\u3000\u30 Guangdong Tengen Industrial Group Co.Ltd(003003) 51 Zhejiang Yonggui Electric Equipment Co.Ltd(300351) )
Event: on March 30, the company disclosed the annual report of 2021. In 2021, the company achieved an operating revenue of 1.149 billion yuan, a year-on-year increase of 9.08%; The net profit attributable to the parent company was 122 million yuan, a year-on-year increase of 16.43%; The net profit attributable to the parent company after non deduction was 110 million yuan, with a year-on-year increase of 65.32%, and the performance was in line with our expectations.
In the fourth quarter, the performance continued to grow month on month, and the negative impact of the acquisition of Yiteng was completely eliminated. The company achieved an operating revenue of 380 million yuan in the fourth quarter, with a year-on-year increase of 21.4% and a month on month increase of 25.9%. The company maintained a quarter on quarter growth in 2021; The net profit was 32 million yuan, with a year-on-year increase of 6.2%, which was basically the same month on month. The negative impact of the acquisition of Yiteng in 2021 was completely eliminated. Excluding the impact of Yiteng’s consolidated performance from January to may 2020, the revenue increased by 20.8% year-on-year and the net profit attributable to the parent company increased by 25.1% year-on-year.
The rapid growth of new rail transit categories has driven the stable improvement of the overall scale of the rail transit sector. In 2021, the company’s rail transit and industrial sector realized an income of 678 million yuan, an increase of 6.94% over the same period last year. Among them, new products such as vehicle door, gangway and axle counter system quickly seized the market after continuous technological accumulation and innovation, and ushered in the continuous release of performance. The total income of new products was 24800 yuan, an increase of 33.38% over the same period last year, and the proportion of new categories continued to increase.
The customer structure of new energy has been significantly optimized and its performance has increased rapidly. According to the company’s announcement, the company’s on-board products provide the overall solution of high-voltage and high current interconnection system for new energy vehicles, and have entered the supply chain system of domestic first-line brands and joint venture brands such as Byd Company Limited(002594) , Geely, great wall, SAIC, FAW, GAC, BAIC and Honda, and the customer structure has been continuously optimized. In 2021, the company achieved revenue of 350 million yuan from new energy vehicle business, with a year-on-year increase of 81.4%, and the proportion of revenue increased to 30.7%. We believe that in the future, as the penetration rate of new energy vehicles continues to increase rapidly, the demand for on-board high-voltage connectors is expected to increase rapidly, and drive the construction demand of more charging piles. The charging gun sector of the company is expected to benefit fully.
Investment suggestion: we maintain the company’s profit forecast. It is estimated that the company’s operating revenue in 2022 / 23 / 24 will be 14.7/20.4/2.99 billion yuan, and the net profit attributable to the parent company will be 156 / 209 / 285 million yuan. Combined with the valuation of comparable companies and the growth of the company, we give the company 35 times PE in 2022, maintain the target market value of 5.44 billion yuan, maintain the target price of 14.35 yuan, and maintain the “Buy-A” investment rating.
Risk tip: the price rise of raw materials is higher than expected, the sales volume of new energy vehicles is lower than expected, the marketing progress of liquid cooling overcharge is lower than expected, and the prosperity of rail transit industry is lower than expected
