\u3000\u3 Shengda Resources Co.Ltd(000603) 305 Ningbo Xusheng Auto Technology Co.Ltd(603305) )
Core view
The company released the 2021 annual report: the annual revenue was 3.023 billion yuan, an increase of 85.77% year-on-year, the net profit attributable to the parent was 413 million yuan, an increase of 24.16% year-on-year, and the net profit deducted from non attributable to the parent was 386 million yuan, an increase of 27.55% year-on-year. The net profit attributable to the parent company was RMB 1.193 billion, with a year-on-year increase of RMB 1.001 billion, of which the net profit attributable to the parent company was RMB 1.004 billion. The net profit deducted from non parent company was 72 million yuan, a year-on-year decrease of 17.82%.
Factors such as rising raw material prices and increasing sea freight have led to pressure on Q4 gross profit margin
The gross profit margin of 4q21 was 18.30%, down 9.95pct year-on-year; The decline was 4.93 PCT month on month, mainly due to the rise in the price of aluminum alloy, the main raw material, and the increase in sea freight. Q4 sales expense ratio was 0.87%, with a year-on-year increase of 2.23pct (4q20 sales expense ratio in the current quarter was negative due to the adjustment of accounting standards), with a month on month increase of 0.20pct; Q4 management fee rate was 2.09%, down 2.10pct year-on-year and 0.52pct month on month; Q4 R & D expense ratio was 3.79%, with a year-on-year increase of 0.90pct and a month on month decrease of 0.78pct; Q4 financial expense ratio was 1.74%, down 0.54pct year-on-year and up 2.23pct month on month.
The category expansion is smooth, and the customer structure is gradually diversified
The aluminum die casting sector of the company benefited from the continuous large volume of orders on hand, and the new projects of Great Wall DHT double motor, Mercedes Benz motor shell, lucid power system, body system, battery system and other components were successfully mass produced; The market development situation of aluminum forging products is gratifying, and several projects such as steering knuckle of new energy vehicles and valve sector of thermal management system are added for fixed-point or mass production; The market development of aluminum extrusion products is increasing. In addition to adding a number of fixed points of battery pack shell parts projects, the projects under research include anti-collision beam, threshold beam, subframe, battery pack box and other products, which are expected to become a new growth point of the company in the future. The company’s customer structure has gradually diversified, and the proportion of revenue from a single customer has gradually decreased. In 2019 / 2020 / 2021, the revenue from the top five customers accounted for 70.78% / 66.57% / 66.20% respectively, and the revenue from Tesla accounted for 53.69% / 43.49% / 39.93% respectively. In addition to Tesla, Polaris, ZF, Great Wall Motor Company Limited(601633) , Contemporary Amperex Technology Co.Limited(300750) and others have become one of the company’s important customers, further consolidating the company’s competitive position and customer resource advantages.
Investment advice
It is estimated that the EPS from 2022 to 2024 will be 1.36 yuan, 1.85 yuan and 2.51 yuan respectively. The corresponding PE is 24.5 times, 18.0 times and 13.3 times respectively, which is covered for the first time and rated as “overweight”.
Risk warning: the risk that the price of raw materials will continue to rise; Risk of high customer concentration.
