\u3000\u3 Shengda Resources Co.Ltd(000603) 596 Bethel Automotive Safety Systems Co.Ltd(603596) )
Event overview: on April 8, 2022, the company released its annual report for 2021, realizing an operating revenue of 3.492 billion yuan, a year-on-year increase of 14.81%; The net profit attributable to the parent company was 505 million yuan, a year-on-year increase of 9.33%; Net profit deducted from non parent company was 431 million yuan, with a year-on-year increase of 5.77%. At the same time, the company announced that it invested 200 million yuan to acquire 45% equity of Wanda steering system and obtain the control of the board of directors to strengthen the synergy of chassis system.
The revenue in 2021 is in line with the market expectation. Affected by the epidemic and raw materials, the profit is slightly under pressure
In 2021, the company achieved a revenue of 3.492 billion yuan, a year-on-year increase of + 14.81%, and a net profit attributable to the parent company of 505 million yuan, a year-on-year increase of + 9.33%. Among them, 2021q4 achieved a revenue of 1.164 billion yuan, a year-on-year increase of + 14.45%, and a net profit of 136 million yuan, a year-on-year increase of – 15.53%. The main reasons for the slight rise in the price of chips and raw materials in the global Q4 end are the slight rise in the price of raw materials.
Increase R & D investment and promote the rapid implementation of electronic braking. It is expected to maintain high growth in 2022
In 2021, the company invested 239 million yuan in R & D, and the R & D expense rate was 6.8%, with a year-on-year increase of + 1.09 PCTs. Among them, the R & D expense rate of 21q4 was as high as 8.1%, with a year-on-year increase of + 1.39 PCTs. High R & D investment helped the company’s electric braking products to continue to land. In 2021, the company added 160 new projects, including 83 epb83 and 11 brake by wire projects. The annual revenue of electric braking products was 1.275 billion yuan, accounting for 36.51% of the total revenue, with a year-on-year increase of + 11.18 PCTs. As an enterprise independently researching and developing one box line controlled movable products in China, the construction of 300000 sets of line controlled movable production capacity per year has been completed. It has been mass produced in June 21 and has been equipped with three mass production models in 21 years. The company continues to plan the construction of line controlled movable production capacity. It is expected that two more lines will be added in 22 years. It is expected that by the end of 22, the company will exceed one million sets of line controlled movable production capacity, and line controlled braking is expected to become the main growth point in the future.
Acquisition of Zhejiang Wanda, layout of steering system, chassis by wire and next city
Zhejiang Wanda is a national Torch Plan high-tech enterprise specializing in the R & D, manufacturing and sales of automotive steering system products. Its core customers include Volkswagen, SAIC GM Wuling, Chery, Geely, etc. Its leading products are automobile steering gear and steering column, and its technology has reached the industry-leading level. The sales volume of EPS products will reach 400000 sets in 2021. The company and its related party Ruizhi Lianneng acquired the equity of Wanda steering Machinery Co., Ltd. (the company invested 200 million, 45% equity; Ruizhi Lianneng invested 90 million, 20% equity), which helped to expand the company’s category and enhance the company’s core competitiveness in the field of wire controlled chassis.
Investment suggestion: Based on the continuous development of new business, we raised the company’s revenue forecast. It is expected that the company will achieve revenue of RMB 4.568/57.60/7.489 billion and net profit attributable to parent company of RMB 599/8.17/1.118 billion from 2022 to 2024. The current market value corresponds to 36 / 27 / 20 times of PE from 2022 to 2024. The company’s automotive electronic products continue to be in large quantities, benefiting from the centralized trend of chassis domain and the acceleration of independent substitution. The leading enterprises in the braking field are expected to enjoy the valuation premium and maintain the “recommended” rating.
Risk tips:
The price fluctuation of raw materials leads to low expectation of gross profit margin, less than expected expansion of new products, less than expected acquisition coordination, less than expected launch of new production capacity, exchange rate risk, etc.
