\u3000\u3000 Shenzhen H&T Intelligent Control Co.Ltd(002402) (002402)
Key elements of the report:
The company released its annual report for 2021 on the evening of February 21, and the company achieved an operating revenue of 5.986 billion yuan (YoY + 28.3%); The net profit attributable to the shareholders of the listed company is 553 million yuan (YoY + 39.7%); The net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was 498 million yuan (YoY + 35.9%); In 2021, the company achieved EPS (basic) of 0.61 yuan. In 2021q4, the company achieved a revenue of 1.609 billion yuan (YoY + 9.08%), a net profit attributable to the parent company of 115 million yuan (yoy-3.33%), and a deduction of non net profit of 114 million yuan (YoY + 32.73%).
Key investment points:
The gross profit margin of the company is under pressure in the short term, and the net profit margin increases slightly: the comprehensive gross profit margin of the company in 2021 was 20.97% (yoy-1.96pct), of which the gross profit margin of the controller was 18.92%, year-on-year (yoy-2.09pct). The main reason for the decline in gross profit margin is that the supply and demand situation of the upstream electronic component market has a continuous impact on the middle and downstream industries, and the global transportation tension, price rise, exchange rate fluctuation, energy conservation and power restriction and other factors have also had a phased impact on the company. The company makes pricing in the mode of cost plus, and the price will be transmitted gradually. However, due to the time difference and lag in the transmission process, it has a certain impact on the gross profit in the short term. With the company gradually transferring the cost pressure to the downstream, the public gross profit margin has stabilized and rebounded obviously. Among them, the comprehensive gross profit margin in 2021q4 is 22.91% (yoy-0.18pct), which is basically the same as that in 20 years. Meanwhile, in 2021, the company’s sales / management / Finance / R & D expense ratio decreased by 0.02pct/0.81pct/1.05pct/0.29pct year-on-year, and the annual net interest rate was 10.37% (YoY + 1.36pct). The optimization of management efficiency also led to the improvement of profitability.
The traditional business has been steadily improved and the automobile business has grown rapidly: the company’s businesses have been steadily improved in the 21st year. Among them, the growth of home appliances and electric tools related businesses comes from the expansion of downstream customers and the continuous penetration of the trend of intelligent and professional division of labor. In terms of automotive business, the company has formed strategic partnerships with global well-known auto electronic parts manufacturers such as BorgWarner and nedco, and has obtained a number of platform level projects. The terminal brands include BMW, Mercedes Benz, Audi, Geely, Volkswagen and other vehicle manufacturers. The company has also established project cooperation with other global Tier1 such as Haila, Stanley, Marelli and Valeo. In China, 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. At present, the company has laid out six production lines in the field of automotive electronics, which are distributed in the production bases in Shenzhen, Hangzhou, Vietnam and Romania. It is expected to meet the production and delivery in the next 2-3 years, and the relevant business is about to break out.
The energy storage business continues to be laid out, and the prospect is promising: relying on the technical foundation of the controller industry for many years, the company has carried out technical reserves and industrial layout for the energy storage industry. At present, the company has completed the technical development and mass production of some projects in the field of energy storage. At the technical level, the company’s energy storage products integrate the experience and control theory of automotive electronics and high voltage and high current products, and continue to carry out technical upgrading. At present, a relatively complete third-generation assembly scheme has been formed, and a multi power section series product platform has been established. At the business level, the company has been cooperating with many customers, mainly involving the part of energy storage control.
The spin off of Chengchang technology is progressing smoothly. Chengchang technology has submitted the application materials for IPO and listing on the main board of Shenzhen Stock Exchange to the CSRC, which was accepted by the CSRC on June 28, 2021. With clear market positioning, profound technology accumulation and advanced product level, Chengchang technology is a major enterprise engaged in the development of phased array T / R chips in China and a typical representative of the innovation chain of microwave and millimeter wave RF integrated circuits. In 2021, the company’s revenue of microwave and millimeter wave analog phased array t / R chips was 211 million yuan (YoY + 30.25%). The spin off and listing of Chengchang technology will help Chengchang technology make use of the strength of the capital market, continue to increase R & D investment, improve the core competitiveness of technology, and obtain more high-quality projects and orders; At the same time, accelerate the progress of 5g millimeter wave communication and satellite Internet application, and realize mass production.
Profit forecast and investment suggestions: the company is in a steady rising stage in the field of household appliances and electric tool controllers, and the performance of automotive electronic controllers and energy storage and temperature control products is about to break out. At the same time, the price rise and shortage of global chips and raw materials in 2022 may alleviate the margin and improve the company’s profit margin. Therefore, it is estimated that the operating revenue of the company from 2022 to 2024 will be RMB 7.845/10.291/13.477 billion respectively; The net profit was 743 / 1088 / 1314 million yuan, corresponding to the closing price of PE on February 23, which was 29 / 21 / 16 times respectively, maintaining the “overweight” rating.
Risk factors: intensified industry competition, price fluctuation of upstream raw materials and destocking cycle of downstream customers.
