\u3000\u3 Shengda Resources Co.Ltd(000603) 305 Ningbo Xusheng Auto Technology Co.Ltd(603305) )
Event: the company released its 2021 annual report, and achieved an operating revenue of 3 billion yuan during the reporting period, a year-on-year increase of + 85.77%; The net profit attributable to shareholders of listed companies was 413 million, a year-on-year increase of + 24.16%; Operating cash flow was 378 million, a year-on-year increase of – 21.9%. Q4 achieved a revenue of 1.011 billion, a year-on-year increase of + 93.52% and a month on month increase of + 26.33%. Q4 realized a net profit attributable to the parent company of 81 million, with a year-on-year increase of – 20.06% and a month on month increase of – 32.66%.
In the same period of 2015, the company achieved a high-speed consolidated revenue of 4.31 billion, an increase of 3.7% over the same period of last year, and the revenue of the company continued to increase by 3.1% over the same period of 2015; The total profit was 465 million yuan, an increase of 20.2% over the same period of last year, and the net profit attributable to shareholders of listed companies was 413 million yuan, an increase of 24.16% over the same period of last year. The company’s revenue continued to grow from 350 million in 2015 to 3 billion, realizing a six-year compound growth rate of 43%. It can be seen that the strength and customer development ability are excellent. The annual gross profit margin was 24.06%, with a year-on-year increase of -8.81pct, mainly due to the rise in the price of raw material alloy aluminum and the increase of sea freight. During the reporting period, the four fees accounted for 8.24%, with a year-on-year increase of -1.61pct. With the increase of scale effect, the cost rate was well controlled, but the R & D investment increased significantly, indicating that there were sufficient orders on hand. The net interest rate attributable to the parent company was 13.67%, with a year-on-year increase of -6.78pct.
2. Q4 was subject to periodic pressure in a single quarter without changing its long-term value: Q4 achieved a revenue of 1.011 billion, with a year-on-year increase of + 93.52% and a month on month increase of + 26.33%, which also set the highest revenue in a single quarter in the company’s history. Q4 gross profit margin was 18.3%, with a year-on-year decrease of -9.95pct and a month on month decrease of -4.93pct. The core is also the influence of raw materials, which will lag in the report. Secondly, in the fourth quarter, the fixed assets were 1.8 billion, with a significant increase year-on-year and month on month, and the asset impairment was large. Q4 credit impairment loss was 14.53 million, an increase on a month on month basis, mainly due to bad debt loss of accounts receivable. Q4 realized a net profit attributable to the parent company of 81 million and a net interest rate of 8.03%, with a year-on-year ratio of -11.44pct and a month on month ratio of -7.06pct, which was under pressure in stages.
3. China’s leading lightweight enterprise, with excellent track and smooth customer expansion: the company is the first Tesla supplier in China and established a cooperative relationship with it in 2013. Since then, the revenue has increased from 155 million in 2013 to 1.63 billion in 2020, with a 10 fold increase in seven years. The first half of the period mainly relies on the double overweight of good customers and good track. Since 2020, the proportion of revenue to non Tesla customers has risen to more than 50%, with a year-on-year increase of 75%; The performance increment brought by new customers has increased significantly, the diversified customer strategy has begun to appear, and Tesla‘s sustained high growth rate can be understood as “good industry + good diversified customers + good Tesla”. The three dimensions continue to drive the company’s performance upward.
4. Full orders and active layout: lightweight industry is a heavy investment industry, which will also face many uncertainties during expansion. We can see that the company has achieved high-speed capacity expansion from 170 million fixed assets in 2015 to 1.79 billion in 2021. This period is not only due to active layout and dare to invest, but also due to full orders and abundant grain and grass. At the same time, we also promoted that with the large-scale investment of leading enterprises in the industry, their manufacturing, R & D and management capabilities have been qualitatively improved, which is conducive to continuously developing large customers and forming a closed-loop effect.
Investment strategy: we expect the company’s net profit attributable to the parent company in 22 / 23 to be 725 / 1.05 billion. At present, the stock price corresponds to 22 times of the company’s dynamic PE in 2022, maintaining the company’s “buy” rating.
Risk tip: the sales volume of customers is lower than expected, and the price of raw materials continues to deteriorate.
