\u3000\u3 Shengda Resources Co.Ltd(000603) 179 Jiangsu Xinquan Automotive Trim Co.Ltd(603179) )
Event: the company released its 2021 annual report, with a revenue of 4.61 billion, a year-on-year increase of + 25.33%; The net profit attributable to the parent company was + 1.084 billion on a year-on-year basis. Q4 achieved a revenue of 1.349 billion, a year-on-year increase of + 20.63%; The net profit attributable to the parent company was 63.57 million, a year-on-year increase of – 28.6%.
The annual revenue increased steadily, and the product structure affected the phased profit margin. The company’s annual revenue was 4.61 billion, a year-on-year increase of + 25.33%; The gross profit margin was 21.32%, with a year-on-year increase of -1.68 PCT, mainly due to the decline of the commercial vehicle market in the second half of the year, the decrease in the proportion of high gross profit products and the impact of the rise in the price of raw materials. The annual net profit attributable to the parent company was 284 million, a year-on-year increase of + 10.21%; The net interest rate was 6.16%, with a year-on-year increase of -0.84pct. Q4 achieved a revenue of 1.349 billion, a year-on-year increase of + 20.63%; The net profit attributable to the parent company was 63.57 million, a year-on-year increase of – 28.6%. The gross profit margin in a single quarter was 20.81%, year-on-year – 2.59 PCT, month on month + 2.11 PCT, and the net profit margin was 4.71%, year-on-year -3.25 PCT, month on month -0.86 PCT. The annual sales, management, R & D and financial expense rates were 4.36%, 4.65%, 4.87% and 0.61% respectively. The four expenses were + 0.23pct year-on-year. On the whole, the product structure changed due to the lack of core, the rise in the price of raw materials and the decline of commercial vehicle market, which led to the decline of profit margin and affected the net profit attributable to the parent company. Although black swans appear frequently in the market, the company’s revenue has achieved steady growth thanks to the development of key customers.
All kinds of products have increased, and the instrument panel assembly is still the core product. By product category, instrument panel assembly, door panel assembly, column assembly and bumper assembly accounted for 70.48%, 17.18%, 2.74% and 0.89% of the company’s main business revenue in the reporting period respectively, with a year-on-year increase of 30.50%, 37.47%, 15.28% and 139.18% respectively, mainly due to the continuous volume of orders from the company’s passenger car customers and the low comparable base due to the impact of the epidemic in the same period of last year.
Overseas continued to expand, and the shareholding plan confirmed the company’s confidence in development. In 2020, the company set up a wholly-owned subsidiary in Mexico and established a production base to actively explore business in the North American market, and the pace of globalization has just begun. In 2021, the company implemented the second phase of employee stock ownership plan, with 496 employees participating in the subscription, raising a total of nearly 300 million yuan; So far, the company has purchased 5.5 million shares of the company through block trading, with a transaction amount of 198 million and an average price of 36.16 yuan, which also confirms the company’s confidence in long-term development.
Investment suggestion: the company benefits from the project release of new customers and will grow rapidly in the next few years. It is estimated that the net profit attributable to the parent company in 22-23 years will be 480 / 600 million. Corresponding to about 32 times of pe22 years.
Risk tip: the sales volume of the passenger car industry is lower than expected, the terminal discount rate is greater than expected, and the chip affects the automobile output
