\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 933 Ikd Co.Ltd(600933) )
[matters]
The company released its annual report for 2021: in 2021, it realized an operating revenue of 3.206 billion yuan, a year-on-year increase of 23.75%; The net profit attributable to the parent company was 310 million yuan, a year-on-year decrease of 27.24%; The net profit deducted from non parent company was 235 million yuan, a year-on-year decrease of 34.86%. Among them, 2021q4 achieved an operating revenue of 854 million yuan, a year-on-year increase of 0.76% and a month on month increase of 9.40%; The net profit attributable to the parent company was 31 million yuan, down 82.07% year-on-year and 61.56% month on month; The net profit deducted from non parent company was 15 million yuan, down 90.28% year-on-year and 78.26% month on month.
[comments]
Affected by many factors such as raw materials and exchange losses, the company’s profit in 2021 is under pressure. The company’s operating revenue in 2021 was 3.206 billion yuan, with a year-on-year increase of 23.75%, of which the new energy vehicle business is expected to contribute 70% of the new sales revenue, becoming an important support point for growth. The net profit attributable to the parent company in 2021 was 310 million yuan, a year-on-year decrease of 27.24%, which was mainly caused by the rise in the price of raw materials, the rise in the price of sea freight and exchange losses. The gross profit margin of the company’s sales in 2021 was 26.3%, a year-on-year decrease of 4.0pct; During the period, the three fee rate was 17.3%, with a year-on-year increase of 4.1pct, mainly due to the increase of 3.7pct in financial expense rate caused by exchange loss. The company’s overseas revenue accounted for more than 60%. Under the background that the RMB exchange rate in 2021q4 reached the high point of the year, the net profit attributable to the parent company in 2021q4 was only 31 million yuan, down 82.07% and 61.56% respectively on a month on month basis.
China is a leading supplier of automotive aluminum alloy precision die castings, and the new energy business is growing rapidly. The company is mainly engaged in the R & D, production and sales of automotive aluminum alloy precision die castings. In the past, its products were mainly small and medium-sized aluminum alloy die castings in engine system, steering system, power system and wiper system. Under the trend of lightweight driven by new energy vehicles, the company actively expands automobile structural parts and new energy products. In terms of new energy business, the company focuses on thermal management system, three electricity system and vision system. In 2021, the operating revenue increased by about 180% year-on-year. Terminal products have been used in new forces such as canoo, Weilai, ideal and Zero run. According to the company’s strategic transformation and upgrading objectives, strive to account for more than 30% of the revenue of new energy vehicle products by 2025 and 70% by 2030. At present, the company’s new energy vehicle business revenue accounts for only more than 7%. We believe that the company’s new energy business will continue to grow rapidly in the future. At the same time, on the latest integrated die-casting track, the company has reserved 1250t, 1650T, 2200t, 2800t, 4400t and other die-casting machines of various specifications and models, and plans to import 6100t / 8400t large-scale die-casting machines and establish a large tonnage die-casting technical team, which is expected to seize the first mover advantage in the early stage of industry development.
[investment suggestions]
As a leading professional supplier of automotive aluminum alloy precision die castings in China, the company has vigorously expanded its new energy business while maintaining the steady growth of GM small and medium-sized parts. Among them, new energy vehicle thermal management system, new energy vehicle three electricity system, new energy vehicle vision system and other businesses have achieved rapid growth in 2021, and are expected to continue to maintain a high growth trend in the future. It is estimated that the operating revenue of the company from 2022 to 2024 will be RMB 4.048/49.21/5.835 billion respectively, the net profit attributable to the parent company will be RMB 507650/785 million respectively, the corresponding EPS will be RMB 0.59/0.75/0.91/share respectively, and the corresponding PE will be 22.08/17.22/14.26 times respectively. Considering that the new energy business of the company is in the fast lane of growth, the company is rated as “overweight”.
[risk tips]
The demand of downstream customers is less than expected;
The business expansion of new energy is less than expected;
Raw material price fluctuation risk.
