\u3000\u3 Shengda Resources Co.Ltd(000603) 596 Bethel Automotive Safety Systems Co.Ltd(603596) )
[key points of investment]
The company released its annual report for 2021, and its revenue in the fourth quarter hit a record high in a single quarter. The company achieved an operating revenue of 3.492 billion yuan in 2021, with 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%. Among them, 2021q4 achieved an operating revenue of 1.164 billion yuan, a year-on-year increase of 14.84% and a month on month increase of 47.85%; The net profit attributable to the parent company was 136 million yuan, a year-on-year decrease of 15.79% and a month on month increase of 6.40%. The company’s revenue in the fourth quarter hit a record high in a single quarter, but the performance of the profit side was lower than that of the revenue side, mainly due to the rise in the prices of raw materials such as iron and aluminum and the significant increase in R & D expenses. The gross profit margin of 2021q4 was 22.13%, a year-on-year decrease of 3.34pct and a month on month decrease of 2.40pct; The R & D cost was 94 million yuan, and the R & D cost rate was 8.10%, an increase of 1.82 PCT year-on-year and 1.05 PCT month on month. The company’s internal financial budget in 2022 is operating revenue of 4.541 billion yuan and net profit of 608 million yuan.
There are many new fixed-point projects, and intelligent electronic control products have become the support of performance growth. In terms of products, the sales of disc brake and lightweight brake parts in 2021 were 1789700 sets and 6487500 pieces respectively, with a year-on-year change of + 6.19% and – 4.66% respectively; The sales volume of intelligent electronic control products was 1.317 million sets, with a year-on-year increase of 57.20%, becoming the support point of performance growth. From the perspective of new projects, 160 fixed-point projects will be added in 2021, involving 90 new models. It is expected that the contribution revenue of the whole life cycle will exceed 11 billion yuan, with an average annual revenue of nearly 2.5 billion yuan. Among them, the number of intelligent electronic control projects increased significantly compared with last year, with 83 new electronic parking brake system (EPB) projects, an increase of 40 over last year; As the first manufacturer of one box brake by wire system in mass production in China, 11 wcbs projects were added in 2021; At the same time, 9 ADAS projects and 2 electric tailgate opening and closing system (PLG) projects are added.
Continue to code intelligent electronic control products. The company will continue to increase investment in the field of intelligent electronic control, and it is expected that 271 intelligent electronic control production lines will be added in 2022. Among them, 300000 sets / year wcbs assembly production line, 300000 sets / year esc620 assembly production line, 500000 sets / year EPB caliper assembly production line, 200000 sets / year double cylinder EPB caliper assembly production line and several supporting production lines are added respectively. And it is expected to complete wcbs2 The development and commissioning of the EH 6200 prototype, the principle of the ESC 6200 prototype, the development and commissioning of the EMB system, and other projects. We believe that under the current general trend of domestic substitution, the company’s EPB, wcbs and other intelligent electronic control products are expected to usher in explosive growth.
Acquire Wanda company and improve the layout of chassis by wire. The company acquired 45% equity of Zhejiang Wanda automobile steering machine Co., Ltd. (hereinafter referred to as “Wanda company”) for 201 million yuan, and the related party Ruizhi Lianneng, a wholly-owned subsidiary of Wuhu technology, acquired 20% equity of Wanda company. After the transfer ◆ is completed, the actual controller of Wanda company will be changed to Yuan Yongbin, the actual controller of Bethel Automotive Safety Systems Co.Ltd(603596) . Wanda company is mainly engaged in the R & D, production and sales of automobile steering system. Its main products are various types of steering gear and steering column. From January to November 2021, the operating revenue was 742 million yuan and the net profit attributable to the parent company was 17 million yuan. Wanda’s products have strong competitiveness in the industry, supporting many famous Chinese car enterprises such as Volkswagen Group, Geely Automobile and Chery automobile. At this stage, Wanda will mainly focus on three core products: new energy vehicle steering system, intelligent steering system and energy absorption steering system. The company’s current acquisition of Wanda company to enter the automotive steering industry will lay a solid foundation for the company to become a comprehensive supplier of chassis by wire.
[investment suggestions]
The company is the leader of China’s braking system. As the first manufacturer of one box wire controlled braking system in China, the intelligent electronic control business such as wcbs and EPB is growing rapidly. At the same time, the company is about to enter the automotive steering industry and is committed to becoming an integrated supplier of chassis by wire. We believe that the company has broad growth space in the field of intelligent electronic control. It is estimated that the operating revenue of the company from 2022 to 2024 will be 4.687/6.042/7.558 billion yuan respectively, the net profit attributable to the parent company will be 6.75/9.17/1.222 billion yuan respectively, the corresponding EPS will be 1.65/2.25/2.99 yuan / share respectively, and the corresponding PE will be 35.94/26.46/19.86 times respectively. Considering the high growth of the company’s intelligent electronic control business, the company is rated as “overweight”.
[risk tips]
The production and sales volume of downstream customers is lower than expected;
The R & D of new projects is less than expected;
The construction of new production line is less than expected;
Raw material price fluctuation risk.
