\u3000\u3 Shengda Resources Co.Ltd(000603) 358 Huada Automotive Technology Corp.Ltd(603358) )
Event:
The company released the performance express of 2021, and achieved an operating revenue of 4.724 billion yuan in the whole year, with a year-on-year increase of 14.28%; The net profit attributable to the parent company was 361 million yuan, a year-on-year increase of 57.36%; The net profit deducted from non parent company was 301 million yuan, with a year-on-year increase of 40.72%.
Key points of the report:
The automobile industry has gradually recovered, and the traditional stamping business has grown steadily
Under the influence of factors such as lack of core, Sino US trade war and covid-19 epidemic, the overall environment of the automobile market is poor, and the sales volume of the company's main cooperative customers (joint venture brands) of stamping parts is impacted to a certain extent. At the same time, the company continues to develop new energy customers. The increment brought by high-quality new energy vehicle enterprises such as Xiaopeng and Tesla makes the company's stamping business achieve steady growth. With the gradual easing of core shortage and the stabilization and gradual decline of raw material prices, we expect the company's stamping business to rebound.
The battery box business continued to grow in volume, and Hengyi's profit margin gradually increased
Since its acquisition in 2018, Jiangsu Hengyi has achieved rapid growth. At present, its downstream customers cover weixiaoli, Contemporary Amperex Technology Co.Limited(300750) , SAIC times, etc. Recently, Hengyi introduced chendao new energy, a wholly-owned subsidiary of Contemporary Amperex Technology Co.Limited(300750) as its strategic investor to further strengthen the cooperation between the company and Contemporary Amperex Technology Co.Limited(300750) in the field of battery box, so as to lay a foundation for the company to continue to expand the field of new energy vehicles in the future. According to the company's plan, the production capacity of Hengyi battery tray will reach 1.2 million sets by the end of 2022 and 2 million sets by the end of 2023. At present, the production capacity is still in the stage of expansion and climbing, and the utilization rate is low, which lowers Hengyi's profit margin. With the subsequent production capacity reaching production capacity one after another, Hengyi's profit margin level will gradually increase.
Low pressure die casting will be put into operation before the end of the year to further improve profitability
The company has carried out in-depth cooperation with Hangda new materials, and will make full use of Beihang's technical advantages in the field of lightweight and continue to promote the R & D and implementation of integrated die-casting technology. Combined with the company's deep technical reserves in the field of stamping and welding, it is expected to become the leader of global aluminum alloy lightweight parts in the future and fully enjoy the dividends of the development of new energy vehicles. The company's low-pressure die casting is expected to be put into operation before, which will enable the company to reduce costs at the raw material end and further enhance its profitability.
Investment advice and profit forecast
Huada Automotive Technology Corp.Ltd(603358) is the leader in the field of automotive stamping parts in China. Its stamping parts business will benefit from the recovery of the whole automotive industry, and its new energy battery box business is expected to fully enjoy the huge development space brought by market expansion and open the second growth curve of the company. From 2021 to 2023, we expect the net profit attributable to the parent company to be RMB 361 / 480 / 679 million respectively, the corresponding EPS of the current stock price to be 0.82/1.09/1.55 respectively, and the corresponding PE to be 24.9/18.7/13.2 times respectively, maintaining the "overweight" rating.
Risk tips
The price of raw materials rose, the production capacity was lower than expected, and the prosperity of the industry decreased.
