\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 633 Great Wall Motor Company Limited(601633) )
The company released the annual report of 2021: the annual revenue was 136405 billion yuan, an increase of 32.04% year-on-year. The net profit attributable to the parent company was 6.726 billion yuan, a year-on-year increase of 25.43%. The net profit deducted from non parent company was 4.203 billion yuan, an increase of 9.55% year-on-year. Among them, Q4 achieved a revenue of 45.607 billion yuan, a year-on-year increase of 10.79%, and a net profit attributable to the parent company of 1.781 billion yuan, a year-on-year decrease of 35.82%. The net profit deducted from non parent company was 550 million yuan, a year-on-year decrease of 71.93%.
Product structure optimization + total sales volume improvement, revenue and ASP continued to rise
The sales proportion of the company’s high-end products continued to increase, and the optimization of product structure led to the continuous rise of ASP. The ASP of Q1-Q4 company were 91800, 110000, 108000 and 115000 respectively. In 2022, Euler, wey and tank brands will be the new year of products. Harvard and pickup truck will also continue to maintain their leading positions in the market segments. With the continuous improvement of the company’s brand and the increase of the proportion of high-end products, the company’s ASP and revenue scale will continue to increase.
The gross profit margin declined slightly and the expense rate remained stable during the period
The company’s annual gross profit margin was 16.16%, with a year-on-year decrease of 1.05pct, mainly due to the inclusion of transportation expenses in costs. During the whole year, the expense rate was 9.73%, with a year-on-year decrease of 0.06pct, of which the sales expense rate was 3.81%, with a year-on-year decrease of 0.17pct. The management fee rate was 2.96%, with a year-on-year increase of 0.49pct, which was due to the increase in the number of managers and the increase in equity incentive fees. The increase in R & D expenses of new car and PCT was mainly due to a year-on-year increase of 320.3%. The financial expense ratio was – 0.33%, with a year-on-year decrease of 0.71pct, which was due to the increase of exchange income in the reporting period.
Investment advice
The company’s strong product cycle has come. China’s multi brands cover the high, medium and low-end markets of fuel and electric. In 2022, with the alleviation of chip shortage, the company will release greater performance flexibility. Due to the obvious increase in the price of raw materials, the profit forecast for 20222023 is adjusted from 10.285/13.230 billion yuan to 9.681/13.156 billion yuan. It is estimated that the EPS from 2022 to 2024 will be 1.05, 1.42 and 1.85 yuan respectively. The corresponding PE is 27.2, 20.0 and 15.4 respectively, maintaining the “overweight” rating.
Risk tip: the supply of chips is short, the price of raw materials rises sharply, the sales of new models are less than expected, and the development progress of overseas markets is less than expected.
