\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 799 Changzhou Xingyu Automotive Lighting Systems Co.Ltd(601799) )
Event:
Changzhou Xingyu Automotive Lighting Systems Co.Ltd(601799) released the annual report for 2021: during the reporting period, the company achieved an operating revenue of 7.909 billion yuan, a year-on-year increase of + 8.01%; The net profit attributable to shareholders of listed companies was 949 million yuan, a year-on-year increase of – 18.12%; The net profit attributable to the shareholders of the listed company after deducting non profits was 847 million yuan, a year-on-year increase of – 21.77%.
Key investment points:
Revenue from January to February 2022 + 25%. In Q4 of 2021, the company achieved an operating revenue of 2.251 billion yuan, a year-on-year increase of – 12.55% and a month on month increase of + 31.87%; The net profit of shareholders of listed companies was 211 million yuan, with a year-on-year increase of – 53.39% and a month on month increase of + 24.87%; The gross profit margin was 16.39%, with a year-on-year increase of -8.68pct. Throughout the year, the gross profit margin of the company was 22.08%, with a year-on-year increase of -3.92pct, mainly due to the increase of raw materials, labor costs and manufacturing costs. From January to February 2022, the company was in good operating condition, achieving a year-on-year operating revenue of about + 25% and a year-on-year net profit of about + 5% attributable to shareholders of listed companies.
Increase R & D investment and strengthen the R & D layout of cutting-edge technologies. In terms of period expense rate, the company’s sales expense rate in 2021 was 1.22%, with a year-on-year increase of + 0.25pct, mainly due to the increase of after-sales three guarantees and employee compensation in this period; The management expense rate was 2.76%, with a year-on-year increase of + 0.18pct, mainly due to the increase of employee salary; The financial expense ratio was 0.29%, with a year-on-year increase of + 0.35pct, mainly due to the increase of interest on convertible bonds in the current period; The R & D expense rate was 4.90%, with a year-on-year increase of + 0.69pct, mainly due to the company’s continuous strengthening of the development and application of new technologies. The company has set up research institutes and R & D centers in Shanghai, Wuhan and other places to actively carry out research on lamps and automotive electronics. In February 2022, the company signed a letter of intent with Huawei on intelligent vehicle light business cooperation to carry out strategic cooperation in the field from intelligent lights to intelligent vehicle light.
New orders have been added gradually in large quantities, and the product structure has been continuously optimized. In 2021, the company undertook new project orders of about 13.5 billion yuan, including ADB headlamp, DLP headlamp and lamp controller. It is expected that the project will gradually enter the batch production state by the end of 2022 and 2023, and begin to contribute revenue and profits. Moreover, from the beginning of 2022 to March 16, the company will undertake new orders of 4 billion yuan. In terms of products, the company will continue to promote the acquisition of lamp projects such as ADB headlamp, DLP headlamp and atmosphere lamp and other automotive intelligent projects, and gradually increase the proportion of high-tech and high value-added products, which is conducive to the improvement and promotion of the company’s profitability.
Continue to develop new customers and make joint efforts in Chinese and foreign markets. The company continues to strengthen business cooperation with foreign vehicle manufacturers in China and actively expand new customers. At present, the company has entered the supplier system of a number of new forces and independent brands and won projects. At present, the construction of Serbia Xingyu is smooth, and the projects from European main engine plants will enter the batch production stage from 2022. We believe that the company’s smooth development in new customers and overseas production capacity has further improved its competitiveness in the Chinese market, accelerated the penetration of the company’s products in Europe and other overseas markets, and is optimistic about the company’s medium and long-term development.
As a leading enterprise in the field of automotive lamps in China, the profit forecast and investment rating company has continuously optimized its product structure, developed rapidly in customer cooperation, and gradually increased the volume of orders at home and abroad. It is optimistic about the medium and long-term development of the company. However, due to the sharp rise in the cost of upstream raw materials in the automotive industry and the short-term pressure on the profits of parts suppliers, the profit forecast was slightly reduced. It is estimated that the company’s main business revenue from 2022 to 2024 will be 10, 12 and 14.7 billion yuan, with a year-on-year growth rate of 27%, 21% and 21%; The net profit attributable to the parent company was 1.298 billion yuan, 1.666 billion yuan and 2.132 billion yuan, with a year-on-year growth rate of 37%, 28% and 28%; EPS is 4.54, 5.83 and 7.46 yuan, and the PE valuation corresponding to the current stock price is 32, 25 and 20 times respectively, maintaining the “buy” rating.
Risk Tips 1) the price of raw materials continues to rise; 2) The sales volume of key customers is lower than expected; 3) The expansion of new customers is less than expected; 4) The penetration of high value-added products is less than expected; 5) Overseas market expansion was less than expected.
