Event: in 2020, the company realized operating income of 1.811 billion yuan, an increase of 18.74% over the same period last year, a net profit of 315 million yuan belonging to shareholders of listed companies, an increase of 26.86%, a gross profit margin of 30.24%, a decrease of 1.4% over the same period last year, and a net interest rate of 17.34%, an increase of 1.2% over the same period last year.
Long-distance conveyor belt opens the ceiling of the industry: the customers downstream of the long-distance conveyor belt are mainly building materials enterprises, and the alternative mode of automobile transportation has two major advantages: 1) reduce safety accidents and road damage in the process of transportation; 2) reduce transportation costs by about 50%. The payback period of the project investment is about three years. Therefore, at present, long-distance conveyor belts have accounted for more than 50-60% of the incremental demand for industrial conveyor belts, significantly driving the growth of the industry scale.
The leading trend of the conveyor belt industry is accelerating, and the company's market share is gradually expanding: in the past few years, the conveyor belt industry is facing continuous supply-side reform, which is conducive to the improvement of industry concentration, and customer orders are tilted to the head enterprises. In 2020, the company achieved rapid growth against the epidemic background. last year, it developed 403 domestic customers and 23 foreign customers, and its domestic and foreign income increased by 20.82% and 10.87% respectively, and the market share of its products continued to increase.
Seize the opportunity of the industry and rapidly expand production capacity: in 2020, the company's conveyor belt production capacity reached 65 million square meters, capacity utilization rate of 95.39%. In line with the rise of long-distance conveyor belts and the trend of the overall leadership of the industry, the company plans to continue to increase investment in the main industry of conveyor belts in the next few years, and will accelerate the construction of 25 million tons of conveyor belt capacity in 2021, and plans to break through 150 million square meters of production capacity by the end of the 14th five-year Plan. Further increase market share.
Investment suggestion: we believe that the rise of long-distance conveyor belts will bring high growth to the industry for a long time, while Shuangjian as the domestic global conveyor belt leader, product differentiation and quality are recognized downstream, is expected to achieve high growth. It is estimated that the net profit of shareholders belonging to the listed company in 2021-2023 is 3.4,3.9 and 450 million yuan respectively, corresponding to 11.3,9.7 and 8.4 times PE respectively, maintaining the "buy" rating.
Risk tips: downstream demand growth is not as expected, raw material prices fluctuate sharply, and so on.