\u3000\u3 Shengda Resources Co.Ltd(000603) 997 Ningbo Jifeng Auto Parts Co.Ltd(603997) )
Event overview
The company announced in its 2021 annual report that it achieved a revenue of 16.83 billion yuan in 2021, a year-on-year increase of 7.0%; The net profit attributable to the parent company was 130 million yuan, with a year-on-year increase of 148.9%, deducting the net profit not attributable to the parent company of 100 million yuan, with a year-on-year increase of 153.6%, which is located in the performance forecast center. Among them, the revenue of 2021q4 was 4.33 billion yuan, a year-on-year decrease of 8.7%, the net profit attributable to the parent was – 40 million yuan, a year-on-year decrease of 198.4%, and the net profit not attributable to the parent was – 40 million yuan, a year-on-year decrease of 142.6%.
Analysis and judgment:
The performance turned from loss to profit year-on-year, waiting for the suppression factors to ease
The company achieved a revenue of 16.83 billion yuan in 2021, a year-on-year increase of + 7.0%, of which grammer’s revenue in 2021 was 14.65 billion yuan, a year-on-year increase of + 7.8%, and Jifeng’s headquarters revenue was 2.18 billion yuan, a year-on-year increase of + 1.7%. In a single quarter, the revenue of 2021q4 was 4.33 billion yuan, with a year-on-year increase of – 8.7% and a month on month increase of + 14.4%. The improvement mainly benefited from the gradual relief of core shortage. Under the influence of factors such as rising raw material prices, rising freight costs and repeated epidemics, the company still turned losses into profits year-on-year. In 2021, the net profit attributable to the parent company was 130 million yuan, compared with – 260 million yuan in the same period last year, of which grammer realized a net profit of 110 million yuan, compared with – 510 million yuan in the same period last year. Although in a single quarter, 2021q4 continued to suffer losses and remained under pressure as a whole, with the steady progress of integration, the lack of core and the rise in the price of raw materials gradually eased, and the performance is expected to continue to improve in 2022.
The gross profit margin is under pressure in the short term, and the R & D investment is increased
The gross profit margin of the company in 2021 was 14.1%, year-on-year + 0.6pct. If excluding the freight of RMB 30 million included in the operating cost due to the adjustment of accounting standards, the gross profit margin was 14.3%, year-on-year + 0.8pct, of which the gross profit margin of 2021q4 was 11.6%, year-on-year -5.2pct and month on month -0.8pct, The obvious pressure on the same month on month basis is mainly due to the impact of the rise in the price of raw materials (steel, plastic particles, chemical raw materials, etc., and the direct materials account for about 70% of the cost). The superposition of lack of core leads to the decline of capacity utilization. In terms of expenses, in 2021, the sales expense rate (adjustment), management expense rate, R & D expense rate and financial expense rate were 1.9%, 8.0%, 1.9% and 1.1% respectively, with a month on month ratio of – 0.5pct, – 0.1pct, + 0.3pct and – 1.1pct. Among them, the company continued to maintain R & D investment and prospectively judged the future trend of product technology, so as to develop the passenger car seat business and maintain the international leading technical advantages in passenger car headrest, seat armrest and central control system.
Breakthrough in domestic replacement of passenger car seats from 0 to 1
In October 2021, the company obtained the fixed point of the passenger car seat project of a new power brand OEM, which is a breakthrough from 0 to 1. It is expected that the value of a single car will increase from Shenzhen Jt Automation Equipment Co.Ltd(300400) yuan (headrest + armrest, tier 2) to 5000 yuan (seat assembly, tier 1). Due to high technical barriers, passenger car seats have long been monopolized by Andorra, Lear and other foreign suppliers. The company is the leader in the subdivision of seat headrests in the world. We estimate that the global market share is more than 25%, reflecting strong cost control ability. It is expected that in the future, it is expected to accelerate the share in the field of passenger car seats and open up growth space by virtue of cost performance and rapid response ability.
Comprehensive coordination refers to the global intelligent cockpit leader
Jifeng Group acquired grammer, Germany, in 2018, completed the delivery in 2019 and began the consolidation in Q4, 2019and started the comprehensive integration in 2020, including the adjustment of grammer’s organizational structure, multiple measures to reduce costs and increase efficiency, and the layout integration of production base, which highlighted the improvement of operation. At the same time, grammer and Jifeng jointly explore the market, enable products and customers to import each other, and jointly improve the market share. Facing the Centennial revolution of Electric Intelligence in the automotive industry, the company actively embraces and expands new intelligent products such as passenger car seats, audio headrests, mobile central control system and armrests, 3D glass glass technology, vertically arranges smart home heavy truck cockpit, electric air outlet, etc., and breaks through new forces of car making such as Tesla, Weilai and ideal, In the long run, “dajifeng” is expected to give full play to grammer’s century old technical advantages such as seats and Jifeng’s flexible mechanism of private enterprises to impact the trillion yuan market of intelligent cockpit and point to the global leader.
Investment advice
The integration effect is becoming more and more obvious, and the expansion of new products and new customers is accelerated. Dajifeng (Jifeng + grammer) is expected to become the leader of global intelligent cockpit in the future. Adjusted profit forecast: maintain the income of 19.52/23.51 billion yuan in 202223 unchanged. Considering the impact of the rise in the price of raw materials, the net profit attributable to the parent company is reduced from 530 / 840 million yuan to 520 / 820 million yuan, and EPS is reduced from 0.49/0.76 yuan to 0.47/0.73 yuan. It is estimated that the income and net profit attributable to the parent company in 2024 will be 26.89 billion yuan and 1.08 billion yuan respectively, and EPS is 0.96 yuan, corresponding to pe21 / 13 / 10 times of the closing price of 9.59 yuan on January 27, 2022, Maintain the “buy” rating.
Risk tips
The sales volume of passenger car industry is lower than expected; The progress of integration is less than expected; Customer expansion is not as expected; Industry competition intensifies; Increase of raw material cost, etc
