Matters:
Ideal automobile released the Q4 financial report of 2021 and the annual financial report of 2021. In 2021, Q4 ideal achieved a revenue of 10.62 billion yuan and a net profit of 300 million yuan; In 2021, the annual revenue was 27.01 billion yuan and the net loss was 320 million yuan.
Ping An View:
The quarterly revenue exceeded 10 billion for the first time, and the cash reserve exceeded 50 billion. Ideal car 4q21 delivered 35221 vehicles, with a year-on-year increase of 143.5%, realized a revenue of 10.62 billion yuan, with a year-on-year increase of 156.1%, and the quarterly revenue exceeded 10 billion yuan for the first time. In 2021, 90491 vehicles were delivered, with a year-on-year increase of 177.4%. The annual revenue was RMB 27.01 billion, with a year-on-year increase of 185.6%. The ideal gross profit margin of 4q21 automobile sales reached 22.3%, with a month on month increase of 5.2/1.2 percentage points respectively. By the end of 2021, the ideal cash reserve had reached 50.16 billion yuan. The ideal 1q22 delivery guideline is 30000 to 32000 units, and the corresponding revenue is expected to be 8.84 ~ 9.43 billion yuan.
Outstanding operating efficiency, ideal fourth quarter net profit of 300 million yuan. In the fourth quarter of 2021, the ideal R & D expenditure reached 1.23 billion yuan, a year-on-year increase of 228.7%. In 2021, the annual R & D expenditure reached 3.29 billion yuan, a year-on-year increase of 198.8%. In terms of sales service network, by the end of 2021, there were 206 ideal retail centers, with a year-on-year increase of 296.2%, covering 102 cities. 4q21 with the increase of R & D expenses and the continuous expansion of sales network, the ideal car still achieved a net profit of 300 million in the fourth quarter, reflecting the ideal outstanding operating efficiency and excellent cost control ability. In 2021, ideal automobile lost 320 million yuan, an increase of 111.9% year-on-year, mainly due to the increased R & D expenses and the continuous expansion of sales and service network. In 2022, ideal will continue to increase R & D investment and service network. In addition, ideal will reach a cooperation agreement with Chongqing Municipal government, and the third manufacturing base in Chongqing will be located in Chongqing.
Focus on the household user market with more than 200000 yuan, and the target market share will reach 20%. In 2021, the ideal car will complete the leap from 0 to 1, and then from 1 to 10. The ideal car will continue to give full play to its advantages and strengthen the product definition ability to meet the needs of family users. In 2022, a new full-size SUV ideal X01 will be launched, which is positioned higher than the ideal one. From 2023, a pure electric vehicle based on high-voltage pure electric platform will be launched, Ideal will focus on the household user market of more than 200000 yuan. According to ideal automobile, the market scale of more than 200000 household users will reach about 10 million units in 2025, and the ideal target market share will reach 20%.
The self-study ability of the whole stack of ideal automobile automatic driving evolves rapidly. Ideal terminated its cooperation with Mobileye at the end of 2020. The 2021 ideal one is equipped with horizon J3 series chips to gradually carry out self-research on the whole stack of automatic driving. The 2021 ideal one delivered the basic ADAS and AEB functions in June 2021, and NOA navigation assisted driving and complete AEB functions (active safety) in December. It has become the third auto enterprise in the world with complete NOA and AEB full stack self-research capability, before Tesla and Xiaopeng. By the end of 2021, the activation and use of ideal NOA navigation assisted driving has exceeded 60000 units, exceeding the sum of navigation assisted driving of other brands in the Chinese market (the number of ideal one is relatively high, and it is pushed to users free of charge).
Investment suggestion: in 2022, auto enterprises will also start the competition for brand and intelligence, and the new forces of head car making will enter a rapid growth period. The high-end intelligent new car products of many auto enterprises will be launched successively at the end of the first quarter. Equipped with high-power chips, heavy intelligent new cars and high-level auxiliary driving functions will usher in market inspection. We are optimistic about auto enterprises with successful brand building, strong intelligent self-research ability and rapid function implementation. We strongly recommend Great Wall Motor Company Limited(601633) (2333. HK), Geely Automobile (0175. HK), Xiaopeng automobile (9868. HK), Saic Motor Corporation Limited(600104) , and pay attention to the development trend of Weilai automobile and ideal automobile.
Risk tips: 1) the shortage of core parts and the rise of raw material prices affect the company's performance; 2) At present, the scale of new forces is limited, the source of profit is single, and the state of high investment will continue, and the fundamentals of the company may deteriorate; 3) Market competition intensifies, and the sales volume of newly launched models is lower than expected.
