\u3000\u3 China Vanke Co.Ltd(000002) 050 Zhejiang Sanhua Intelligent Controls Co.Ltd(002050) )
Event: the company released its 2021 annual report, and achieved an operating revenue of 16 billion yuan during the reporting period, a year-on-year increase of + 32.3%; The net profit attributable to shareholders of listed companies was 1.684 billion, a year-on-year increase of + 15.18%; Operating cash flow was 1.556 billion, a year-on-year increase of – 25.46%. Q4 achieved revenue of 4.3 billion, a year-on-year increase of + 22.3% and a month on month increase of + 6.31%. Q4 realized a net profit attributable to the parent company of 391 million, a year-on-year increase of + 5.67% and a month on month decrease of – 16.71%.
1. The automobile business continued to be realized, and the phased raw materials were under pressure: during the reporting period, the company consolidated and realized an operating revenue of 16 billion, an increase of 32.3% over the same period of the previous year; The revenue of refrigeration and air conditioning business was 11.2 billion, a year-on-year increase of + 26.46%; The revenue of automobile business was 4.8 billion, with a year-on-year increase of + 94.5%, achieving rapid growth, in line with expectations. In 2021, the net profit attributable to the parent company was 1.684 billion, an increase of 15.18% over the same period of last year. The annual gross profit margin was 25.68%, with a year-on-year increase of -4.13pct. The core reason was the increase in the cost of raw materials and transportation fees. The gross profit margin of air conditioning business was – 531.46% year-on-year; The gross profit margin of automobile business was 23.85%, with a year-on-year increase of -3.41pct; It shows that the raw material cost transmission of air conditioning business is more flexible and fast. During the reporting period, the four fees accounted for 13.49%, with a year-on-year rate of -3.15pct, and the expenses were well controlled; Among them, the R & D expenses increased by 44.9% year-on-year. The continuous investment in R & D will strengthen the building of product power, and enhance the competitiveness of enterprises in the market through continuous optimization and iteration. During the reporting period, the net interest rate attributable to the parent company was 10.51%, with a year-on-year decrease of 1.56pct. Under the negative impact of the external environment, the net interest rate remained good, which shows that the company has excellent management ability.
2. Q4 achieved the highest revenue in a single quarter: Q4 achieved revenue of 4.3 billion, 22.3% year-on-year and + 6.31% month on month, also 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 -10.9pct and a month on month decrease of -5.83pct. The core is also the influence of raw materials, which will lag in the report. Q4 realized a net profit attributable to the parent company of 391 million, with a net interest rate of 9.13%, a year-on-year increase of -1.55 PCT and a month on month increase of -2.62 PCT.
3. Automobile + refrigeration and air conditioning two wheel drive, continue to cultivate the pace of Globalization: after more than 30 years of development, the company has established an industry leading position in the field of global refrigeration appliances and automotive thermal management. The market share of the company’s air conditioning electronic expansion valve, four-way directional valve, solenoid valve microchannel heat exchanger, automotive electronic expansion valve, new energy vehicle thermal management integrated components, Omega pump and other products ranks first in the world. With the rapid penetration of new energy, the company has entered the automotive field from parts and gradually developed into components and subsystems, and has successfully developed various global auto enterprises, including Volkswagen, Mercedes Benz, BMW, Volvo, Toyota, GM, Geely, Byd Company Limited(002594) , SAIC, Weilai, Tesla and other customers. Secondly, the company’s refrigeration and air conditioning business has also achieved rapid growth. In the future, freezers and cold chain transportation, as the company’s strategic starting point, are expected to accumulate and realize domestic substitution; The market share of Omega pump products in aweco’s business ranks first in the world. With the popularization and application of high-end household appliances, this business is also expected to become a potential growth point in the future.
Investment strategy: we expect the company’s net profit attributable to the parent company to be 2.3/2.7 billion in 22 / 23 years. At present, the stock price corresponds to 26 times of the company’s dynamic Pe2 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.
