\u3000\u3 Guocheng Mining Co.Ltd(000688) 162 Jee Technology Co.Ltd(688162) )
Event: Recently, the company released the performance express for 2021. In 2021, the company achieved an operating revenue of 2181008 million yuan, a year-on-year increase of 41.75%; The net profit attributable to the owners of the parent company was 138996400 yuan, a year-on-year increase of 8.37%; The comments are as follows:
The increase in raw material prices and R & D investment caused the company’s performance in 2021 to be lower than expected. The company’s business consists of two sectors, intelligent equipment business and electric drive business. Among them, the electric drive business is greatly affected by upstream raw materials (chips, etc.). At the same time, the business products are in the process of iterative upgrading and in the R & D investment period. The company’s electric drive business failed to achieve profitability in 2021. In 2021, the company continued to increase R & D investment. In 2021, the R & D cost was 167 million yuan, an increase of 32 million yuan over the previous year, a year-on-year increase of 23.76%. We believe that the company’s core business benefits from the development trend of new energy vehicle industry and is in the period of business expansion. The company actively expands investment in manpower and capital, which is in line with the development trend of emerging industries. With the weakening of the impact of the epidemic, the supply of upstream raw materials such as chips is expected to ease. With the release of the company’s business orders, the impact on the cost side is weakened, and the company’s performance is expected to improve.
Sufficient orders and long-term development. According to the performance express, the company’s intelligent equipment business continued to improve, benefiting from the rapidly increasing capacity demand of new energy vehicles, power batteries, motors and electronic controls. By 2021, the company had added 2.989 billion yuan of equipment orders in this business. The production and acceptance cycle of the company’s intelligent equipment business is long, and the orders on hand are the guarantee for future development. The electric drive business resumed rapid growth in 2021, and 81900 sets of products were delivered in 2021 (excluding 35700 sets delivered by the joint venture Hefei Daoyi Power Technology Co., Ltd.), with a year-on-year increase of 202.27%. We believe that the two core businesses of the company benefit from the long-term development trend of new energy vehicles. The company has a leading edge in the field of intelligent equipment, especially in the field of lightweight body intelligent connection production line. New energy vehicles are particularly popular for lightweight body, and the company’s business related to new energy vehicles and new forces in vehicle manufacturing is growing rapidly; The company has strong competitiveness in electric drive system, electronic control system and other fields. The company actively distributes two fields and seeks long-term development.
Profit forecast and investment rating of the company: affected by the increase of raw materials and R & D investment, the company’s performance in 2021 is lower than expected, but the company’s business will continue to benefit from the development of Xinneng automobile industry. We are optimistic about the medium and long-term development trend of the company. At the same time, we adjust the predicted values of the company’s net profit attributable to the parent company from 2021 to 2023 to 139, 317 and 477 million yuan (the previous values were 212, 311 and 471 million yuan), The corresponding EPS is 1.02, 2.31 and 3.48 yuan respectively. The current share price corresponds to the PE values of 66, 29 and 19 times from 2021 to 2023 respectively, maintaining the “recommended” rating.
Risk warning: the sales volume of passenger cars is lower than expected; The development of new energy vehicles is less than expected; The expansion of the company’s new products was less than expected.
