\u3000\u3 Shengda Resources Co.Ltd(000603) 596 Bethel Automotive Safety Systems Co.Ltd(603596) )
Events
The company released its annual report for 2021. In 2021, the company achieved a revenue of 3.49 billion yuan, a year-on-year increase of + 14.8%; The net profit attributable to the parent company was 510 million yuan, a year-on-year increase of + 9.3%; Among them, 21q4 achieved a revenue of 1.16 billion yuan, a year-on-year increase of + 14.5%; The net profit attributable to the parent company was 140 million yuan, a year-on-year increase of – 15.8%.
Key investment points
In 2021, the intelligent electronic control business grew rapidly, the production and marketing scale of EPB reached a new high, and the mass production of wire control was smooth
In 2021, the company’s revenue was 3.49 billion yuan, a year-on-year increase of + 14.8%, and its main business revenue was 3.42 billion yuan, a year-on-year increase of + 18.1%. Among the three main businesses, the revenue of intelligent electronic control business was 1.27 billion yuan, a year-on-year increase of 65.4%, the revenue of disc brake was about 1.24 billion yuan, a year-on-year increase of about 1%, and the revenue of lightweight business was about 860 million yuan, a year-on-year increase of about 1.1%. The high growth of intelligent electronic control business is mainly due to ① the innovation of EPB production and sales scale as high as about 1.29 million sets (about 60% of YoY) from independent customers to joint ventures and from single model to platform projects; ② The smooth mass production of brake by wire contributes a new increment. In 2021, the sales volume of brake by wire is about 18000 sets, and the revenue is about 33 million yuan.
Affected by the business structure and the price rise of raw materials, the gross profit margin is under pressure in the short term
In 2021, the gross profit margin of the company was 24.2%, with a year-on-year decrease of -2.24pct, of which the gross profit margin of the main business was 23%, with a year-on-year decrease of -1.47pct. Among the three main businesses, the gross profit margin of the intelligent electronic control business was 24.43%, with a year-on-year increase of + 0.98pct. Thanks to the scale effect, the gross profit margin of the disc brake business decreased by about 1PCT year-on-year, and the gross profit margin of the lightweight business decreased by about 4pct year-on-year. The reasons for the large decline of the gross profit margin of the lightweight business; ② Aluminum and energy prices are rising.
The capacity of intelligent electronic control is increased, and the high growth in 2022 is expected to continue
Brake by wire: in 2022, the company will add two more lines to control movable production lines. It is estimated that by the end of 2022, the company will have 1.08 million sets of line controlled movable production capacity (360000 sets in 2021). ESC: in 2022, the company will add 300000 sets of esc620 production lines per year. It is estimated that by the second half of 2022, the company will have 480000 sets of ESC production capacity (180000 sets in 2021). EPB: in 2022, the company will add 500000 sets of EPB caliper assembly production lines per year, In 2021, the capacity will reach 1.6 million sets, and the capacity in 2022 is expected to reach 2.1 million sets (1.6 million sets in 2021). The capacity of intelligent electronic control will be increased to meet the needs of customers. In 2021, the company will add 83 EPB projects, 11 wire control projects, 9 Adas projects and 2 electric tailgate projects.
Acquire steering assets and attack by wire chassis platform tier 1
The company announced that it would jointly acquire 65% equity of Wanda company with Ruizhi Lianneng, a wholly-owned subsidiary of Wuhu Chery technology, of which Bethel Automotive Safety Systems Co.Ltd(603596) acquired 45% equity of Wanda company (with a capital contribution of 200 million yuan) and Ruizhi Lianneng acquired 20% equity of Wanda company (with a capital contribution of 89 million yuan) Bethel Automotive Safety Systems Co.Ltd(603596) nominates more than half of the board of directors of Wanda company after the acquisition, and Wanda company will be included in Bethel Automotive Safety Systems Co.Ltd(603596) consolidated statements after the acquisition. Wanda company is Tier1 of automobile steering system. Its main products are steering gear and steering column. In the first November of 2021, its revenue is about 750 million yuan and its net profit is about 17.14 million yuan. The acquisition of Wanda is an important step in the company’s wire controlled chassis strategy, enriching the company’s products in the field of online controlled chassis. It is expected to further integrate the suspension in the future. In the medium and long term, the company is expected to become a wire controlled chassis platform company, which will gain significant increment in the era of electric intelligence.
Profit forecast and valuation
Since the main line controls the driving faucet, the braking by wire benefits from intelligent + localization double click, and the progress of obtaining customers continues to exceed expectations.
After the acquisition of steering assets, the company’s strategy of chassis by wire will accelerate, and it is expected to further integrate the suspension in the future. It is expected to become a platform company of chassis by wire in the medium and long term, which will gain significant increment in the era of electric intelligence. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 620 million yuan, 850 million yuan and 1.07 billion yuan respectively, and that of yoy will be 23.7%, 36.2% and 26.2% respectively. The corresponding PE will be 35, 26 and 20 times respectively, which will be rated as “buy”.
Risk tips
Chip supply was less than expected, chip and raw material prices rose, the epidemic marginal disturbance demand, and customer expansion was less than expected
