2021-11-02Zhou Ershuang and Zhu Beibei of Soochow Securities Co., Ltd. conducted a study on Jiejia Weichuang and released a research report "2021 Third Quarter Report Comments: Stable Growth in the First Three Quarters, Waiting for New Product Release", this report gives an overweight rating to Jiejia Weichuang, and the current stock price is 112.38 yuan.
Jiejia Weichuang (300724) incident: Jiejia Weichuang released three quarterly reports, in the first three quarters of 2021, the company achieved operating income of 3.745 billion yuan, a year-on-year increase of +21.43%; net profit attributable to the mother of 599 million yuan, +33.06% year-on-year.
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2021Q1-Q3 revenue growth steadily, profit growth rate remained in a stable range
In the first three quarters of 2021, the company achieved operating income of 3.745 billion yuan, a steady growth of +21.43% year-on-year. The company's profit growth rate is higher than the revenue growth rate, the first three quarters of the realization of net profit attributable to the mother of 599 million yuan, year-on-year +33.06%; after deducting non-attributable net profit of 559 million yuan, +36.0% year-on-year. In the single quarter of Q3, the company achieved revenue of 1.12 billion yuan, a year-on-year -5.87%; net profit attributable to the mother of 142 million yuan, a year-on-year increase of -29.64%. The year-on-year decline in revenue and profit was mainly caused by fluctuations in the rhythm of acceptance, and the overall situation was still in a reasonable range.
The expense ratio is well controlled, and the Q3 net profit margin increased slightly year-on-year
The gross profit margin of the company in the first three quarters of 2021 was 25.70%, year-on-year -1.34pct; net profit margin was 16.00%, +1.6pct year-on-year. The expense ratio for the period was 8.20%, compared with -0.3pct year-on-year. Among them, the sales expense ratio was 1.4%, -0.7pct year-on-year; the financial expense ratio was -0.5%, year-on-year -1.4pct, and the decline in the financial expense ratio was mainly due to the increase in interest income brought about by the increase in deposits; the management expense ratio (including research and development) was 7.3%, +1.7pct year-on-year, mainly due to the obvious increase in the research and development expense rate. In a single quarter, the company's gross profit margin in the single quarter of 2021Q3 was 25.0%, -1.0pct, -1.5pct; net profit margin was 12.9%, year-on-year -3.7pct, -4.0pct. Q3 single-quarter period expense ratio was 8.8%, -2.0pct year-on-year, +0.8pct sequentially.
Inventories and contractual liabilities grew positively, with steady short-term performance growth
Inventory and contract liabilities stable growth, as of the end of 2021Q3, the company's inventory of 4.351 billion yuan, a year-on-year +33.61%; the company's contract liabilities of 3.615 billion yuan, a year-on-year +9.1%, we judge that short-term performance will grow steadily. The company's payment collection is good, and the operating net cash flow in the first three quarters of 2021 was 555 million yuan, -3.4% year-on-year.
Equity incentives core management and business personnel, highlighting the company's confidence in development
On October 28, 2021, the Company announced the draft of restricted equity incentives. It is proposed to grant 618,500 restricted shares to employees of the company, accounting for 0.18% of the total share capital, covering a total of 131 people, including 2 senior executives, 19 foreign incentive recipients and 110 core technology and management personnel. The grant period of the plan shall not exceed 48 months at a maximum of 48 months, and the grant price will be $60 per share. This incentive plan sets the company-level performance appraisal indicators for 2021-2023, based on the deduction of non-attributable net profit in 2020, the growth rate of non-attributable net profit from 2021 to 2023 is not less than 30%/60%/80%, that is, the net profit of non-attributable to the mother is 6.12/7.54/848 million yuan, respectively, +30%/23%/12% year-on-year, and the compound growth rate of non-attributable net profit in 2020-2023 is 22%.
Profit forecast and investment rating: According to the company's acceptance rhythm, we will reduce the company's net profit attributable to the parent from 9.2/10.4/1.20 billion yuan to 8.2 (down 11%)/9.8 (down 6%)/11.6 (down 3%) billion yuan from 9.2/10.4/120 million yuan, respectively, and the current stock price corresponding to the dynamic PE is 48/41/34 times, maintaining the "overweight" rating.
Risk warning: the development of new products is not as good as market expectations, the iteration of downstream processes is not as good as market expectations, and the risk of customer default.
A total of 21 institutions have given ratings in the last 90 days, with 16 buy ratings and 5 overweight ratings; the average target price of institutions in the past 90 days is 208.75; the Securities Star Valuation Analysis Tool shows that jiejia Weichuang (300724) good company rating is 4 stars, good price rating is 2 stars, and valuation comprehensive rating is 3 stars.