\u3000\u3000 Shinry Technologies Co.Ltd(300745) (300745)
Event: Shinry Technologies Co.Ltd(300745) announced the 2021 performance forecast, which is expected to achieve a revenue of RMB 900-950 million, a year-on-year increase of 154.46% – 168.59%; The net profit attributable to the parent company is 35-45 million yuan, which is converted from loss to profit.
The revenue in 2021 is expected to be RMB 900-950 million, with a year-on-year increase of 154.46% – 168.59%. During the reporting period, with the growth of sales volume of supporting customers of the company’s products, the revenue of the company’s products increased significantly at the same time. At the same time, the company’s new fuel cell related products in 2021 have made a large contribution to revenue and also promoted the company’s revenue growth. According to the calculation of the company’s annual expected median income of 925 million yuan, the company’s Q4 income was 278 million yuan, an increase of 8.17% month on month (Q3) and a decrease of 34.88% month on month (Q2) compared with Q3. We believe that the decrease of the company’s Q4 growth rate is mainly due to the tight chip supply, which restricts the company’s shipment. With the easing of chip supply in 2022 and the large volume of new customers and new models of the company, the revenue is expected to maintain a high-speed growth.
The profitability of 2021q4 has improved compared with Q3, and it is expected to continue to improve in the future. According to the company’s forecast, the net profit attributable to the parent company is 35-45 million yuan, and the overall loss stop profit is realized. At the same time, the overall share based payment expense of the company in 2021 is 53 million yuan. After excluding the impact of share based payment expense, the net profit of the company is expected to be 80 million yuan to 90 million yuan, and the operating net profit of the company has increased significantly. According to the calculation, the company’s Q4 share based payment expense is about 23.38 million yuan. After adding back the share based payment, the non net profit margin deducted is between 5.10% – 5.41%, which is further recovered compared with 4.92% of Q3. We believe that with the increase of the company’s revenue and product shipments, its operating capacity can continue to improve, and the profitability under cost sharing is expected to continue to improve.
The company has abundant orders on hand, and the improvement of 800V and intelligent driving penetration promotes the sustainable development of the company’s business. Shinry Technologies Co.Ltd(300745) as the leading company of Shanxi Guoxin Energy Corporation Limited(600617) automotive vehicle power supply, it has continuously invested in R & D since its establishment. At present, its supporting customers include popular models such as Xiaopeng, jikrypton, Byd Company Limited(002594) and Honda, such as P7, jikrypton 001, DMI, etc. The products of Xinrui company apply SiC scheme, which has the advantage of technology first mover under the application of 800V platform. At the same time, we believe that the company has a technical scheme with high functional safety level, which can meet the level of asild and the redundancy requirements of power supply system for intelligent driving at level L2 and above, and is expected to obtain a higher market share in the future. In addition, the volume and weight of the company’s G6 generation board integrated products are reduced by 30-45% compared with the current G5 generation products. We think its cost is relatively lower. After mass production, it is expected to further improve the company’s profit margin.
The company’s overseas business expansion is expected to accelerate: the supporting enterprises of the Shanxi Guoxin Energy Corporation Limited(600617) automobile industry chain have accumulated rich product experience in the development of the industry, and are expected to occupy a certain market share in the world in the future. At present, Xinrui has established a joint venture with Lear Lear (Mauritius). Combined with the orders obtained by Honda and other car companies, the company’s overseas business expansion is expected to accelerate.
Investment suggestion: we believe that the performance forecast of 2021 company is in line with the expectation, and the profit margin slightly exceeds the expectation, which shows that the operation ability of the company is gradually enhanced, and the chip supply is expected to ease in 2022. The company’s revenue and profit are expected to continue to maintain high-speed growth and maintain the “buy” investment rating of the company.
Risk warning: the recovery of automobile chip supply is less than expected, the volume of new models of customers is less than expected, the acquisition of new projects is less than expected, and the performance forecast is the preliminary calculation result. The specific financial data shall be subject to the disclosure of the company.
