\u3000\u3 Guocheng Mining Co.Ltd(000688) 667 Wuhan Lincontrol Automotive Electronics Co.Ltd(688667) )
In 2021, the company’s revenue increased by 9.5% to 835 million yuan, and the net profit attributable to the parent decreased by 12.3% to 138 million yuan
The company released the performance express in 2021, and the revenue in 2021 was 835 million yuan, a year-on-year increase of + 9.5%; The net profit attributable to the parent company was 138 million yuan, a year-on-year increase of – 12.3%. The revenue of 2021q4 company was 236 million yuan, with a year-on-year increase of – 5.3% and a month on month increase of + 36.0%; The net profit attributable to the parent company was 16.53 million yuan, with a year-on-year increase of – 69.1% and a month on month increase of – 60.6%. In 2021, the company overcame the impact of the shortage of chips and the decline in the overall sales of commercial vehicles in the second half of the year, and its revenue maintained a growth trend. The decline in profit was mainly due to the provision of equity incentive expenses of 22.06 million yuan at the end of the period and the increase of R & D expenses of 35.19 million yuan compared with 2020. The company has strong scarcity in the field of automotive EMS, and its products have gradually expanded from commercial vehicles to the market of hybrid passenger vehicles. There is a broad space for domestic substitution and a clear growth path. We raised the company’s profit forecast. It is estimated that the revenue in 20222023 will be 1.225 (+ 0.15) / 1.636 (+ 0.22) billion yuan respectively, the net profit attributable to the parent company will be 2.67 (+ 0.17) / 382 (+ 0.21) million yuan respectively, and the EPS will be 5.17 (+ 0.32) / 7.40 (+ 0.40) yuan / share. The current stock price corresponds to 24.7/17.2 times of PE in 20222023, maintaining the “buy” rating.
Revenue growth is better than that of the downstream commercial vehicle industry, which is expected to open the domestic alternative space for passenger vehicle EMS
The company’s gasoline EMS products account for a high proportion of revenue (90% in 2020), and the downstream is mainly light trucks. In 2021q4, the sales volume of light trucks in China was 482000, with a year-on-year increase of – 19.9% and a month on month increase of + 14.5%. The company’s 2021q4 revenue was – 5.3% year-on-year and + 36.0% month on month. The growth rate was better than the industry performance, reflecting the company’s share growth in the light truck EMS Market and the gradual contribution of the increment of other models. At present, the company’s products applied to commercial vehicles are mainly inlet injection EMS. The company focuses on the development of in cylinder direct injection EMS applied to passenger cars. The models have entered the three high calibration stage, and it is expected to gradually realize domestic substitution in the mainstream passenger car market in the future.
Develop the hybrid EMS Market and improve the layout of electric control products for pure electric vehicles
The company has achieved mass production of hybrid electric control products. In 2021, there will be more fixed-point automobile enterprises. In 2022, the hybrid EMS business is expected to usher in rapid growth. In terms of electric control products of pure electric vehicles, in January 2022, the company joined hands with Chongqing Maojie to establish a joint venture to carry out the business of powertrain control system of pure electric commercial vehicles and increase the product layout in the field of pure electric vehicles.
Risk tips: the mitigation of core shortage is less than expected, the sales volume of commercial vehicles is declining, and the progress of customer development is less than expected.
