\u3000\u3000 Zhejiang Founder Motor Co.Ltd(002196) (002196)
Revenue and net profit increased significantly, and the company turned loss into profit
The company’s performance forecast in 2021 turns losses into profits, and it is expected to achieve a revenue of 1.85-1.9 billion yuan, with a year-on-year increase of 62% – 66%; After deduction, the revenue was 1.72-1.77 billion yuan, a year-on-year increase of 59% – 63%; The net profit attributable to the parent company was 18-27 million yuan, with a year-on-year increase of 103% – 104%; Non net profit loss attributable to parent deduction was RMB 115-124 million, with a year-on-year increase of 81-82%; The basic earnings per share was 0.037-0.056 yuan / share, with a year-on-year increase of 103% – 104%. The company’s profit indicators improved significantly, mainly benefiting from the substantial growth of new energy vehicle drive motor business.
New energy driven motors increased by more than 250% year-on-year, and the rising cost of raw materials squeezed profits
In 2021, with the rapid development of Shanxi Guoxin Energy Corporation Limited(600617) automobile market, the company’s new energy vehicle drive motor business increased by more than 250% year-on-year. However, at the same time, due to the sharp rise in the prices of bulk commodities such as copper, aluminum and silicon steel sheets, the cost of raw materials of the company increased, which affected the growth of the company’s operating profit lower than the growth of operating revenue, and the net profit after deducting non recurring profits and losses still suffered a loss. We believe that the prosperity of the industry continues, the new drive motor production capacity is put into operation, and the profitability of the company continues to improve.
High quality customers continue to expand, and the new production capacity is expected to reach the production capacity in 2024
According to the company’s financial report, in the first half of 2021, the company shipped more than 190000 new energy drive motors, which continued to rank in the forefront of the industry and further improved the market share. The company’s mass-produced drive motors are mainly used in SAIC GM Wuling miniev, Xiaopeng P7, Geely Dihao EV and other models. The new energy vehicle drive motor developed by the company for Weiran power, SAIC passenger car and Chery automobile is progressing smoothly and is expected to be mass produced in the fourth quarter of 2021. In addition, the company has also obtained the fixed points of SAIC GM Wuling gsev project and two hybrid projects, and the development of other new customers and new projects is also progressing smoothly. By the end of 2021, the company has a driving motor capacity of 500000 sets / year, which is currently in the full production stage. In order to meet the needs of customers, the company has launched a new project with an annual output of 1 million drive motors. The project is expected to invest 500 million yuan. After the project is completed in 2024, the annual operating income is expected to increase by 2.5 billion yuan.
Risk warning: the sales volume of new energy vehicles is lower than the expected risk; Commodity prices continued to rise.
The core target of drive motor shall be rated as “overweight”
It is estimated that the EPS of 21-23 years is 0.05/0.26/0.60 yuan, and the PE corresponding to the current stock price is 249 / 46 / 20x, which is rated as “overweight”.
