\u3000\u3000 Shenzhen H&T Intelligent Control Co.Ltd(002402) (002402)
Event:
The company released its annual report for 2021, and achieved an operating revenue of 5.986 billion yuan in 2021, with 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 net profit attributable to the parent company after deduction was 498 million yuan, with a year-on-year increase of 35.89%, and the performance was in line with expectations.
Key investment points:
The performance in the fourth quarter was in line with expectations, and the intelligent controller business grew steadily: the company achieved a revenue of 1.609 billion yuan in the fourth quarter, a year-on-year increase of 9.08% and a month-on-month increase of 5.58%; The net profit attributable to the parent company was 115 million yuan, a year-on-year decrease of 3.33% and a month on month decrease of 28.63%; The net profit attributable to the parent company after deduction was 114 million yuan, with a year-on-year increase of 32.73% and a month on month decrease of 21.38%, in line with expectations. During the reporting period, the company continued to deepen its main business of home appliance intelligent controller business, rapidly expand the market share of power tool control, and continuously explore new products and projects through the vertical penetration of existing customers, so as to continuously enhance the ability to obtain orders. In 2021, the intelligent controller sector achieved a revenue of 5.775 billion yuan, a year-on-year increase of 28.23%.
The cost side is affected by the price of raw materials, transportation and exchange rate, and the gross profit margin is under pressure: 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 also have a phased impact on enterprises. The company’s comprehensive gross profit margin in 2021 was 20.97%, down 1.96 PCT compared with 2020, of which the gross profit margin of intelligent controller of household appliances was 16.02%, down 1.33 PCT year-on-year; The gross profit margin of intelligent controller for electric tools was 24.34%, down 4.55% year-on-year. At the same time, the company has gradually digested the time difference between the rise of raw material costs and product prices. Through the transmission of prices to the downstream, the gross profit margin has improved. The comprehensive gross profit margin of 2021q4 company is 22.91%, up 2.93pct month on month, basically reaching the level of the same period in 2020. This year, with the coordination and cooperation between the company and suppliers and the improvement of upstream raw material prices, the company’s gross profit margin is expected to stabilize and recover.
The company’s production capacity continued to climb, providing an effective guarantee for future business growth: during the reporting period, with the production expansion project of China Guangming phase II, the production base in the Yangtze River Delta, the production base in Vietnam and the rapid and steady development of Italian NPE company, the company’s production capacity was further expanded. In addition, the company’s Vietnam phase II and Romania production bases are under construction, and the further improvement of production capacity also provides a strong guarantee for the company to continue to obtain orders.? With the rapid development of automotive electronic business, the performance will be realized gradually: the company’s automotive electronic intelligent controller is the key layout sector of the company’s intelligent controller business. At present, it has formed a strategic partnership 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 products mainly involve automobile radiator, coolant heater, heating coil, engine fan, door control motor Intelligent controller for automobile inverter and other directions; In addition, the company has also established project cooperation with other global Tier1 such as Haila, Stanley, Marelli and Valeo to actively develop business in the field of lamp controller and body controller. 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. In 2021, the revenue of automotive electronic intelligent controller was 164 million yuan, with a year-on-year increase of 66.22%,. At present, the company’s orders for automotive electronic controllers are about 8 billion yuan. It is expected that the automotive electronic business will usher in a large-scale period this year.
Chengchang technology is listed separately to accelerate the development of phased array T / R chip business: Chengchang technology’s microwave and millimeter wave analog phased array T / R chip products are widely used in satellite remote sensing, satellite navigation, communication and other fields. In 2021, the business achieved a revenue of 210 million yuan, a year-on-year increase of 30.25% and a gross profit margin of 77%. After the deliberation and approval of the board of directors and the general meeting of shareholders of the company, it is proposed to spin off Chengchang technology and list it on the main board of Shenzhen Stock Exchange, which was officially accepted by China Securities Regulatory Commission on June 28, 2021. 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.
Maintain the company’s “overweight” investment rating: as a leading manufacturer of intelligent controllers, the company’s profitability was under pressure in the macro environment in 2021, but the revenue scale remained stable growth. It is expected that the company’s profitability will stabilize and recover in 2022, and the automotive electronics and energy storage business has large incremental space. It is estimated that the net profit of the company from 2022 to 2024 will be RMB 767 / 1062 / 1.28 billion respectively, and the EPS will be RMB 0.84 / 1.16 / 1.4 respectively, corresponding to the current PE valuation of 28.1 / 20.3 / 16.9 times respectively, maintaining the “overweight” investment rating of the company.
Risk warning: upstream raw material price fluctuation risk; Exchange risk; The demand for household appliances is less than expected; The development of automotive electronics business is less than expected
