\u3000\u3000 Shenzhen H&T Intelligent Control Co.Ltd(002402) (002402)
The revenue met expectations, and the expense side dragged down the performance in the fourth quarter. The annual revenue of the company was 5.986 billion yuan, a year-on-year increase of + 28.30%; The net profit attributable to the parent company was 553 million yuan, a year-on-year increase of + 39.73%; The net profit deducted from non parent company was 498 million yuan, a year-on-year increase of + 35.89%. Affected by last year’s high base, the company recorded a revenue of 1.609 billion yuan in 2021q4, a year-on-year increase of + 9.08%; In a single quarter, the net profit attributable to the parent company was 115 million yuan, a year-on-year decrease of 3.33%, which was mainly due to the increase of pre investment at the expense end, of which the R & D expenses increased by 42 million yuan quarter on quarter, a year-on-year increase of 12.09%.
The lag of cost transmission and the adjustment of revenue structure affect the gross profit margin. The company’s overall gross profit margin was 20.97%, down 1.96 PCT year-on-year. By product, the company’s gross profit margin of intelligent controller / RF chip was 18.92% / 77.00% respectively. The gross profit margin of the controller business decreased by 4.01pct compared with the same period last year. At the same time, the gross profit margin in the second half of the year was about 17.76%, down 1.06pct compared with 2021h1. The cost transmission process to the downstream lags behind. Chengchang technology achieved a revenue of 211 million yuan, a year-on-year increase of + 30.25%, and its high profitability supported the performance in the second half of the year.
Pay attention to the layout of automotive electronics industry and the rhythm of income transformation. In 2021, the company’s automotive electronic controller recorded a revenue of 164 million yuan, a year-on-year increase of 66.22%. Relying on the controller foundation, the company focuses on the direction of body domain control and thermal management control. The highlight of the annual report is that the number of global Tier1 customers establishing cooperation has increased. At the same time, substantial progress has been made in the cooperation with new forces in China such as weixiaoli, and some projects have entered the stage of trial production and mass production. In the context of the weakening improvement of traditional controller ASP, the automotive electronic business will become an important support for revenue growth and reducing the proportion of the top five customers, focusing on the production capacity of the company’s automotive electronic controller and the rhythm of revenue transformation.
Investment advice. It is estimated that from 2022 to 2024, the company will achieve revenue of RMB 7.856/97.74/11.953 billion, net profit attributable to parent company of RMB 743/9.94/1.253 billion, corresponding EPS of RMB 0.81/1.09/1.37 respectively, and current share price corresponding PE of 27 / 20 / 16 times respectively. Based on the segment valuation method, the market value of traditional controller business in 2022 is 20-22 billion yuan from the perspective of overall comparability between PEG and electronic manufacturing industry, Shenzhen H&T Intelligent Control Co.Ltd(002402) the equity market value of Chengchang technology corresponds to 3-4 billion yuan. The company’s total target market value in 2022 is 23-26 billion yuan, and the reasonable price range at the end of 2022 is 25.16-28.45 yuan. We are optimistic about the company’s leading layout in the controller field and the market potential of Chengchang technology, and maintain the “recommended” rating.
Risk tip: market expansion is less than expected, demand is less than expected, and raw materials fluctuate.
