\u3000\u3 China Vanke Co.Ltd(000002) 475 Luxshare Precision Industry Co.Ltd(002475) )
Event: the company released the performance express of 2021 and the performance forecast of the first quarter of 2022. In 2021, the total operating revenue was 154106 billion yuan, yoy + 66.60%; The operating profit was 8.218 billion yuan, yoy + 0.62%; The total profit was 8.195 billion yuan, yoy + 0.72%; The net profit attributable to shareholders of listed companies was 7.072 billion yuan, yoy-2.12%. It is estimated that 22q1 will realize a net profit of 1.687-1.754 billion yuan, yoy + 25% ~ 30%.
Comments: the consolidated statement shows that the income of Likai has increased rapidly in 21 years. The new business investment of Likai + sharp correction of acoustic wearable product shipment + epidemic situation + material shortage + raw material price + unilateral rise of transportation cost + deferred impact of external adverse factors on the mass production and shipment of some products. The profit of the company has been under pressure in 21 years, and the performance of 22q1 company has grown steadily. In 2021, the total operating revenue will be 154106 billion yuan, yoy + 66.60%; The operating profit was 8.218 billion yuan, yoy + 0.62%; The total profit was 8.195 billion yuan, yoy + 0.72%; The net profit attributable to the shareholders of the listed company was 7.072 billion yuan, yoy-2.12%, and the net interest rate attributable to the parent company was 4.59%, yoy-3.51pct. Looking at 21q4 alone, the company achieved revenue of 73 billion yuan, yoy + 121.68%, operating profit of 2.713 billion yuan, yoy + 11.83%, total profit of 2.715 billion yuan, yoy + 11.84%, net profit attributable to parent company of 2.383 billion yuan, yoy-6.41%, net profit attributable to parent company of 3.26%, yoy-4.82pct, qoq-2.13pct. In the past 21 years, the company invested abroad to hold the consolidated income of Likai precision, and the business of mobile phone precision display structure module products of Likai precision’s major customers grew rapidly. However, due to large initial investment and high material cost, the profit margin was affected to a certain extent. The sharp pullback in the shipment of acoustic wearable products in 21 years affected the revenue and net profit of related businesses. In addition, factors such as epidemic situation + shortage of materials + raw material price + unilateral rise of transportation cost + deferred output of some products led to the rise of the company’s operating costs, which also had an adverse impact on the company’s performance. External adverse factors such as shortage of materials in 22q1 epidemic still exist. The company expects to realize a net profit of RMB 1.687-1.754 billion in 22q1, yoy + 25% ~ 30%, and its operation is stable.
Firmly optimistic about the company as a consumer electronics leader, the vertical integration strategy of “parts module complete machine” supply chain is continuously strengthened + the layout of automobile business is far-reaching, and fully benefits from automobile electrification and intellectualization + active production expansion:
Expand the production of automobile connecting products and seize the growth opportunity. Auto products covering wire harness and connector products will fully benefit from the market expansion brought by intelligence and electrification + the rise of Shanxi Guoxin Energy Corporation Limited(600617) auto enterprises in China is expected to give priority to supporting China’s supply chain + the company’s forward-looking layout of high-voltage, high-speed and new energy products, which has been introduced into customers of new energy brands in North America, new forces of Chinese car making and other new energy vehicle enterprises + companies actively expand the production of new energy vehicles Intelligent vehicle connection products; The group’s business collaboration + active foreign cooperation, and the long-term growth of the automobile business is sufficient. Under the dual drive of the group’s automobile business (Lisheng layout intelligent cockpit + automatic driving, Lijing innovation has the qualification of vehicle camera module) in-depth cooperation + the company’s active foreign cooperation (cooperation with Chery enabling vehicle manufacturing and cooperation with Suteng juchuang layout lidar), the company’s automobile business will meet new opportunities for development and become bigger and stronger. The 10 billion joint venture Chery + controlling shareholder acquired 20% shares of Chery, developed the vehicle ODM mode, and established a new automobile platform;
The expansion of key customer categories + the increase of share support the growth of the company’s traditional consumer electronics business, and continue to be optimistic about the company’s “parts module complete machine” supply chain vertical integration strategy. 1. Spare parts: acquire Nikai computer, improve the layout of structural parts, and fully infiltrate the layout of mechanical, optical, acoustic and electrical integration; 2. SIP: increase the gross profit margin of assembly; 3. Optics: Lijing innovated to acquire Gaowei electronics and cut into the front camera module (in vitro), so as to further enhance the optical strength of Guangbao; 4. Assembly: acquire Wistron, start iPhone assembly (in vitro), undertake the share of Taiwan manufacturers, and increase the share of Apple watch assembly.
Investment suggestion: referring to the company’s high income growth in 21 years + profit pressure, the company’s revenue in 22 / 23 years was increased from 150.6/188.7 billion yuan to 212.7/276.5 billion yuan, yoy + 38% / + 30%, and the net profit was adjusted from 116 / 145.2 to 10.5/14.9 billion yuan, yoy + 49% / + 41.1%, maintaining the “buy” rating
Risk tips: the impact of the epidemic is less than expected, the development of automobile electrification / intelligence is less than expected, domestic supporting facilities are less than expected, the release of Apple ar new products is less than expected, the increase of the company’s share is less than expected, Sino US trade friction, consumer electronics sales, ASP is less than expected, performance quick report and performance forecast are the preliminary calculation results. The specific data are subject to the financial report officially released by the company
