\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 799 Changzhou Xingyu Automotive Lighting Systems Co.Ltd(601799) )
Event: the company released its 2021 annual report, and achieved an operating revenue of 7.91 billion during the reporting period, a year-on-year increase of + 8.01%; The net profit attributable to shareholders of listed companies was 949 million, a year-on-year increase of – 18.12%; Operating cash flow was 520 million, a year-on-year increase of – 72.3%. Q4 achieved a revenue of 2.25 billion, a year-on-year increase of – 12.55% and a month on month increase of + 31.87%. Q4 realized a net profit attributable to the parent company of 210 million, with a year-on-year increase of – 53.39% and a month on month increase of + 24.87%.
1. The industry as a whole is under pressure, and the company’s competition pattern has quietly changed: during the reporting period, the company’s operating revenue reached 7.9 billion, a year-on-year increase of + 8.01%. In 2021, the industry was under pressure due to the lack of core, the rise of raw materials and the epidemic situation, but the company’s comprehensive revenue achieved positive growth and performed well. The annual revenue of auto parts was 7.089 billion, a year-on-year increase of + 3.19%, of which the revenue of lamps was 7.048 billion, a year-on-year increase of + 2.81%; The revenue of triangle warning signs was 15.34 million, a year-on-year increase of + 10.87%, and the revenue of controllers was 25.25 million. Although the industry is facing several pressures, we can see from the following details that the structural changes of the company’s internal business highlight the continuous improvement of competitiveness in a complex environment: 1) high value-added products headlights are growing rapidly. In 2021, 626w headlights were sold, with a year-on-year increase of + 16.54%. The annual sales of passenger cars were 21.48 million, with a year-on-year increase of only + 6.4%. The company’s headlamp market has reached 14.6%. 2) In 2021, the company sold 116500 controllers, with an average unit price of 216.7 yuan. New products expanded the capacity circle and further opened the growth space. 3) The company’s foreign operating income of 97.32 million indicates that the Serbian factory has just entered the climbing stage and the pace of internationalization has been started.
2. Analysis of profit margin: the company’s annual gross profit margin was 22.08%, year-on-year -5.22pct. Among them, the gross profit margin of lamp business was 22.93%, with a year-on-year increase of -3.1pct; The gross profit margin of triangle warning signs was -11.46%, with a year-on-year increase of -4.81cpt; The gross profit margin of the controller is 18.89%, and the new product has not reached the scale effect. Taking the lamp as an example, the decline in gross profit margin is mainly due to the company’s raw materials, labor and manufacturing costs + 4.46%, + 26.97% and + 21.77% year-on-year respectively. We calculate that the price of raw materials affects the gross profit margin by 0.98pct, labor costs affect the gross profit margin by about 0.93pct and manufacturing costs affect about 1.3pct. Among them, labor and manufacturing expenses have increased significantly, mainly because the capacity of the new plant has not been fully utilized, which belongs to the climbing stage. Depreciation and amortization and production efficiency have an impact on the gross profit, but it will gradually improve in the future. The net interest rate of the whole year was -833.12% year-on-year in 2021.
3. Take a reasonable view of the short-term situation and pay attention to the endogenous changes of the company: the pressure on the industry as a whole has affected the company at different stages, but the company has strengthened its competitive strength and achieved orderly expansion in the process of environmental pressure by virtue of good financial data, excellent products, R & D and service capabilities: 1) in 2021, the company undertook 62 vehicle lamp development projects, and the new projects provide a strong guarantee for future performance; 2) The new project orders undertaken in 2021 are about 13.5 billion, including high value-added products such as ADB headlamp, DLP headlamp and lamp controller. In about three months since 2022, the company has obtained about 4 billion projects. We found that when the industry is under pressure as a whole, the company continues to forge ahead and develop, which further highlights the core competitiveness of the leading enterprises. We should treat the short-term situation reasonably and pay attention to the endogenous changes of the company.
Investment strategy: we expect the company’s net profit attributable to the parent company in 22 / 23 to be 1.34/1.86 billion. At present, the stock price corresponds to 31 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.
