\u3000\u3 Shengda Resources Co.Ltd(000603) 596 Bethel Automotive Safety Systems Co.Ltd(603596) )
Core view
The company released the annual report of 2021: the company’s revenue / net profit attributable to the parent company in 2021 was 3.492 billion / 505 million, with a year-on-year increase of + 14.8% / + 9.3% respectively. Among them, the revenue of 4q21 company was 1.164 billion, with a month on month ratio of + 14.5% / + 47.8%, and the net profit attributable to the parent company was 136 million, with a month on month ratio of – 15.8% / + 6.4%. This year, the company plans to distribute cash dividends of RMB 1.28 per 10 shares.
1. Revenue side: the volume and price of intelligent electronic control products rise at the same time. In 2021, the company’s revenue of mechanical braking / intelligent electric control products was + 1.1% / + 65.4% year-on-year respectively. From the perspective of volume price splitting, the sales volume of the company’s disc brake / lightweight brake parts / intelligent electronic control products were + 6.2% / – 4.7% / + 57.2% year-on-year respectively, of which the average price of intelligent electronic control products was + 5.2% year-on-year. Thanks to the production of new EPB projects and the mass production of wcbs, the company’s intelligent electronic control products showed a state of simultaneous increase in volume and price.
2. Profit side: raw material cost exerts pressure on gross profit margin. 1) Gross profit margin. The gross profit margin of 2021 / 4q21 was 24.2% / 22.1% respectively, with a year-on-year increase of – 2.2pct / – 2.8pct respectively. In terms of splitting, the overall gross profit margin of the company’s auto parts business in 2021 was 23.0%, with a year-on-year increase of -1.5pct (direct material negative impact of 1.4pct), of which the gross profit margins of mechanical braking products / intelligent electronic control products were 22.2% / 24.4%, with a year-on-year increase of -2.7pct / + 1.0pct respectively; 2) Cost rate. The proportion of 2021 / 4q21 three fees of the company was 2.8% / 3.1% respectively, with a year-on-year increase of -0.3pct / + 1.5pct respectively. Among them, the sales expenses of 4q21 increased significantly year-on-year, mainly because 4q20 implemented the new income standard, resulting in a low base. In 2021, the company’s R & D expense ratio was 6.9%, with a year-on-year increase of + 1.1pct; 3) Profit margin. The company’s 2021 / 4q21 net profit margin was 15.1% / 11.7% respectively, with a year-on-year increase of – 1.1pct / – 3.4pct respectively, and the company’s gross profit margin put downward pressure on the profit margin.
The reserve of new projects, new products and new production capacity is sufficient, and the growth elasticity can be expected. 1) The development of new projects is smooth. In 2021, 160 fixed-point projects (involving 90 new models) were added, including 83 EPB projects, 11 wcbs projects, 9 ADAS projects, 2 electric tailgate opening and closing system (PLG) projects and 17 lightweight projects; 2) New products continue to advance. Wcbs2 is expected to be completed in 2022 0 principle prototype development and release, esc620 production, chip alternative design and production, a-spice process, environment and functional safety development, EPS / SBW system research and development, complete EMB principle prototype development, develop parking / urban condition weekly technology and obtain mass production projects, and develop closed-loop cloud data architecture and obtain mass production projects; 3) Capacity accelerated landing. It is estimated that 300000 sets / year wcbs assembly production line, 300000 sets / year esc620 assembly production line, 500000 sets / year EPB caliper assembly production line and Shanghai Pudong Development Bank Co.Ltd(600000) sets / year wcbs valve body machining production line will be added in 2022. ADAS product production line based on front view camera system will also be put into operation soon.
Investment suggestion: we expect the company to achieve operating revenue of 4.7 billion yuan, 6.11 billion yuan and 7.37 billion yuan in 2022, 2023 and 2024, corresponding to net profit attributable to the parent company of 670 million yuan, 870 million yuan and 1.14 billion yuan. Calculated at today’s closing price, PE is 36.2 times, 28.0 times and 21.2 times, maintaining the “buy in” rating.
Risk tip: the progress of product development and mass production is less than expected, the rise of raw material costs is more than expected, and the recovery of automobile market demand is less than expected
