\u3000\u3 China Vanke Co.Ltd(000002) 050 Zhejiang Sanhua Intelligent Controls Co.Ltd(002050) )
Performance summary: the company released the annual report of 2021. During the reporting period, the company achieved a revenue of 16.02 billion yuan, a year-on-year increase of 32.3%; The net profit attributable to the parent company was 1.68 billion yuan, a year-on-year increase of 15.2%; The net profit attributable to the parent company after non deduction was 1.49 billion yuan, a year-on-year increase of 17.1%. In a single quarter, Q4 achieved a revenue of 4.3 billion yuan in a single quarter, a year-on-year increase of 22.3%; The net profit attributable to the parent company was 390 million yuan, a year-on-year increase of 5.7%; The net profit attributable to the parent company after non deduction was 320 million yuan, a year-on-year increase of 2.4%.
The new energy market is highly prosperous, and the volume of automobile zero business is growing. According to the data of China Automobile Association, the global sales of new energy vehicles exceeded 6 million units in 2021, with a year-on-year increase of more than 90%. As the leader of new energy heat management, the company fully enjoyed the dividend of industry growth. In 2021, the company’s auto zero business revenue increased by 94.5% to 4.8 billion yuan year-on-year, and the net profit attributable to the parent increased by 74.8% to 580 million yuan year-on-year. The company’s new energy vehicle thermal management business revenue has reached 4 billion yuan, accounting for 83.4% of the total auto zero business revenue. According to the data of China Academy of communications and communications, the penetration rate of Shanxi Guoxin Energy Corporation Limited(600617) automobile market reached 19.2% in mid February of 22 years, a record high. We expect that the new energy vehicle market is expected to maintain a high boom in 2022, and the company’s auto zero business is expected to continue to increase.
The refrigeration sector grew steadily and its profitability was under pressure. In 2021, the revenue of refrigeration, air conditioning and electrical parts business of the company increased by 16.4% year-on-year to RMB 11.22 billion, an increase of 16.4% compared with the same period in 2019 and a compound growth rate of 7.9% in two years; The net profit attributable to the parent company of refrigeration, air conditioning and electrical parts business decreased by 5.6% year-on-year to 1.1 billion yuan. We analyzed that the reason for the decline in net profit attributable to the parent company was the sharp rise in the price of raw materials and the sharp fluctuation of exchange rate.
Gross profit margin fell and is expected to recover in 22 years. During the reporting period, the company’s comprehensive gross profit margin was 25.7%, a year-on-year decrease of 4.1pp, of which Q4 gross profit margin was 21.6%, a year-on-year decrease of 11.9pp and a month on month decrease of 5.8pp. We believe that the reasons for the sharp decline in gross profit margin are: 1) the sharp rise in raw materials leads to an increase in costs; 2) The proportion of the company’s auto zero business continues to increase, while the gross profit margin of the company’s auto zero business is lower than that of the refrigeration business, and the increase of the proportion of integrated products further reduces the gross profit margin of the company’s auto zero business; 3) The RMB continued to appreciate, while the company’s overseas business revenue accounted for 49.4%, and its profitability was affected. In terms of expense rate, the company’s sales expense rate / management expense rate / financial expense rate in 21 years decreased by 2.2pp/0.8pp/0.5pp to 2.8% / 5.5% / 0.5% year-on-year. According to the company’s previously disclosed operation from January to February 2022, the profitability of the company improved from January to February, and the net profit attributable to the parent increased by 0.3pp to 9.4% compared with 21q4. We believe that the profitability of the company is expected to continue to recover in 22 years.
Profit forecast and investment suggestions. It is estimated that the EPS from 2022 to 2024 will be 0.68/0.84/1.02 yuan respectively. Considering the high prosperity of the new energy market, the company, as the leader of new energy heat management, will fully benefit and maintain the “buy” rating.
Risk tip: the price of raw materials may fluctuate sharply, and the prosperity of new energy vehicles is less than expected
