\u3000\u3 China Vanke Co.Ltd(000002) 6 Fiyta Precision Technology Co.Ltd(000026) 00)
Event: the company released its annual report for 2021, and achieved an operating revenue of 30.384 billion yuan in 2021, yoy + 7.97%; The net profit attributable to the parent company was 1.18 billion yuan, yoy-47.93%; The net profit of non parent company deduction was 805 million yuan, yoy-61.9%. The company plans to repurchase Changshu Guorui Technology Co.Ltd(300600) million yuan of shares at a repurchase price of no more than 8 yuan / share for equity incentive plan or employee stock ownership plan.
Comments: the profitability of structural parts has declined, the performance has been under pressure for 21 years, the gross profit margin has bottomed out, and the profitability is expected to be repaired. In 2021, the operating revenue reached 30.384 billion yuan, yoy + 7.97%; The net profit attributable to the parent company was 1.18 billion yuan, yoy-47.93%; The net profit deducted from non parent company was 805 million yuan, yoy-61.9%, and 490 million asset impairment was withdrawn in the whole year. In the single quarter of 2021q4, the revenue was 8.756 billion yuan, yoy + 1.34%, qoq-1.47%, and the net profit attributable to the parent company was 89 million yuan, yoy-110.85%, qoq-110.24%. In the single quarter of Q4, 300 million asset impairment was accrued. In terms of business segments, the revenue of precision functional parts, structural parts and modules, chargers and high-quality assembly, materials, automotive products and others was 22.168/56.05/12.54/4.44/914 million yuan, accounting for 72.96% / 18.45% / 4.13% / 1.46% / 3.01%, yoy + 1.87% / + 48.6% / + 33.48% / + 141.54% / - 38.52%. The gross profit margin of precision functional parts, structural parts and modules, chargers and boutique assembly is 19.84% / 5%, yoy-5.63pct / -0.43pct. The gross profit margin of sales in the whole year of 21 was 16.33%, yoy-5.9pct and the decline of gross profit margin was mainly affected by the decline of profitability of structural parts. The ratio of sales / management / R & D / financial expenses in 21 years is 1.04% / 3.96% / 5.6% / 1.2% respectively, yoy + 0.1pct / + 0.5pct / - 0.6pct / - 0.6pct. Repurchase demonstrates confidence in long-term development. The company plans to repurchase Changshu Guorui Technology Co.Ltd(300600) million yuan of shares at a repurchase price of no more than 8 yuan / share for equity incentive plan or employee stock ownership plan.
Continue to overweight the consumer electronics business, continue to expand production capacity and strengthen share. Years of experience in precision components, horizontal + vertical integration to create an industry-leading one-stop intelligent manufacturing platform, the company continued to expand production capacity and overweight consumer electronics business. In January 21, the company signed a project cooperation agreement with the Management Committee of Guilin economic and Technological Development Zone in Guilin to invest in the construction of Lingyi Itech (Guangdong) Company(002600) intelligent manufacturing project and build a " Lingyi Itech (Guangdong) Company(002600) Intelligent Manufacturing Industrial Park", so as to improve the company's business synergy, expand the company's production base and give full play to the strengths and advantages of both parties. Guilin Lingyi factory has officially started on December 6, 2021. In February, 22, the company signed the Guilin Lingyi Itech (Guangdong) Company(002600) intelligent manufacturing project (phase II) cooperation agreement with Guilin Municipal People's Government in Guilin. It plans to invest no less than 2 billion yuan to introduce the supporting charging module business of consumer electronics and develop and produce power adapters and chargers for mobile phones, tablet computers and personal electronic products.
Layout new energy vehicles + Ar / VR new track and give full play to business synergy. Combined with the advantages of precision manufacturing, the company strengthened the layout of new energy vehicles, clean energy and other new fields, completed the acquisition of Zhejiang Jintai Electronics Co., Ltd. in 21 years, and vigorously developed the new energy vehicle business through the proposed investment and construction of battery structural parts project. Phase I investment of the company: 1.8 billion yuan + 2.5 billion yuan for phase II investment. New energy vehicle products mainly include power battery cell, aluminum shell, cover sector, adapter and soft connection. At present, the main products are precision structural parts. In the future, it is expected to continue to benefit from the continuous penetration of new energy vehicles + the increase of power battery installation. In the field of AR / VR, the company's Suzhou Lingyi precision was opened in 21 years. It aims to provide international key customers with AR / VR integrated precision injection molding structural parts solutions, and provide strong support for the development of customers in the fields of new energy vehicles and medical treatment in East China.
Investment suggestion: referring to the company's performance growth rate, profit margin level and the bottom of gross profit margin in 21 years, the profitability is expected to be repaired, the company's revenue in 22 and 23 years will be reduced from 40.19 and 48.23 billion yuan to 37.22 and 44.67 billion yuan, the net profit will be reduced from 3 and 3.96 billion yuan to 2.28 and 2.68 billion yuan, the target price is 6.2 yuan / share, and the "buy" rating will be maintained.
Risk tip: the competition of consumer electronics intensifies, the share increase is less than expected, the expansion of new products is less than expected, and there is still uncertainty in share repurchase
