Events:
The company released its quarterly report on the evening of April 28. 2021Q1 achieved a revenue of 432 million yuan, an increase of 77.71% over the same period last year, a net profit of 91 million yuan, an increase of 41.85% over the same period last year, and a deduction of 86 million yuan for non-net profit, an increase of 49.99% over the same period last year.
Comments:
The demand at home and abroad is strong, and the performance in the first quarter is high. Benefiting from the strong demand at home and abroad, the company's 21Q1 revenue and profits increased by 78% and 42% respectively over the same period last year, significantly faster than the 47% and 22% of 20Q4. Benefiting from the limited overseas production capacity and the increased demand for leisure and entertainment at home under the influence of the epidemic, the company's income from plastic bathroom pumps and stainless steel pumps has increased rapidly, leading to a high increase in income.
At present, the company receives orders better. At the end of the first quarter, the accounts received in advance increased by 82% compared with the same period last year. It is expected that the rapid growth in revenue in the second quarter is expected to continue.
The net interest rate improved month on month, and the expense rate decreased compared with the same period last year. In terms of net interest rate, the company's 21Q1 net interest rate is 21.05%, a month-on-month increase of 1.66 pct, over 20Q4, ending the decline in net interest rate since 20Q3.
The company through reducing costs and efficiency, moderate price increases and other measures to deal with the price rise of raw materials, profit margins are expected to stabilize. From the expense point of view, the Q1 expense rate decreased from 1.91pct to 4.80% compared with the same period last year, in which the sales / management / R & D / financial expense rate changed from-1.41 /-1.18 / + 0.47 / + 0.21 pct to 0.90% / 1.44% / 3.01% /-0.55%, respectively. The decline in the sales expense rate is mainly due to the accounting of freight charges in operating costs under the new revenue standards. At the same time, the company's R & D investment increased over the same period last year.
Steady expansion of production capacity, expand categories to cultivate new momentum. The domestic and foreign water pump market prospect is broad, the company focuses on the electric pump research and development, the design, the production and the sale, has more than 40 years production management experience, gradually establishes the brand, the channel, the customer and so on many aspects competitive advantage, has become the domestic plastic bathroom pump, the stainless steel pump head enterprise, the market share is expected to continue to increase in the future. At present, the first phase of the company's civil centrifugal pump industrialization project is expected to be put into production in June 2021, with an annual production capacity of 344000 stainless steel centrifugal pumps and 56000 submersible pumps. At the same time, the company actively develops seawater pumps, chemical pumps and other new products, improve the company's product chain, and cultivate new momentum for growth.
Profit forecast: it is estimated that the EPS from 2021 to 2023 is 1.59 / 1.82 / 2.06 yuan respectively, and the current stock price corresponding to PE is 19.49 / 17.00 / 15.02x. Cover for the first time, giving a "buy" rating.
Risk tips: overseas demand is lower than expected, market competition intensifies, raw material prices and exchange rate fluctuations.