\u3000\u3 Shengda Resources Co.Ltd(000603) 596 Bethel Automotive Safety Systems Co.Ltd(603596) )
Event:
Bethel Automotive Safety Systems Co.Ltd(603596) released the annual report of 2021: in 2021, the company realized an operating revenue of 3.492 billion yuan, a year-on-year increase of + 14.81%; The net profit attributable to the shareholders of the listed company was 505 million yuan, a year-on-year increase of + 9.33%; The net profit attributable to shareholders of listed companies after non deduction was 431 million yuan, a year-on-year increase of + 5.77%.
Key investment points:
Short term pressure on the profit side. In Q4 of 2021, the company achieved an operating revenue of 1.164 billion yuan, a year-on-year increase of + 14.48%; The net profit attributable to the parent company was 136 million yuan, a year-on-year increase of – 15.79%; The gross profit margin was 22.13%, with a year-on-year increase of -2.79pct; The net interest rate was 11.68%, with a year-on-year increase of -3.38pct. Throughout the year, the gross profit margin of the company was 24.19%, with a year-on-year increase of -2.24pct; The net interest rate was 15.10%, with a year-on-year increase of -1.09pct. We believe that the decline of the company’s profitability is mainly affected by the rise of raw material prices and the growth of R & D investment.
160 fixed-point projects were added, and the R & D expense rate was + 1.09pct. During the reporting period, the R & D expense rate of the company was 6.84%, with a year-on-year increase of + 1.09pct. In 2021, the number of projects under research of the company was 189, involving 96 new models; In 2021, 160 fixed-point projects were added, involving 90 new models, including 63 new energy vehicle projects, accounting for 40%, and showing an increasing trend year by year; Among the new projects, there are 83 items of electric parking brake system (EPB), 11 items of brake by wire (wcbs), 9 items of ADAS, 2 items of electric tailgate opening and closing system (PLG) and 17 items of lightweight. Meanwhile, the company put into operation 119 projects in 2021, involving 57 models, including 43 new energy vehicle projects and 23 new energy models.
Comply with the development of intelligent electric and accelerate the expansion of production capacity. The company expects to add 300000 sets / year wcbs assembly production line, 300000 sets / year esc620 assembly production line, 500000 sets / year EPB caliper assembly production line, Shanghai Pudong Development Bank Co.Ltd(600000) sets / year wcbs valve body machining production line, 420000 sets / year EPB caliper body machining production line, 320000 sets / year EPB support machining production line, 70000 sets / year yoke project connector machining production line and 200000 sets / year double cylinder EPB caliper assembly production line in 2022. In addition, the company actively arranges ADAS products based on front view camera system, and the production line will also enter the state of production.
Profit forecast and investment rating: the company’s product technology is leading, intelligent electric projects continue to expand, fixed-point projects continue to grow, and production capacity accelerates expansion. It is optimistic about the future development of the company. It is estimated that the company will achieve revenue of 4.584 billion yuan, 5.858 billion yuan and 7.362 billion yuan from 2022 to 2024, with a year-on-year growth rate of 31%, 28% and 26%; The net profit attributable to the parent company was 652 million yuan, 881 million yuan and 1.18 billion yuan, with a year-on-year growth rate of 29%, 35% and 34%; EPS is 1.60, 2.16 and 2.89 yuan. The current share price corresponds to 37, 28 and 21 times of PE. The valuation is reasonable. The company is given a “buy” rating for the first time.
Risk Tips 1) the price of raw materials continues to rise; 2) The sales growth of new energy vehicles was lower than expected; 3) The company’s new customer expansion is less than expected; 4) The capacity of new business is lower than expected; 5) Capacity expansion was less than expected.
