79% over the same period last year, and a net profit of 20 million yuan, an increase of 46.62% over the same period last year.
Financial report comments:
Financial expenses have increased significantly, and R & D expenses have increased significantly. In the first three quarters of 2020, due to a reduction in exchange losses, the company's financial expenses increased by 333.88% year-on-year to 6 million yuan.
The company's R & D expenditure was 15 million yuan, an increase of 45.16% over the same period last year, and the research and development of new projects and new products continued.
The gross profit margin increased slightly and the operating net cash flow increased significantly. Due to the gradual increase in the proportion of the application of high-performance filter materials, in the first three quarters of 2020, the company's gross profit margin and net profit margin respectively increased to 33.19% and 14.45% compared with the same period last year. The final balance of the company's accounts receivable and bills receivable was 160 million yuan, down 45 million yuan from the same period last year. At the same time, the advance collection increased by 265 million yuan over the same period last year. In the first three quarters, the company received a total of 10 million yuan in government subsidies. As a result, the net cash flow of the company's operating activities in the first three quarters increased by 54 million yuan over the same period last year to 115 million yuan, an increase of 88.52% over the same period last year.
The downstream application of functional filtering products is accelerated, and high value-added products are gradually mass-produced.
The company's functional filter products are gradually expanding from the field of traditional air conditioning / lampblack / fan filtration to mobile traffic, big health, big consumption and other fields. The Toyota vehicle air purifier developed by the company has been put into production and put on the market in March. In the post-epidemic era, health has become an important index for consumers to choose and buy household appliances and air filtration products. The company accelerates the layout of the large health field, and the independently developed anti-virus filter element can be applied to air conditioners, air purifiers and fresh air systems. now it has been popularized and used in small batch areas. The expansion of downstream applications will open up new growth space for the company and increase the gross profit margin of filtering products.
Investment rating and valuation: the company is expected to have a net profit of $114,1551 million in 2022, corresponding to PE of 31-23-16, and maintain a "highly recommended" rating.
Risk hints: downstream industry boom fluctuation risk, raw material price fluctuation risk, vehicle purifier market expansion progress is not as expected, epidemic repeated risk.
