occurrences
Ningbo Jingda released its 2021 annual report, and the performance was in line with expectations
The company achieved revenue of 534 million yuan in 2021, an increase of 25.53% over the previous year, and achieved net profit of 86 million yuan, an increase of 27.38% over the previous year.
The comprehensive gross margin fell 1.94 pcts to 37.62%, and the net profit margin remained stable at 16.02%.
Brief review
A leading precision molding machine tool enterprise in China, expanding from home appliances to lithium batteries in the downstream sector, the company's traditional business is air conditioning heat exchanger production equipment. It is mainly used in the fields of home appliances, automobiles, etc. In 2021, the smart home sector achieved revenue of 289 million yuan, an increase of 22.2% over the previous year.
Since 2020, the company has focused on developing products in the field of new energy vehicles. In 2021, the NEV/ordinary vehicle sector achieved revenue of 171 million yuan, an increase of 69.3% over the previous year. When production capacity is limited, production and sales of other low gross margin products are reduced.
Production equipment for drive motor cores, square cases, and 4680 battery structural parts was successfully launched. The order situation is good
In 2021, the company launched new products one after another in motor cores, square lithium battery structural parts, and 4680 battery structural parts. 1) MCP series presses, the first set of key equipment in China to produce iron cores for new energy vehicle drive motors, achieved mass sales, with sales volume increasing by 260% over 2020. 2) Battery cover presses that produce power batteries for new energy vehicles achieve mass sales. 3) The servo press for 4680 battery case molding was launched and successfully passed customer acceptance. 4) Cam-driven stretching presses for cylindrical shell stretching of new energy vehicle batteries formed a series and achieved sales; the double action cup press, a key equipment for the pre-punching cup process that improves material utilization and production efficiency, was successfully developed, laying the foundation for the company to gain a leading edge in the field of special molding equipment for new energy battery structural parts. By the end of 2021, the company's contract liabilities were 304 million yuan, an increase of 92% over the previous year. Considering the stability of the company's traditional business, the new orders mainly came from the newly expanded lithium battery industry.
It is the leading supplier of lithium battery structural parts, benefiting from the rapid expansion of production from downstream customers. The company's lithium battery structural parts equipment business customers are leading structural parts companies such as Zhenyu Technology and Kodali, and benefit from its significant expansion of production. In 2021, Zhenyu Technology's capital expenditure was 437 million yuan, an increase of 221% over the previous year, and Kodali's capital expenditure was 1.19 billion yuan, an increase of 163% over the previous year. From the equipment side, with the rapid increase in the installed demand for power batteries, the demand for structural components of power batteries will also increase in equal proportion.
Maintaining a “buy” rating
The company's net profit for 2022-2024 is expected to be 108, 1.35 million yuan, and 164 million yuan, respectively, up 25.7%, 24.9% and 21.9% year-on-year respectively. The corresponding EPS is 0.25, 0.31, and 0.38 yuan/share, respectively. Based on the latest closing price of 7.07 yuan on April 25, 2022, the corresponding PE is 20.1, 16.1 and 13.2 times, respectively. Maintain a “buy” rating.
Risk warning: R&D and promotion of new products fell short of expectations; sales volume of new energy vehicles was not urgent; downstream production expansion intensity was lower than expected; demand in the air conditioning industry declined.