In 2021, revenue increased by 24.60% year-on-year, and net profit increased by 29.76% year-on-year. In 2021, the company achieved revenue of 1.132 billion yuan, an increase of 24.60% over the same period last year; a comprehensive gross profit margin of 51.96%, down 2.14 pct from the same period last year; a net profit of 413 million yuan, an increase of 29.76% over the same period last year; and a net profit of 341 million yuan, an increase of 13.74%. Profit distribution plan for 2021: cash dividend of 12.40 yuan (including tax) is distributed for every 10 shares.
Rates decreased during 2021 compared with the same period last year. In 2021, the rate for the period of the company is 15.93%, a decrease of 0.91pct compared with the same period last year. The sales rate increased, while the financial rate, management rate and R & D rate decreased in varying degrees.
Specifically:
(1) the sales rate is 5.76%, an increase of 0.29pct over the same period last year. (2) the management fee is 5.24%, which is lower than that of the same period last year by 0.13pct.
(3) the financial rate is-0.35%, a decrease of 0.69pct compared with the same period last year. (4) the R & D fee is 5.27%, which is lower than that of the same period last year by 0.39pct.
Revenue in the fourth quarter of 2021 increased by 52.64% compared with the same period last year, and net profit from home increased by 34.18%. In the fourth quarter of 2021, the company achieved revenue of 345 million yuan, an increase of 52.64% over the same period last year; comprehensive gross profit margin of 45.84%, down 5.92 pct from the same period last year; and net profit of 84 million yuan, an increase of 34.18% over the same period last year.
We believe that the company's net profit growth rate is lower than the revenue growth rate is mainly due to the company's comprehensive gross profit margin lower than the same period last year 5.92pct.
Rates decreased during the fourth quarter of 2021 compared with the same period last year. In the fourth quarter of 2021, the company's period rate was 19.76%, a year-on-year drop of 7.18pct. The financial rate has increased, while the sales rate, management rate and R & D rate have all decreased to varying degrees.
Specifically:
(1) the sales rate is 7.19%, a decrease of 1.82pct compared with the same period last year. (2) the management fee is 6.26%, which is lower than the same period last year by 1.82pct.
(3) the financial rate is-0.40%, an increase of 0.11pct over the same period last year. (4) the R & D rate is 6.71%, which is lower than that of the same period last year (3.65pct).
Look at the products:
(1) Distribution network smart equipment: revenue of 1.06 billion yuan in 2021, an increase of 25.17% over the same period last year; gross profit margin of 54.24%, a decrease of 2.15pct over the same period last year
(2) Distribution network information services: revenue in 2021 was 56 million yuan, an increase of 42.59% over the same period last year; gross profit margin was 20.06%, a decrease of 3.32pct over the same period last year.
The primary and secondary integration of equipment to solve the pain points of power grid operation, driving the rapid growth of the company's business volume. At present, there are some problems in the maintenance of distribution network in our country, such as "difficulty in fault research and judgment" and "high risk for operators". It is urgent to deal with faults accurately, quickly and efficiently. The company's main products, the primary and secondary intelligent on-column switches, rely on their remarkable advantages in fault research, performance parameters, safety and reliability, etc., the income continues to grow rapidly, and maintains a high gross profit margin, with a market share in the forefront of the industry.
With the steady progress of market expansion, the expansion outside Zhejiang Province continues to land, and the intelligent ring network cabinet enriches the company's primary and secondary product territory.
(1) in 2021, the company's market expansion has progressed steadily, and more products have been put into operation in Zhejiang, Jiangsu, Shaanxi, Fujian, Shanxi, Shandong, Henan and other provinces.
The proportion of the company's main business income outside East China (Northwest, North, Central, Southwest, South China, etc.) increased from 29.84% in 2020 to 39.39% in 2021.
(2) the company actively participated in the procurement activities of State Grid and Southern Power Grid. In 2021, it passed the verification of supplier qualification information of 10kV on-post circuit breakers, grounding short-circuit fault indicators, ring network cabinets and distribution terminals of State Grid Corporation. At the same time, it passed the joint prequalification of bidding for 10kV on-post circuit breakers, primary and secondary integration into set of on-post circuit breakers, distribution terminals and grounding short-circuit fault indicators. The company actively participated in the preparatory work for the market development of Southern Power Grid, and successfully passed the pre-qualification of suppliers of complete sets of automatic equipment for 10kV and 10kV vacuum circuit breakers of Southern Power Grid, and met the corresponding qualification requirements for subsequent market expansion to the whole country.
Profit forecast and valuation. We expect the company to make a net profit of 534 million yuan, 691 million yuan and 899 million yuan from 2022 to 2024. The corresponding EPS is 5.34,6.91,8.99yuan respectively. Based on the growth of the company itself, the continuous landing of the intelligent switch on the pillar outside Zhejiang Province, and the expansion of the business layout of the intelligent ring cabinet. Give the company 2022 PE25-30X, corresponding to the reasonable value range of 133.5-160.2 yuan. Maintain the "better than the market" rating.
Risk hint: the progress of the promotion of the intelligent pole switch in the power grid is lower than expected, and the business development progress of the company's intelligent ring cabinet is lower than expected.
