\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 933 Ikd Co.Ltd(600933) )
Event: the company released the annual report of 2021: the operating revenue was 3.21 billion yuan, a year-on-year increase of 23.7%; The net profit attributable to the parent company was 310 million yuan, a year-on-year decrease of 27.2%; Deduct non net profit of 230 million yuan, a year-on-year decrease of 34.9%.
Comments:
In 21 years, the company’s revenue growth was better than that of the industry, and the profit fell year-on-year due to the disturbance of factors such as the rise of raw materials. (1) Throughout the year, the company achieved a revenue of 3.21 billion yuan, a year-on-year increase of 23.75%. According to canalys data, affected by covid-19 epidemic and chip shortage, the total sales volume of the global automobile market increased by only 4% in 2021. The company’s revenue growth rate is better than that of the industry, mainly due to the company’s clear product positioning of “new energy vehicles + intelligent driving”, the steady increase in the market share of GM small and medium-sized parts for automobile, and the rapid growth of new energy vehicle products. (2) In the whole year, the company realized a total profit of 349 million yuan, a year-on-year decrease of 28.86%; The net profit attributable to the parent company was 310 million yuan, a year-on-year decrease of 27.24%; The gross profit margin of sales was 26.32%, with a year-on-year decrease of 4.02pct,; The net profit margin of sales volume was 10.07%, a year-on-year decrease of 6.28pct. The pressure on profitability is mainly due to the shortage of chip supply in the automotive industry in 2021, the continuous sharp rise in raw material prices, the continuous sharp rise in international shipping charges, the continuous appreciation of the RMB and other external factors.
The revenue side of 21q4 has accelerated its recovery, and the profit margin is under pressure in the short term. Q4 company achieved a revenue of 850 million yuan, an increase of 0.8% year-on-year and 9.5% month on month; Q4 company realized a net profit attributable to its parent company of 31 million, a year-on-year decrease of 82.07% and a month on month decrease of 61.73%; The gross profit margin of sales was 23.28%, with a year-on-year decrease of 2.59pct and a month on month decrease of 1.52pct.
Strategic transformation and upgrading, seize the opportunity of intelligent electric transformation in the automotive industry. (1) The company has Contemporary Amperex Technology Co.Limited(300750) , Weilai, Zero run, ideal and other high-quality customers in the field of new energy vehicles. In the whole year of 2021, the new energy vehicle project, thermal management system project and intelligent driving vision system project obtained by the company are expected to account for about 70% of the new sales revenue within the service life. (2) Based on the competitive advantages of small and medium-sized products, the company continues to increase the proportion of new energy vehicle products such as core parts and structural parts of three electricity system of new energy vehicles. According to the company’s plan, new energy vehicle products will account for more than 30% by 2025 and 70% by 2030. (3) The new factory of the company plans to import 3500t, 6100t / 8400t and other large die-casting machines this year, layout the integrated die-casting track, and comply with the development trend of the industry.
The global penetration is accelerating, and the medium and long-term performance is expected to turn upward. Under the background of global epidemic and chip supply shortage, the operating pressure of auto enterprises has increased sharply, and cost reduction may become the main tone in the next few years. The company is expected to accelerate global penetration with outstanding cost performance. The cost performance of the company’s products mainly comes from: (1) excellent management ability & Efficiency: the company deeply uses ERP, MES and other management systems to produce and supply a variety of products at the same time. (2) Excellent product quality & quality is deeply bound to global giants: the company’s business balance covers the developed regions of automobile industry in America, Europe and Asia. Its main customers are world-renowned large multinational auto parts suppliers such as Valeo, Bosch and Magna, which are expected to iron out the fluctuation cycle. The roe of the company has decreased from 26% in 16 years to 7% in 21 years; With the gradual easing of the overseas epidemic, the stabilization of raw material prices, the superposition of industrial recovery, the release of production capacity and the landing of new orders, the company’s roe is expected to achieve an upward turning point in the medium and long term.
Investment suggestion: under the general trend of intelligent electric reform in the automotive industry, the company is expected to achieve in-depth layout and strategic transformation by virtue of super customer stickiness and precise products; Under the background of the increasing demand for cost reduction of global auto enterprises, the company’s global penetration and substitution are expected to accelerate. Considering that the high price of raw materials has a negative impact on the company’s gross profit margin, we reduced the company’s net profit attributable to the parent company for 22-23 years from 630 million and 730 million yuan to 380 million and 520 million yuan, corresponding to 30 and 22 times of PE respectively, maintaining the “buy” rating.
Risk tip: the demand for automobiles is lower than expected, the price of raw materials continues to rise, and the company’s new business development is lower than expected.
