\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 689 Ningbo Tuopu Group Co.Ltd(601689) )
Event overview: on March 14, 2022, the company released the annual performance express of 2021. In 2021, the company realized an operating revenue of 11.438 billion yuan, a year-on-year increase of 75.68%; The net profit attributable to shareholders of listed companies was 1.045 billion yuan, a year-on-year increase of 66.39%. Meanwhile, the company announced the operation from January to February 2022. From January to February 2022, the company achieved a total operating revenue of about 2.53 billion yuan, a year-on-year increase of about 60%, and a net profit attributable to shareholders of listed companies of about 250 million yuan, a year-on-year increase of about 64%.
The revenue slightly exceeded expectations, and the volume and price of new business increased simultaneously, driving the continuous high growth of performance
In 2021, the company achieved a revenue of 11.438 billion yuan, a year-on-year increase of + 75.68%, of which 2021q4 revenue was 3.616 billion yuan, a year-on-year increase of + 64.91% and a month on month increase of + 24.41%. The total revenue in 2021 slightly exceeded our expectations. Since 2022, the company’s operation has remained stable, and the revenue from January to February increased by about 60% year-on-year. We judge that the reason for the continuous high growth of performance is that the company accelerates the platform strategy and the strong growth of intelligent electric vehicle business. In 2021, the company realized a net profit attributable to the parent company of 1.045 billion yuan, slightly lower than the lower boundary of the performance forecast (1.05-1.15 billion yuan). The main reason is that after the company’s early business expansion and a series of acquisitions, the goodwill impairment of 47 million yuan was accrued in 2021. After adding back the accrual, the actual net profit attributable to the parent company reached 1.092 billion yuan. In 2021q4, the net profit attributable to the parent company was 339 million yuan, a year-on-year increase of + 40.63% and a month on month increase of + 15.32%. Benefiting from the structural adjustment of the company’s products, the proportion of high-end products continues to increase, the capacity utilization rate caused by the industrial recovery continues to be repaired, and the company’s profitability continues to rise. From January to February 2022, the net profit attributable to the parent company maintained a high growth rate of about 64% year-on-year.
NVH core leading enterprise, “2 + 3” strategy helps the company make a smooth transition to platform
The company is the leader of NVH industry, with high-quality customer resources. Benefiting from the cycle resonance, the performance is expected to maintain steady growth. At the same time, the company actively promotes the “2 + 3” strategy and multiple advantages to escort the long-term development. The company has a huge customer base and high customer concentration. Based on high-quality customer resources, with the automotive industry entering a stagflation in the second half of the year, the opening of the replenishment cycle will drive the company’s performance and continue to maintain the growth momentum. The company actively promotes the “2 + 3” product layout and forms a leading enterprise of comprehensive auto parts with “shock absorption + sound insulation” as the fist product and forward-looking layout of lightweight chassis + thermal management system + auto electronics. In the field of automotive electronic products, the company continues to introduce intelligent driving system products, including electronic vacuum pump EVP, intelligent braking system IBS, intelligent cockpit and other core automotive electronic products. The company is the first part enterprise in China to successfully mass produce EVP. IBS products have also developed to the fourth generation, which is expected to break the technology monopoly of international giants. The automotive electronics business has strong profitability and high gross profit margin of product revenue. The company’s EVP and IBS projects are expected to reach production in May 2022, which is expected to open up new markets.
Investment suggestion: it is estimated that the company will achieve a revenue of RMB 11.329144.98/18.204 billion and a net profit attributable to the parent company of RMB 1.102/14.63/2.013 billion from 2021 to 2023. The current market value corresponds to 53 / 40 / 29 times of PE from 2021 to 2023. The company has actively laid out its auto electronics business and has now entered the harvest period. As a rare leading company of auto parts platform in China, the company is expected to enjoy a valuation premium and maintain the “recommended” rating.
Risk tips: raw material price fluctuations lead to low expectations of gross profit margin, less than expected expansion of new products, less than expected launch of new production capacity, less than expected orders from key customers, exchange rate risk, etc.
