Main points of investment
In 2020, the company's performance increased significantly compared with the same period last year, with ample cash flow and a special dividend. For the whole year, the company achieved revenue of 11.8 billion yuan, an increase of 20.3% over the same period last year, a gross profit of 4.04 billion yuan, an increase of 30.4% over the same period last year, and a net profit of 2.39 billion yuan, an increase of 36.4% over the same period last year. The company's annual gross profit margin was 34.2%, an increase of 2.6pcpts over the same period last year, mainly due to comprehensive factors such as improved operating efficiency, economies of scale and relatively stable raw material prices. The company's basic earnings per share was 1.5 yuan, an increase of 0.4 yuan over 2019. In addition, due to record operating profits and abundant cash flow, the company declared a special interim dividend of HK $0.75 per share and a total dividend of HK $1.64 per share for the whole year.
The demand for small and medium-sized computers is strong, and the sales volume of Mars series products is high. In 2020, the company sold a total of 43150 injection molding machines, an increase of 32.3% over the same period last year. With the strong demand in the medical and packaging industries in the first half of the year and the general recovery in various industries in the second half of the year, the company's main products Mars series are in strong demand, with sales reaching 37693 units, an increase of 34.9% over the same period last year. Sales of the Mars series were 8.21 billion yuan, an increase of 28.6% over the same period last year. Due to the sustained recovery of the domestic and overseas home appliance industry and increased demand from the automobile industry in the second half of the year, sales of the Changfei sub-electric series and the Jupiter second board series increased by 6.8% to 1.44 billion yuan and 3.2% to 1.3 billion yuan respectively compared with the same period last year.
The third generation machine has been recognized by the domestic market, and the production capacity expansion has been promoted steadily. 2020 is the comprehensive promotion period of Haitian third-generation technology, the company's third-generation phones are widely recognized in the market, and the current sales account for about 50%. In addition, the company's capacity expansion is advancing steadily, and the new plant in Wuxi is expected to complete the first phase of construction in April and May and fully completed in June and July, with a total production area of 85000 square meters, mainly producing mainframes. Shunde intelligent base is expected to be put into production in the second half of 2022, with a total production area of more than 300,000 square meters, mainly engaged in the R & D and production of high-end intelligent injection molding machines, the products tend to be minicomputers, and the future positioning is to serve as the company's headquarters in South China. The first phase of the new plant in Mexico is nearing completion and is expected to be completed in August 2021 with a construction area of 35,000 square meters.
We believe that the commissioning of several major new factories will greatly increase the company's production capacity to meet the current continuous recovery needs of the industry at home and abroad.
Our point of view: Haitian International is the leader of the domestic injection molding machine industry, with perfect layout at home and abroad and outstanding profitability. We believe that in the domestic market, with the stimulus policy driving the recovery of industry demand, the launch of third-generation machines to enhance product competitiveness, and the continuous promotion of the company's production automation transformation and management innovation strategy, there is room for improvement on both the revenue side and the profit side of the company. In addition, the company's export revenue is expected to increase with the expansion of overseas production capacity.
Risk hint: the recovery of industry demand is not as expected; overseas capacity expansion is not as expected; and the current events continue.