Event description:
In 2020, the company achieved an operating income of 693 million yuan, an increase of 6.86% over the same period last year, and a net profit of 93 million yuan, an increase of 16.53% over the same period last year.
Event comments:
To overcome the impact of the epidemic, the main business grew steadily. In 2020, under the influence of the epidemic, relying on the accumulation in the field of filter materials in the past three decades, the company actively adjusted its business layout and product portfolio, and all businesses achieved growth. Among them, the income of air filter screen and screen board reached 330 million yuan, an increase of 6.53% over the same period last year; the income of air conditioner wind turbine and its surrounding products reached 246 million yuan, an increase of 2.97% over the same period last year; due to the increased market demand for high-end filter materials, other business revenue increased by 41.54% to 54 million yuan.
The net interest rate has increased slightly, and the change in accounting standards has led to a decline in the rate of sales expenses. In 2020, the gross profit margin of the company's business increased slightly in all sectors, pushing the overall gross profit margin up 0.39pct to 31.96% year-on-year, and the net profit margin rose 1.11pct to 13.46% year-on-year. Due to the impact of the change in accounting standards, the company adjusted the transportation fee to the contract performance cost, resulting in a year-on-year reduction of 41.67% to 24 million yuan in sales expenses and a 2.88pct decrease in sales expense rate to 3.46% compared with the same period last year. The company management expense rate / financial expense rate is relatively stable.
Expand the five major business departments to open up the internal and external cycle. The company promotes the establishment of five major business departments: home appliances, big health, big consumption, mobile transportation and advanced materials, trying to grasp the strong demand for high-end filter materials (especially in the field of automobile air filtration). Accelerate the realization of the application of end products from market demand discovery to open up the internal circulation of "market-R & D-production" Expand the international market, make every effort to promote the external circulation of "new products-new areas-new markets", and form a circulation mechanism that combines internal and external.
Investment rating and valuation: we downgraded the company's 2021, 2022, and 2023 net profit to 1.11, 1.31, and 158 million, respectively, corresponding to the PE of 22-19-15, downgraded to the "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.
