\u3000\u3 Shengda Resources Co.Ltd(000603) 305 Ningbo Xusheng Auto Technology Co.Ltd(603305) )
[matters]
The company released the annual report of 2021: the operating revenue in 2021 was 3.023 billion yuan, with a year-on-year increase of 85.77%; The net profit attributable to the parent company was 413 million yuan, a year-on-year increase of 24.16%; The net profit deducted from non parent company was 386 million yuan, with a year-on-year increase of 27.55%. Among them, 2021q4 achieved an operating revenue of 1.011 billion yuan, a year-on-year increase of 93.52% and a month on month increase of 26.33%; The net profit attributable to the parent company was 81 million yuan, down 20.06% year-on-year and 32.66% month on month; The net profit of non parent company decreased by 7.2 billion yuan on a year-on-year basis, and the net profit of non parent company decreased by 3.7% on a year-on-year basis.
[comments]
In 2021, the revenue increased rapidly and the production capacity expanded rapidly. The company achieved an operating revenue of RMB 3.023 billion in 2021, with a year-on-year increase of 85.77%, mainly due to the significant increase in the demand of new energy customers led by Tesla. The net profit attributable to the parent company was 413 million yuan, a year-on-year increase of 24.16%, which was far lower than the increase of revenue, mainly due to the sharp rise in the prices of raw materials and sea freight, which squeezed the company’s profits. The gross profit margin of the company’s sales in 2021 was 24.1%, a year-on-year decrease of 8.8pct. The company has started the price transmission mechanism of raw materials in the second half of the year, and it is expected that the gross profit margin will stabilize and recover in 2022. The company invested heavily in R & D in 2021, and the annual R & D cost was 129 million yuan, a year-on-year increase of 122.41%; The R & D expense ratio was 4.28%, with a year-on-year increase of 0.74pct; There were 441 R & D personnel, a year-on-year increase of 96.00%. Meanwhile, the company expanded its production capacity rapidly. At the end of 2021, the fixed assets and construction in progress were 1.797 billion yuan and 1.261 billion yuan respectively, with a year-on-year increase of 81.86% and 43.79% respectively.
The three aluminum alloy processes of die casting, forging and extrusion work together and bind Tesla deeply at the same time. The company is mainly engaged in the R & D, production and sales of precision aluminum alloy parts. Its main products focus on the field of new energy vehicles, covering transmission, control, suspension, battery and other automotive core systems. During the reporting period, the company’s aluminum alloy products were mainly die-casting, and mass production of new parts such as great wall DHT double motor, Mercedes Benz motor shell, lucid power system, body system and battery system were added. At the same time, the company is also actively developing aluminum forging and aluminum die-casting products. The company has added multiple project fixed points or mass production of new energy vehicle steering knuckle and thermal management system valve sector on aluminum forging products, and multiple project fixed points of battery pack shell parts on aluminum extrusion products. The company first cooperated with Tesla in 2013, and now deeply binds Tesla to provide lightweight solutions for its model s / x, model 3 / Y and other models. In 2021, Tesla contributed 1.207 billion yuan to the company’s revenue, with a year-on-year increase of 70.55%, accounting for 39.93% of the company’s total revenue. With the subsequent continuous expansion of Shanghai factory capacity, it is expected to become an important support for the company’s performance growth.
[investment suggestion]
The company is a leading supplier of automotive precision aluminum alloy in China, mainly focusing on the field of new energy vehicles. The company is deeply bound to Tesla. Tesla’s revenue accounted for 39.93% of its total revenue in 2021. With the continuous expansion of Tesla’s Shanghai plant capacity, it will bring important support to the company’s performance growth. We estimate that the company’s operating revenue from 2022 to 2024 will be 4.4746097646 billion yuan respectively, the net profit attributable to the parent company will be 6.61/8.781097 billion yuan respectively, the corresponding EPS will be 1.48/1.96/2.45 yuan / share respectively, and the corresponding PE will be 23.41/17.62/14.10 times respectively, giving the company a “overweight” rating.
[risk tips]
The demand of downstream customers is less than expected;
The business expansion of new energy vehicles is less than expected;
Raw material price fluctuation risk.
