The 20-year net profit of homing is about 148 million yuan, up 0.2% from the same period last year.
According to the company's annual report for 20 years, the revenue was 604 million yuan, an increase of 0.3% over the same period last year, and the net profit of returning mother was 148 million yuan, an increase of 0.2% over the same period last year, which was lower than our previous forecast of 4.89%. The company's magnetic products are mainly involved in military industry, automotive and industrial automation and other fields, production and demand is relatively stable, so revenue and net profit are basically flat. We estimate that the company's EPS in 21-23 will be 0.47, 0.50, 0.53 yuan respectively, maintaining the "overweight" rating.
The company has taken various measures to stabilize the negative impact of the epidemic and maintain stable profitability during the reporting period, due to the impact of the global COVID-19 epidemic, the company's sales revenue of automotive magnets decreased compared with the same period last year, but the sales revenue of other high-efficiency and energy-saving motor magnets and hot-pressed magnets increased year-on-year, helping the company's overall revenue to increase slightly. In the past 20 years, the company's sales of rare earth permanent magnets were 2175 tons, an increase of 7.14% over the same period last year; of which, revenue from hot-pressed magnets was about 19.915 million yuan, up 12.06% from the same period last year; and revenue from bonded NdFeB was about 569 million, basically flat.
According to Wind,20, the supply of dysprosium oxide, an important rare earth raw material, was reduced due to the epidemic, and the price increased by 34.6%. However, by strengthening cost control and optimizing product structure, the company helped the gross profit margin of rare earth permanent magnets reach 34.47% in 20 years, increasing the profitability of 0.06 pct, to maintain stability.
The company continues to increase its research and development to speed up the research and development of new products.
According to the 20-year annual report, the company has 117 R & D personnel, an increase of 8 over 19 years, accounting for 11.76% of the total employees. During the period, R & D investment was about 25.78 million yuan, accounting for 4.27% of revenue, an increase of 0.7 pct over the same period last year.
The company vigorously promotes and speeds up the research and development of new products, especially the research and development of injection magnets, high-efficiency and energy-saving motor magnets, and difficult micro magnets, some of which have been successfully developed and put into mass production; at the same time, the company has carried out automatic transformation of some injection molding equipment to improve the efficiency of magnet injection molding.
The company has formed a stable and high-quality customer base, and plans to expand the production of samarium cobalt magnet and injection magnet company has formed a stable and high-quality customer base, such as Nidec (6594 TSE), Sony (6758 TSE), Panasonic (6752 TSE), Bosch and other international well-known brands and Raleigh, Ailongwei, Ming Zhi, Dayang, Wanzhida, Weizhen and other domestic well-known enterprises. According to the 20 annual report, Chengdu Silver Magnetic Materials Co., Ltd. has invested 120 million yuan, the main construction of the first phase of the plant has been completed, and the company expects to be put into use in April 21; at that time, the business of samarium cobalt magnets and injection magnets will be expanded in the silver magnetic material base.
The company operates steadily and maintains its "overweight" rating.
In view of the uncertain impact of the epidemic on the economy, we have lowered our production and gross profit margin estimates. The estimated revenue for 21-23 is RMB 9.26 and 9.53 million, and the net profit of the parent is 1.53 million and 1.61 million, respectively. (compared to the previous value,-7.3% and 9.3%), the net profit is 1.53 million and 1.61 million, respectively. The 21-year comparable company (mainly sintered NdFeB products) Wind unanimously expected an average PE of 46.3X. In view of the fact that the application range of the company's main products bonded NdFeB is more limited than that of sintered NdFeB, we give a discount of 15%, and the corresponding target price of 39.4X PE, is 18.52yuan (the previous value is 19.2 yuan) according to the 21-year EPS, maintaining the "overweight" rating.
Risk tips: rare earth prices fluctuate sharply, the downstream of the product is depressed, and the production and research of new products is lower than expected.
