\u3000\u3 China Vanke Co.Ltd(000002) 050 Zhejiang Sanhua Intelligent Controls Co.Ltd(002050) )
Events
The company released the performance express of 2021 and the operating data from January to February of 2022. In 2021, the company realized a revenue of 15.97 billion (+ 31.9%) and a net profit attributable to the parent company of 1.682 billion (+ 15%), including Q4 revenue of about 4.25 billion (+ 21%) and a net profit attributable to the parent company of 389 million (+ 5.1%); From January to February 2022, the company realized a revenue of 3.06 billion (+ 40%) and a net profit attributable to the parent company of 290 million (+ 30%).
Brief comment
The performance in 2021 is in line with the expectation, and the new energy heat management contributes to the performance increment
The automobile thermal management business has achieved high growth. It is expected to achieve revenue of about 5 billion (+ 102.5%), contribute net profit of about 550 million (+ 65.7%), and the revenue of refrigeration, air conditioning and electrical parts (non steam parts) business is about 11 billion (+ 13.8%), contribute net profit of 1.13 billion (+ 0.1%). The decline in Q4 performance growth was mainly due to: (1) the rise in the price of raw materials and export freight and the appreciation of RMB exchange rate, which dragged down profitability; (2) The traditional refrigeration and air conditioning electrical parts business was constrained by the weak consumer demand in the downstream home air conditioning and other markets, and Q4 revenue fell slightly.
From January to February 2022, the growth rate of performance was upward, and the demand of traditional business customers exceeded expectations
The increase in revenue growth is mainly due to: (1) the supporting share of non Gree customers in the traditional refrigeration, air conditioning and electrical parts business may increase significantly, resulting in the boost of current demand and the booming production and sales of the industry in the off-season; (2) The downstream demand for new energy heat management increased rapidly. The output of Shanxi Guoxin Energy Corporation Limited(600617) vehicles from January to February was + 169% year-on-year, of which the output of Tesla China was + 155% year-on-year.
The leading valuation of new energy vehicle thermal management is at an all-time low, maintaining the buy rating
We expect that the company’s revenue of traditional refrigeration, air conditioning and electrical parts business will be + 20% year-on-year in 2022, and that of auto parts business will be + 60% year-on-year. In 2022, the company’s total revenue may reach 21.2 billion yuan (+ 32.5%), and the net profit attributable to the parent company will be 2.24 billion yuan (+ 33%). After this round of correction, the corresponding PE of the company is about 26 times, close to the valuation low point in recent years, Continue to be optimistic about the competitiveness and growth of the company as the leader of new energy heat management, and maintain the “buy” rating.
Risk tip: the price of raw materials has risen sharply, the industry competition has intensified, and the demand does not meet expectations.
