\u3000\u3000 Shenzhen H&T Intelligent Control Co.Ltd(002402) (002402)
Event: Shenzhen H&T Intelligent Control Co.Ltd(002402) released the annual report of 2021. In 2021, the company realized an operating revenue of 5.986 billion yuan, a year-on-year increase of 28.3%; The net profit attributable to the parent company was 553 million yuan, a year-on-year increase of 39.73%; The non net profit deducted was 498 million yuan, a year-on-year increase of 35.89%. In the fourth quarter of 2021, the company achieved an operating revenue of 1.609 billion yuan, an increase of 9.08% over the same period; The net profit attributable to the parent company was 115 million yuan, a year-on-year decrease of 3.33%.
Continuous growth in performance and controllable profitability: in 2021, the supply and demand situation of the upstream electronic components market had a continuous impact on the middle and downstream industries, and the global transportation tension, price rise, exchange rate fluctuation, energy saving and power restriction and other factors also had a phased impact on the enterprise. In order to cope with the adverse impact of systemic risks caused by the severe market environment on the company, The company gave full play to its comprehensive advantages and ensured the orderly production and operation of the company by preparing goods in advance, locking the price of raw materials, transmitting prices to the downstream and carrying out forward foreign exchange transactions; At the same time, the company maintains close communication and coordination with upstream suppliers and downstream customers to ensure the supply of raw materials and the delivery of clients, and the gross profit margin of the controller business segment is controlled within a controllable range.
Household appliances and tools are driven by two wheels, and automotive electronics drive growth: we believe that the effective driving factor for the growth of household appliance industry is not only the simple demand pull, but also the continuous penetration of technology upgrading and intelligent trend. In terms of electric tools, driven by overseas demand and Chinese demand, it is expected to promote the prosperity of the industry. According to the company’s annual report, in terms of automotive electronic controllers, the company has formed a strategic partnership with global well-known automotive electronic parts manufacturers, such as BorgWarner and Nico, and obtained a number of platform level projects. In terms of China’s industrial layout, the company has made substantial progress in cooperation with vehicle manufacturers such as China’s new forces Weilai, Xiaopeng and ideal. Some projects such as seat control, hod (steering wheel off hand detection), front and rear lamp control and charging pile have entered the stage of trial production or mass production. With the increasing demand for electrification and intelligence in the automotive industry, we believe that under the joint action of technology guidance and consumption traction, the automotive electronics market continues to grow steadily, thus driving the growth of the company’s performance.
Chengchang technology was split and listed to accelerate the development of phased array T / R chip business: the company’s subsidiary Chengchang technology has submitted the application materials for initial public offering and listing on the main board of Shenzhen Stock Exchange to the CSRC, which was accepted by the CSRC on June 28, 2021. We believe that the spin off and listing of Chengchang technology will help Chengchang technology make use of the power of the capital market, continue to increase R & D investment, improve the core competitiveness of technology and obtain more high-quality projects; At the same time, accelerate the progress of 5g millimeter wave communication and satellite Internet application, and realize mass production.
Profit forecast, valuation and rating: we maintain the forecast of Shenzhen H&T Intelligent Control Co.Ltd(002402) net profit of RMB 786 / 1.05 billion in 2022-2023, and add the forecast of net profit of RMB 1.355 billion in 2024, corresponding to pe25 / 18 / 14x. We are optimistic about the development prospect of the company as a leading enterprise in intelligent control and maintain the “overweight” rating.
Risk tip: lack of core leads to lower than expected shipment and lower demand for electric tools.
