\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 633 Great Wall Motor Company Limited(601633) )
The company released its 2021 annual report. During the reporting period, the company achieved a total operating revenue of 136405 billion yuan, a year-on-year increase of 32.04%, a net profit attributable to shareholders of listed companies of 6.726 billion yuan, a year-on-year increase of 25.43%, and a net profit attributable to shareholders of listed companies of 4.203 billion yuan, a year-on-year increase of 9.55%.
Key investment points:
The performance is in line with expectations and the single vehicle revenue is increased: in 2021, the company achieved a total operating revenue of 136405 billion yuan, a year-on-year increase of 32.04%, of which the whole vehicle sales revenue was 121307 billion yuan, a year-on-year increase of 31.30%, which is mainly due to the increase of whole vehicle sales and the improvement of brand single vehicle revenue. In 2021, the whole vehicle sales were 1.281 million, a year-on-year increase of 14.79%, the corresponding single vehicle revenue was 94700 yuan, a year-on-year increase of 14.38%, and the annual comprehensive gross profit margin was 16.16%, The year-on-year decrease of 1.05 PCT was mainly due to the inclusion of transportation expenses into costs; In terms of quarters, the total revenue in Q4 was 45.607 billion yuan, with a year-on-year / month on month increase of 10.79% / 57.96%. With the easing of chip supply, the company sold 397000 vehicles in the fourth quarter, with a significant month on month increase of 49.3%. In Q4, the net profit attributable to shareholders of listed companies was 1.781 billion yuan, with a year-on-year / month increase of – 35.82% / 25.76%, mainly due to the increase of equity incentive expenses. We expect that with the improvement of production and marketing scale brought by the easing of chip supply and the continuous promotion of the company’s high-end, the company’s profitability will be further released.
Technological innovation of the three platforms and the continuous introduction of high-profit models: the company aims at a global intelligent technology company and continues to improve the hard core strength of the “Great Wall of science and technology”. In 2021, the company invested 9.067 billion yuan in R & D, an increase of 76.1% year-on-year, accounting for 6.65% of revenue. The company expects to invest about 100 billion yuan in R & D from 2021 to 2025 to create a new business model of “product + software + service” and carry out comprehensive Complete innovation and transformation. The company will accelerate the launch of new heavy-duty models on the three technical platforms of “lemon, tank and coffee intelligence”. In 2022, it is expected to launch new high-profit models such as haver cool dog, tank 700, diamond gun and salon mecha dragon. The product structure will be further upward, thus driving the improvement of profitability.
Prediction and investment suggestions: we expect the company to achieve revenue of 171201 billion yuan, 216113 billion yuan and 266655 billion yuan from 2022 to 2024, net profits attributable to shareholders of listed companies of 8.756 billion yuan, 12.193 billion yuan and 16.132 billion yuan, EPS of 0.95 yuan, 1.32 yuan and 1.75 yuan respectively, and PE corresponding to the closing price on March 30, 2022 are 30.1 times, 21.6 times and 16.3 times respectively, maintaining the buy rating.
Risk factors: car sales are less than expected, chip supply is in short supply, and raw material prices fluctuate sharply.
