Event: the company released the 2020 annual report, the company achieved operating income of 1.397 billion yuan in the past 20 years, an increase of 17% over the same period last year; the net profit of returning to the mother was 402 million yuan, an increase of 24% over the same period last year, and basic earnings per share was 3.35 yuan. Cash dividends of 20 yuan (including tax) were distributed to all shareholders for every 10 shares, and the results were in line with expectations.
The income of middle motor and hub motor is growing rapidly. In the past 20 years, the sales income of the company's mid-set motor, hub motor, instrument, controller and battery business was 6.160.65, 1.21max, 0.77 million, respectively, compared with the same period last year. + 26%, + 26%, 21%, 19%, 19%, 12%, 10%, 10%. Among them, the rapid growth of motor sales revenue mainly benefited from the strong demand for electric bicycles in Europe and the United States.
The profitability has improved steadily, and the gross profit margin of the motor has increased slightly. The company actively promotes lean management and large-scale production. Under the background that freight charges are included in operating costs over the past 20 years, the comprehensive gross profit margin and net profit margin reached 43.27% and 28.79% respectively, an increase of 0.51 pm 1.73pct over the same period last year, and profitability continued to enhance.
Among them, the gross profit margin of middle motor and hub motor was 54.03% / 43.40% respectively, an increase of 2.60pm and 2.29pct over the same period last year, mainly benefiting from the reduction of material costs and the improvement of production efficiency.
Motor shipments are growing rapidly, and overseas demand is expected to grow high in 21 years. In the past 20 years, the company's sales of mid-set motors and hub motors were 39.68 × 8638 million respectively, compared with the same period last year, + 29% and 27% respectively. The demand for electric bikes in Europe and the United States is strong, and the export volume of 21Q1 Taiwan electric bicycles has increased by 40% compared with the same period last year. Under the influence of the epidemic, overseas people's travel habits have changed, and the demand for overseas electric bicycles in 21 years is expected to continue.
Actively explore the United States and domestic markets, is expected to bring new performance increments. The US electric bicycle market started late and the penetration rate is low. Total sales of US electric bikes affected by the epidemic are expected to double in 20 years, and the penetration rate is expected to exceed 2.7% by 25 years. The company will increase support to downstream OEM factories and fully grasp the development opportunities of the American market. At the same time, the company starts the domestic market layout and takes the initiative to intervene in the domestic shared bicycle market. The company's performance is expected to usher in a new performance increment.
Investment suggestion: it is estimated that in 21-23, the company will achieve a net profit of 5.24x714max, RMB 947m, and YoY+30%/36%/33%,EPS 4.36A, 5.94A, 7.87RMB, maintaining the "buy" rating.
Risk hint: the sales of electric bicycles are not as expected, the domestic market is not as expected, and the price of raw materials is rising.