\u3000\u3 Shengda Resources Co.Ltd(000603) 358 Huada Automotive Technology Corp.Ltd(603358) )
Event:
The company announced the performance express in 2021. In 2021, the company achieved a revenue of 4.72 billion yuan, a year-on-year increase of 14%; The net profit attributable to the parent company was 360 million yuan, a year-on-year increase of 57%.
The stamping business grew steadily and the battery box business developed rapidly.
The company’s main customers of stamping parts are joint venture brands such as Toyota, Honda and Volkswagen. During the reporting period, the customers related to the company’s stamping parts business were seriously affected by the lack of core, and the overall sales volume was impacted to a certain extent, which is expected to maintain a stable growth. Jiangsu Hengyi, the company’s battery and business entity, is expected to achieve rapid growth thanks to the rapid development of new energy vehicles and the large volume of downstream customers. However, in order to meet more subsequent orders, Jiangsu Hengyi’s production capacity is in the stage of rapid expansion. At present, the utilization rate of production capacity is low, resulting in the low profit rate of Hengyi in 2021. It is expected that with the improvement of the utilization rate of subsequent production capacity, the profit rate of Hengyi is expected to recover gradually.
The main business has recovered growth, and the battery box business has created the second growth curve.
We expect that with the gradual easing of chip shortage, the company’s main business is expected to achieve rapid restorative growth. The battery box business is the second growth curve created by the company. Its customers cover mainstream customers such as Contemporary Amperex Technology Co.Limited(300750) , Yutong Bus Co.Ltd(600066) and Xiaopeng automobile. At the same time, after introducing Contemporary Amperex Technology Co.Limited(300750) affiliated investment companies as strategic investors, the company will further strengthen cooperation with industry leaders Contemporary Amperex Technology Co.Limited(300750) and is expected to fully enjoy the dividends of the development of new energy vehicles. At present, in order to meet the rapidly growing orders, the company has accelerated the construction of production capacity. It is expected to achieve 1.2 million sets of production capacity by the end of 2022 and 2 million sets of production capacity by the end of 2023.
Investment advice
We expect that the company’s EPS from 2021 to 2023 will be 0.83 yuan, 1.11 yuan and 1.53 yuan respectively. Maintain the “buy” rating.
Risk tips
Macroeconomic downturn; Risks such as lower than expected mass production of new process reserves.
