China Soldier Red Arrow (000519): 1H22 net profit increased 115% and profitability increased significantly

中金公司 · Aug 19, 2022 08:51 · Researches

1H22 业绩符合我们预期

公司公布1H22 业绩：实现收入32.03 亿元，同比增长11.19%，归母净利润7.02 亿元，同比增长114.61%，扣非净利润6.79 亿元，同比增长120.25%，主要由于培育钻石及工业金刚石产销两旺，持续快速增长。分季度看，公司1Q/2Q22 分别实现收入13.82/18.22 亿元，同比分别增长1.2%/20.2%，归母净利润2.81/4.20 亿元，同比分别增长191.0%/82.5%，环比分别扭亏/增长49.24%。我们认为随着公司培育钻石技术持续迭代，产能积极扩张，特种装备产品结构调整，公司盈利能力有望逐步改善，全年业绩快速成长可期。

发展趋势

1、超硬材料业务快速增长，特种装备业务实现扭亏。1）超硬材料：1H22实现收入16.04 亿元，同增18.30%，收入占比达50.06%，同增3ppt，净利润6.80 亿元，同增98.69%，毛利率/净利率同增18.34/17.16ppt 至54.73%/42.41%；2）特种装备及其他：1H22 实现收入13.52 亿元，同增10.01%，净利润1.10 亿元（去年同期亏损2962 万元），毛利率/净利率同增4.02/10.54ppt 至20.47%/8.13%；3）汽车及零部件：1H22 实现收入2.61 亿元，同降13.72%，亏损2560 万元（去年同期亏损145 万元），毛利率/净利率同降7.16/9.33ppt 至2.54%/-9.81%。

2、培育钻石业务持续向好，盈利能力提升明显。公司1H22 毛利率36.2%，同增11.1ppt，主要由于高毛利的培育钻石业务占比提升，以及特种装备盈利能力改善；销售费用率同降0.2ppt 至0.8%，管理+研发费用率同降0.4ppt 至10.9%，规模效应进一步显现，财务费用率同降0.6ppt 至-1.3%，综合影响下，公司净利率同比提升10.6ppt 至21.9%。

3、培育钻石持续高景气度，公司研产共进，积极扩产。伴随海内外诸多品牌商积极布局培育钻石，消费者接受度日益提升，培育钻石赛道持续高景气度可期。公司产能规模业内领先，且在手现金充足（1H22 货币资金53.9亿元），我们预计后续有望快速扩产，巩固领先优势；同时公司技术不断进步，已于6 月突破10ct 以上MPCVD 培育钻石毛坯批量制备技术，我们看好公司持续快速增长势头。

盈利预测与估值

考虑到公司高毛利的培育钻石业务产能快速扩张，带动盈利能力上行明显，以及特种装备业务扭亏，我们上调2022/2023 年归母净利润预测9%/8%至13.50/17.28 亿元，当前股价对应2022/2023 年分别38/29 倍市盈率，维持跑赢行业评级，上调目标价8%至40 元，对应2022/2023 年41/32 倍市盈率，有10%上行空间。

风险

培育钻需求不及预期；产能投放不及预期；行业竞争加剧

1H22 performance is in line with our expectations

The company announced 1H22 results: revenue reached 3.203 billion yuan, an increase of 11.19% over the same period last year, and net profit returned to the mother was 702 million yuan, an increase of 114.61% over the same period last year, deducting 679 million yuan from non-net profit, an increase of 120.25% over the same period last year, mainly due to the rapid growth of diamond and industrial diamond production and sales. On a quarterly basis, the company's 1Q/2Q22 realized revenue of 1.382 billion yuan, an increase of 1.2%, 0.2%, respectively, and a net profit of 281%, an increase of 420 million yuan, an increase of 191.0%, 82.5%, and a turnround / increase of 49.24%, respectively. We believe that with the continuous iteration of the company's diamond technology, the active expansion of production capacity and the adjustment of the product structure of special equipment, the company's profitability is expected to improve gradually, and the annual performance is expected to grow rapidly.

Trend of development

1. The business of superhard materials has grown rapidly, and the business of special equipment has achieved a turnaround. 1) Superhard materials: 1H22 realized income of 1.604 billion yuan, same increase of 18.30%, income accounted for 50.06%, same increase of 3ppt, net profit of 680 million yuan, same increase of 98.69%, gross profit / net profit increased to 54.73% and 42.41%, respectively. 2) Special equipment and other: 1H22 realized income of 1.352 billion yuan, up 10.01%, net profit of 110 million yuan (loss of 29.62 million yuan in the same period last year), and gross profit / net profit increased by 4.02/10.54ppt to 20.47% and 8.13% respectively. 3) Automobile and spare parts: 1H22 realized income of 261 million yuan, down 13.72%, loss of 25.6 million yuan (loss of 1.45 million yuan in the same period last year), and gross profit margin / net profit rate both reduced 7.16/9.33ppt to 2.54% and 9.81%.

2. Cultivate the diamond business to continue to improve, and the profitability has improved significantly. The company's 1H22 gross profit margin is 36.2%, with the same increase in 11.1ppt, mainly due to the increase in the proportion of diamond business cultivated by high gross margin, and the improvement in the profitability of special equipment. The sales expense rate is also reduced to 0.8%, the management + R & D expense rate is also reduced to 0.4ppt to 10.9%, the scale effect is further revealed, and the financial expense rate is also reduced by 0.6ppt to-1.3%. Under the comprehensive influence, the company's net interest rate increases 10.6ppt to 21.9% compared with the same period last year.

3. Cultivate the diamond with high magnificence and demeanor, research and production together and actively expand production. With the active layout and cultivation of diamonds by many brands at home and abroad, the acceptance of consumers is increasing day by day, and the cultivation of diamond racing track can be expected. The company is industry-leading in production capacity and has sufficient cash on hand (1H22 currency funds of 5.39 billion yuan). We expect to expand production rapidly in the future to consolidate the leading edge; at the same time, with continuous technological progress, the company has broken through the batch production technology of diamond blanks cultivated by MPCVD above 10ct in June, and we are optimistic about the company's continued rapid growth.

Profit forecast and valuation

Taking into account the rapid expansion of the company's high gross margin diamond business capacity, leading to obvious upward profitability, as well as the turnround of the special equipment business, we raised the 2022 peg 2023 net profit forecast of 9% to 1.350 trillion yuan. The current stock price corresponds to the 2022max 2023 price-to-earnings ratio of 38,000,000 times earnings, maintaining the outperform industry rating, raising the target price by 8% to 40 yuan, and corresponding to the 2022amp 2023 41-32 times earnings ratio. There is 10% uplink space.

Risk

The demand for nurturing drill is not as expected; the production capacity is not as expected; the competition in the industry is intensified.

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中兵红箭(000519)：1H22净利润同增115% 盈利能力提升显著

China Soldier Red Arrow (000519): 1H22 net profit increased 115% and profitability increased significantly

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