Incident: The company released the 2021 semi-annual performance forecast on the evening of July 14, 2021. Among them, the net profit returned to the mother for the first half of 2021 was 0.75-83 million yuan, an increase of 90-110% over the previous year.
The reviews are as follows:
Plant lighting drove a month-on-month acceleration in Q2 performance. The company released its 2021 semi-annual report performance forecast on the evening of July 14, 2021. Among them, net profit for the first half of 2021 was 0.75-83 million yuan, an increase of 90-110% over the previous year. According to the median value doubling for the first half of the year, the Q2 performance was estimated to be about 43 million, an increase of 87% over the previous year, an increase of 16% over the previous month. The performance side mainly results from the expansion of domestic, overseas and emerging application markets such as phyto-lighting. The performance side strictly controls costs and expenses. Expenses and operating performance have also increased steadily.
Based on advantages such as technology and channels, seize the opportunities of plant lighting to reach a higher level. The company led Mr. GUICHAO HUA, Chairman of the switching power supply expert, to build an international first-level echelon for more than 80 countries and regions around the world. According to the company announcement, the company had plant lighting related products and orders as early as 2013. The company's advantages were reflected in first-mover advantages, including the layout of technology, patents, and intelligent interfaces. Furthermore, when the company was founded, it attached great importance to overseas markets. India and Mexico are expected to take the lead in seizing the dividend of plant lighting with reserve production bases, technology, channels, costs, etc., according to Technavio's research report In 2020, China's LED plant lamp exports exceeded 500 million US dollars, which increased more than fourfold year-on-year. We expect plant lighting to benefit from the penetration of cannabis in North America in the medium to short term, and the promotion of plant lighting for high-value crops and potential crops in the medium to long term will usher in continued high growth.
New growth: Cut into new energy charging and switching to create a second growth curve. The company entered the fields of new energy chargers and charging piles in 2017, and has now formed a product matrix for power exchange stations, vehicle chargers, etc., contributing 52.7035 million yuan in revenue in 2020, an increase of 46.17% over the previous year. It is expected that with the iteration of chargers and the development of the company's downstream customers, the scale effect of revenue and gross margin is expected to increase rapidly.
Performance forecast and investment valuation: We estimate that the raw materials mitigation company's operations are expected to continue to grow at a high level in the second half of the year, maintaining revenue of 1,415 million yuan and 1,843 million yuan respectively, and net profit of 221 and 306 million yuan respectively, up 36.6% and 38.5% year-on-year, corresponding to PE in 2021-2022, 40 and 29 respectively. Considering the company's high-power position in LEDs and benefiting from new explosions such as plant lighting, the company's growth momentum is sufficient to maintain the “buy” rating.
Risk warning: Plant lighting development is lower than expected, market size measurement bias risk, market competition risk, etc.