Q4 turned losses into profits, with revenue exceeding 10 billion in a single quarter, an obvious increase and abundant cash reserves
The total Q4 revenue of the company reached a record high of 10.62 billion yuan, a year-on-year increase of 156.1% and a month on month increase of 36.6%, mainly due to the improvement of delivery volume. In 2021, the company achieved a revenue of 27.01 billion yuan, delivered 90491 vehicles, a record high, and the company’s cash reserve reached 50.16 billion yuan.
The company’s overall gross profit margin in Q4 reached 22.4%, slightly lower than that in Q3 of 23.3%. We believe that it is mainly due to the impact of the increase in raw material costs and chip costs. In the future, if the chip supply eases and the price of bulk raw materials decreases, the company’s gross profit margin is expected to recover. In 2021, the company’s Q4 operating cash flow was 3.84 billion yuan, an increase of 76.8% over Q3, and the free cash flow was 1.62 billion yuan. We think the company’s cash flow is good, which also shows the company’s ability to control the whole supply chain and terminal stores. At the same time, on the premise of significantly increasing R & D investment and accelerating the expansion of sales network, Q4 still achieved profitability, which we believe fully reflects the efficient operation efficiency of ideal vehicles.
The new ideal one has been affirmed by the market, and the delivery volume has reached new highs. The ideal X01 is worth looking forward to
The company delivered 35221 vehicles in Q4 in 2021, which is higher than the delivery of 25116 vehicles in Q3, exceeding the original expectation. Ideal one has delivered tens of thousands of luxury models for three consecutive months since November 2021, setting a new record for the delivery of luxury models of Chinese brands with more than 300000 yuan. In addition, the company plans to launch a full-size high-end add-on SUV in Q2 2021, the ideal X01 model. According to the company, the ideal X01 will improve the sensor capability, safety redundancy and other dimensions, and improve the vehicle safety to a higher level. At the same time, the company also plans to release two pure electric models supporting super fast charging in 2023. We believe that the company’s increasingly rich product line and accurate product definition ability will provide more choices for car owners and enhance the company’s market competitiveness.
As of January 31, 2022, the company has 220 retail centers covering 105 cities, and operates 276 after-sales maintenance centers and authorized body and paint centers in 204 cities. Compared with 52 stores in 41 cities at the end of 2020, the company expects to continue to grow this year, with a target of 400 sales and service stores. We believe that the expansion of the company’s sales network is significant, and the expansion of stores is expected to continue to drive the improvement of the company’s vehicle delivery and provide support for the company’s revenue growth.
Expand the production capacity of Changzhou factory and build new production bases in Beijing and Chongqing. The company has begun to layout the future production capacity. The company has newly expanded the production capacity of Changzhou factory and is building a new production base in Beijing. After the completion of the expansion and new construction projects, the production capacity of the two plants will reach the level of 500000 vehicles per year in 2023.
At the same time, the company also signed a strategic cooperation framework agreement with Chongqing municipal government to build a new production base.
We believe that the expansion of new production capacity shows the company’s confidence in future development, and the production capacity of different factories will also provide a strong guarantee for the subsequent diversification of the company’s products.
The delivery volume of the company is expected to increase year-on-year, and the high-speed development can be expected in the future
According to the company’s performance outlook, the company expects to deliver 3 Shenzhen Sed Industry Co.Ltd(000032) 000 units in the first quarter of 2022. We believe that this delivery is expected to be lower than that in 2021q4, mainly due to the influence of the Spring Festival. We believe that the ideal one faces not only potential buyers of pure electric vehicles, but also potential buyers of fuel vehicles. It faces a large market. At present, the company has abundant orders on hand. If the supply chain such as chips and power batteries can support it, there is a certain probability that the company’s delivery volume can exceed this estimated value.
Risk tip: the company’s new car delivery is less than expected, the penetration growth of new energy vehicles is less than expected, the supply of chips, power batteries and other parts is unstable, the epidemic affects vehicle sales, the launch of new products is less than expected, and the performance forecast are the preliminary calculation results. Please refer to the annual report.
