The results in fiscal year 2021 exceeded our expectations
The company announced its results for fiscal year 2021 on June 28th: revenue was 3.117 billion yuan, an increase of 60.4% over the same period last year; net profit was 392 million yuan, an increase of 151.5% over the same period last year, corresponding to 1.03 yuan per share. The machine tool boom is high, and the superimposed company has a strong market development. The performance exceeded our and market expectations.
The domestic market has a strong growth rate, and superior products are growing at a high speed. From a regional point of view, 2021FY Tianjin domestic sales of 2.67 billion yuan (+ 85.796), overseas sales of 447 million yuan (+ 14.3%), 20Q2 from the domestic market rapid repair, has become the core force driving revenue growth. In terms of products, precision lathes, precision grinding centers, precision grinding machines / other revenue accounts for 86.7%, 6.3%, 6, 3.5%, 3.5%, 0.49%, 3.1%, and the sales of precision lathes, the main products, have increased significantly by 61.6%. The company's share of center machines in China is about 60%, and the turret machine is firmly in the top three.
Gross profit margin, net profit margin and inventory turnover increased significantly. 2021FY's gross profit margin increased by 4.4ppt to 24.6% compared with the same period last year, and the core is the economies of scale brought about by the increase in capacity utilization. The company's sales / management expense rate fell by 1.4/1ppt, and the final net profit margin increased significantly to 12.6%. Under the high prosperity of the industry, the company attaches great importance to supply chain and production management. The average inventory turnover days of 2021FY Company is 100 days, which is 49 days less than that of 2020FY, and the delivery time is ahead of its peers.
The net operating cash flow reached a record high and continued to give back to investors. The net operating cash flow of 2021FY is 300 million yuan, a record high in the past five years. The quick ratio of the company's current ratio is 2.4pm 1.6 respectively, and the short-term solvency is stable. The company declared a dividend of 2021 Hong Kong dollars per share for the whole year, with a total dividend of 151 million Hong Kong dollars, the highest dividend since listing.
Trend of development
Orders on hand are full, and the downstream industry is booming. The company has a monthly order of more than 1000 units in April, with an order of about 4300 units, more than 1 billion yuan. Looking forward to the second half of the year, the company is still optimistic about the prosperity of the machine tool industry, mainly based on: 1) after the core shortage of cars is alleviated, the second half of the year will enter the stage of adding inventory; 2) there are no signs of recession in various segments such as 3C4 dynamic hydraulic; 3) overseas demand has rebounded and the current order has returned to the pre-epidemic level. The company has actively put into production, and the new plant in Anhui has been completed in March this year. We expect to provide the group with 30% casting capacity and increase the overall production capacity of CNC machine tools by 10% and 25%.
Profit forecast and valuation
Due to the machine tool scene and the company's better-than-expected market development, we raised EPS28.8% to 1.20 yuan per share in fiscal year 2022 and introduced a forecast of 1.40 yuan per share in fiscal year 2023. The current share price corresponds to a dynamic price-to-earnings ratio of only 8.2max 7.0x for 2022amp 2023E. Taking into account the company's active expansion of production, we raised the target price by 529 to 13.94 Hong Kong dollars, corresponding to 2022max 2023E is 10max 9x, an increase of 22.3%, maintaining the "outperform industry" rating.
Risk.
The prosperity of the industry is not as good as expected.