Events:
On August 13, the company released its semi-annual report for 2021: 2021H1 operating income of 280 million yuan, an increase of 21.24% over the same period last year; net profit of 64.1199 million yuan, up 30.72%; net profit of 22.2694 million yuan, up 597.80% over the same period last year; basic earnings per share of 0.13 yuan per share, up 30.19% over the same period last year; and weighted average return on net assets of 6.25%, an increase of 1.21pct over the same period last year.
Comments:
The performance has achieved rapid growth, and the effect of cost control is remarkable. During the reporting period, the company's operating income increased by 21.24% over the same period last year, and its net profit increased by 30.72% over the same period last year. The company's gross profit margin was 80.83%, down 4.86 pct from the same period last year; the net profit margin was 20.91%, an increase of 1.24pct over the same period last year. The expenditure rate of 2021H1 during the period was 76.16%, down 5.44pct from the same period last year, and R & D investment was 32.4145 million yuan, an increase of 13.06% over the same period last year.
The high-pressure turbine disk R & D project has been delivered on the ground, and the military business has become a new growth point. During the reporting period, the company's superalloy business achieved business income of 20.9679 million yuan, an increase of 86.76% over the same period last year, and sales of superalloy products increased by 190.13%. At the same time, increase the sales of products independently produced by superalloy materials. During the reporting period, the company entered a small batch production stage in the domestic research and development project of a certain type of engine high-pressure turbine disk, with a demand of about 60 pieces in 2021. With the continuous landing of the project, the military superalloy business will become an important contribution point of the company.
Military and civilian cooperation to help the long-term development of superalloy business. During the reporting period, Wanze Central South Research Institute and Central South University signed an agreement for the joint establishment of the State key Laboratory of Powder Metallurgy to build a collaborative research base for engine "one plate, two pieces" full chain research and development of superalloy preparation and development. At the same time, Wanze Central South Research Institute has carried out the research and development of a series of commercial engine blades, established the project and delivered some products.
During the reporting period, some of the company's civilian products business was affected by the epidemic, which caused customers to delay the delivery of orders. with the timely adjustment of production and marketing direction and the gradual relief of the epidemic situation, the civilian superalloy business will become the driving force for the company's long-term development.
Profit forecast and investment advice. It is estimated that the operating income of the company in 2021-22-23 will be 8.46 million yuan, 1.91 billion yuan, and the net profit will be 1.088 million yuan, 1.45 billion yuan, 0.40 yuan, 0.22, 0.29 and 40.57 times, respectively, respectively, and the corresponding PE will be 74.69, 55.67, respectively. Cover for the first time, giving a "buy" rating.
Risk hint: superalloy business expansion is not as expected; profit and valuation judgment is not as expected.