\u3000\u3 China Vanke Co.Ltd(000002) 138 Shenzhen Sunlord Electronics Co.Ltd(002138) )
The performance in 2021 basically met expectations and maintained the “buy” rating
In 2021, the company achieved a revenue of 4.577 billion yuan, a year-on-year increase of 31.66%, and a net profit attributable to the parent company of 785 million yuan, a year-on-year increase of 33.33%, basically in line with expectations. Due to the weak market demand for consumption and communication, we lowered the company’s profit forecast for 20222023 and added a new profit forecast for 2024. It is estimated that the net profit attributable to the parent company in 20222024 will be 926 million yuan, 1198 million yuan and 1543 million yuan (the value before 20222023 will be 1.039/1.371 billion yuan, and the increase in 2024), and EPS will be 1.15 million yuan, 1.49 million yuan and 1.91 million yuan (the value before 20222023 will be 1.29/1.70 yuan, and the increase in 2024), The current share price corresponds to 28.0, 21.6 and 16.8 times of PE. Based on the rapid growth of the company’s automotive electronics business, we are still optimistic about the company’s medium and long-term development trend and maintain the “buy” rating.
In 2021q4, the revenue and profit fell month on month, and the demand of consumption and communication market was weak
In 2021q4, the company’s revenue in a single quarter was + 7.7% year-on-year and – 5.5% month on month. The net profit attributable to the parent company was 182 million yuan, up + 0.1% year-on-year and – 5.0% month on month, deducting 130 million yuan of non net profit, down 10.9% year-on-year and – 25.6% month on month. In terms of products, the revenue of signal processing, power management, automotive electronics or energy storage products in the fourth quarter was – 6.4%, – 18.6% and – 12.3% respectively compared with the third quarter, mainly due to the weak demand in the consumer market and communication market. Ceramics, PCB and other products bucked the trend and increased by 39.5% month on month in 2021q4.
The decline in capacity utilization affected the gross profit margin in the fourth quarter, and the number of inventory turnover days increased
In 2021q4, the gross profit margin in the single quarter was 29.1%, down 6.0pcts month on month, mainly due to: (1) the decline in capacity utilization caused by the weak demand in the consumer and communication market. The turnover rate of fixed assets in the fourth quarter was 29.4%, down 4 percentage points from 33.4% in the third quarter; (2) Changes in product structure; (3) Unit price adjustment of some products; (4) Exchange rate changes and the rise of some raw materials; (5) Withdrawal of annual performance and excess awards. In the future, with the continuous improvement of capacity utilization, new market growth, key customer share and high-end component sales, the company’s gross profit margin is expected to gradually increase. The cost control in the fourth quarter was reasonable. The total cost rate of management, sales, R & D and finance in a single quarter was 15.7%, an increase of 1.4 percentage points month on month. Among them, the R & D expense rate was + 0.5pcts month on month. The inventory level rose in the fourth quarter. The inventory turnover days in 2021q4 were 120.9 days, an increase of 35.1 days compared with 85.8 days in 2020q4, and an increase of 11.0 days compared with 109.9 days in the third quarter.
Risk warning: the localization progress of components is slow; Downstream terminal demand is weak.
