Net profit declined in the first quarter of 2021: the company achieved operating income of 192 million yuan in the first quarter of 2021, an increase of 49.87% over the same period last year. Net profit belonging to shareholders of listed companies was 9.1353 million yuan, down 14.69% from the same period last year. In the first quarter of 2021, operating costs increased by 55.8909 million yuan, or 73.34%, over the same period last year, mainly due to the increase in the scale of energy and electricity sales business in the first quarter. The increase in operating costs led to a decline in the company's net profit in the first quarter of 2021.
Due to the need of business development, the cost of the period increased significantly: in 2021, the company's sales expenses increased by 13.511 million yuan in the first quarter compared with the same period last year, an increase of 93.16%. This is mainly due to the increase of offices in business development in the first quarter and the increase in the salary and treatment of sales staff. In the first quarter, management expenses increased by 5.3401 million yuan, or 59.49%, over the same period last year, mainly due to the increase in the scale of the business and the increase in the salary and treatment of managers.
Reverse repurchase is used to implement the equity incentive plan or employee stock ownership plan in the later stage: as of April 9, 2021, the total number of shares repurchased by the company through the buyback special securities account was 5000900 shares, accounting for 2.08% of the company's total share capital. the lowest transaction price is 12.35 yuan per share, the highest transaction price is 15.19 yuan per share, and the total amount paid is 71.8143 million yuan (excluding transaction fees).
Investment suggestion: the company is the leader of the domestic power system controller, relying on the power industry platform to continue to develop new products, will continue to enter other fields in the future. We estimate that the EPS in 2021-2023 will be 0.56,0.57 and 0.61 yuan, and the corresponding PE will be 26,25 and 24 times, respectively, and continue to maintain the "overweight" rating.
Risk tips: sales of power plant business-related products are not as expected; the progress of new business is not as expected; downstream demand is not as expected; orders are not as expected.