On November 1, 2021, Hongya CNC (002833) issued an announcement that: Jenny You You You Jiaying of Lingji Capital, Cederberg Capital Torrent, Tianyu Investment Xiao Jianzhong, Yuancheng Investment Liu Jiangbo, CITIC Construction Investment Ye Tianming, Hongyi Faraway Fund Xu Fan, Chongyang Investment Wu Weirong, Wanli Fuda Investment Shen Liangcheng, Yuankui Asset Management Zhang Tianbao, Anxin Fund Chen Yifeng, Brother Brother Asset Management Liao Zeyu, Biyun Asset Management Gao Xinyu, Yingmi Fund Chen Long, GF Securities Fan Fangzhou, Anxin Fund Chen Si, Anxin Fund Zeng Bowen, TEDA Manulife Fund Ding Shen, ICBC Credit Suisse Fund Yan Yanrong, Wan Shuntong Asset Management Yang Zhizhi, Guoshou Pension Yu Lei, Oriental Asset Management Wu Yixin, GF Fund Li Xiao, Huaxia Fund Yu Yaxin, Wanli Fuda Investment Tang Chao, Yingrui Investment Ma Zhiqin, Longquan Investment Ma Xuzhen, Xinhua Fund Zhou Xiaodong, Ted Jiahe Investment Ding Jianhao, Nanjing Securities Jin Shufang, Weiman Investment Li Qiang, Ruige Asset Management Liu Zhenhong, Bank of Nanjing Shu Jiafu, GF Securities Yu Yinjun, Yisheng Asset Management Wang Yiyang, China Commercial Fund Li Zhuojian, Fenghe Zhengqin Investment Zhang Jia, CITIC Construction Investment Wang Haotian, GF Securities Liu Suxian, Pop Investment Sun Weipeng, Boshi Fund Cheng Yuan, Qianhai Huabang Fund Ren Xiaochen, Qianhai Huabang Fund Lin Juan, Pacific Securities Yang Junlong, Zheshang Securities Pan Yili, Zheshang Securities Wang Huajun, Xinhua Fund Zhao Qiang, Pengyang Fund Wang Bo, Zhonggeng Fund Xiong Zhenghuan, Ping An Fund Zhang Qiaobo, Zheshang Securities Yin Tianyu, Jefferies Financial Boya Zhen, Affin Hwang (Malaysia) Brian Yau, Hengyi Capital Chen Xiaoou, CDH Investment Huang Yanjie, Grandeur Peak Daniel Xu, Jefferies Financial John Chou, Yuanfeng Fund Liu Shengyao, Xiniu Investment Shao Yifan, Tianfeng Asset Management Qiu Tian, Zheshang Securities Zhao Jinghui, Guoshou Asset Management and Chuan, Huaan Securities Shi Haoyun, Minsheng Securities Guan Qiliang, ICBC Credit Suisse Fund Xing Mengxing, Southern Fund Chen Shuangyang, Shen Wanhongyuan Liu Jianwei, Ruijun Asset Bi Muchao, Guoyuan Securities Man Zaipeng, Guotai Fund Li Heng, Huaan Securities Li Chenying, Huaan Machinery Liu Mengxiang, Guanxu Investment Pan Shilong, KGI Securities Guo Liangliang, Huaan Securities Guo Qianqian, China Merchants Securities Zhu Yiqing, Huaan Securities Sun Weidang, CITIC Construction Investment Chang Yile, Zhongtai Securities Zheng Yameng, Gopher Asset Zhou Yuhui, Everbright Prudential Fund Lin Xiaofeng, CICC Asset Management Xue Yipin, Guoyuan Securities Qin Yanan, Harvest Fund Tan Li, Invesco Great Wall Fund Zhang Jing, Huaan Securities Li Jiang, Taixin Fund Zhang Zhenzhuo, GF Fund Wang Song, Wanjia Fund Chen Jiayun, Local Asset Manager He Shaofeng, BOCOM Schroder Fund Gao Yang, Shen Hao of Orient Securities, Gao Qunshan of Xingquan Fund, and Zhang Wenli of Shanghai Investment Morgan investigated our company on October 29, 2021.
The main contents of this survey are:
Q: The main reason for the company's performance growth in the third quarter in the face of rising raw material prices and economic downturn?
A: The company's sales in the third quarter and the first three quarters have increased significantly, and domestic sales have maintained steady growth, but the growth rate has slowed down slightly due to the impact of real estate policies and other factors. Overseas sales continued to maintain rapid growth, of which Eastern Europe, Southeast Asia and other regions increased significantly, further enhancing the acceptance and recognition of the company's products in overseas markets.
Q: In the context of commodities at a high level, why can the price of raw materials rise, and the gross profit margin can still maintain or even increase slightly?
Answer: The company's procurement costs are mainly composed of direct procurement and outsourcing processing, the cost of outsourced processing parts has risen with the price increase of bulk commodities such as steel, aluminum, etc. Direct procurement has formed a scale due to the company's production, and the procurement price has certain advantages. Taken together, the cost is generally stable. In terms of product structure: the proportion of edge banding machines maintained a slight increase, the proportion of high-end models increased slightly, and the gross profit margin in the third quarter was slightly higher than that in the previous two quarters.
Q: What is the company's current order in hand?
A: There are two main reasons for the slowdown in the growth rate of the company's orders in the second half of the year: (1) the introduction of stricter real estate control policies in China and the outbreak of funds and operational emergencies in the real estate industry have affected the domestic consumer market. (2) Although the demand for foreign markets continues to grow, the speed of delivery slows down due to the impact of transportation prices, containers and other factors. With the introduction of housing loan policies and the relaxation of regulatory policies, the domestic consumer market still exists. In terms of overseas markets, it is expected that the transportation problem will further improve after Christmas.
Q: The current production capacity and the production capacity of each base?
A: The company's production base in Guangzhou is relatively scattered, and in the future, it is planned to use Master Intelligent as a production base for management headquarters and intelligent connection equipment, and other products are planned to be distributed in Shunde and other manufacturing bases to achieve the production of the whole industry chain, further improve production efficiency and control costs. The construction of the Shunde base is progressing normally and is expected to be put into operation in the second half of 2023.
Q: How is the new product launch progressing?
A: At present, the high-speed wooden door production line and the five-axis machining center have basically completed the test, and have the conditions for marketing, and it is planned to complete the development and launch at the end of this year or the beginning of next year. The five-axis machining center is mainly used in solid wood processing, and will be targeted at demand markets in Eastern Europe, Western Europe, the United States and Southeast Asian countries in the future. The company will make use of the successful experience of automated wiring of sections that have been applied to downstream furniture production to gradually launch automated production lines for cutting and banding, providing more suitable production solutions for most furniture manufacturers. In addition, in order to meet the needs of downstream furniture production, the company actively uses the capital market platform to merge and absorb domestic advanced furniture equipment automatic paper cutting intelligent packaging technology, further improve the industrial chain, and plans to launch new products at the end of this year or early next year.
Q: How does the company expand its market share?
Answer: (1) Continue to extend the industrial chain and constantly develop new products. (2) Increase the intensity of opening up markets at home and abroad, focus on improving product performance in the domestic market, and take the high-end route.
Q: Will the company consider price reductions in the process of seizing market share?
A: The company will formulate strategies based on market demand and market share improvement targets, including but not limited to phased preferential measures.
Q: What is the future growth level of the industry?
A: This year, the industry has grown in the first half of the year, and the growth rate has declined in the second half of the year. Most of the orders of domestic custom furniture enterprises come from new houses, and a small part comes from second-hand houses and fine decoration. Whether the industry picks up next year still mainly depends on the real estate new home sales data and real estate completion data.
Hongya CNC main business: panel furniture machinery special equipment research and development, design, production and sales.
Hongya CNC's 2021 third quarter report shows that the company's main revenue was 1.858 billion yuan, up 58.1% year-on-year; net profit attributable to the mother was 430 million yuan, up 74.52% year-on-year; deducted non-net profit was 403 million yuan, up 92.9% year-on-year; among them, in the third quarter of 2021, the company's single-quarter main revenue was 655 million yuan, up 46.88% year-on-year; single-quarter net profit attributable to the mother was 149 million yuan, up 48.81% year-on-year. In a single quarter, the non-net profit was 135 million yuan, up 52.54% year-on-year; the debt ratio was 32.09%, the investment income was 18.8837 million yuan, the financial expense was 5.379 million yuan, and the gross profit margin was 33.87%.
A total of 7 institutions have given ratings in the last 90 days, 6 buy ratings and 1 overweight rating; the average target price of institutions in the past 90 days is 42.47; the Securities Star Valuation Analysis Tool shows that Hongya CNC (002833) good company rating is 3.5 stars, good price rating is 3.5 stars, and valuation comprehensive rating is 3.5 stars.