Yoshioka precision (836720)
Event: the annual report of the company in 2021 was released. During this period, the company realized an operating revenue of 377 million yuan, with a year-on-year increase of 45.08%; The net profit attributable to the parent company was 56.52 million yuan, a year-on-year increase of 30.00%; The net profit deducted from non parent company was 55.29 million yuan, with a year-on-year increase of 29.07%.
Electric tools + steam mop + new energy auto parts multi wheel drive, with revenue growth of 45% in 2021: the company focuses on the R & D, production and sales of aluminum alloy and zinc alloy precision parts. Its products cover electronic and electrical parts, auto parts and other parts, mainly used in cleaning electrical appliances, electric tools, communication equipment, body main structure, on-board host system, power system and braking system. In 2021, the company achieved an operating revenue of 377 million yuan (+ 45.08%), of which 197 million yuan (+ 41.18%, accounting for 52%), mainly due to the increase in revenue of power tool manufacturer Makita and the increase in procurement of the company, as well as the mass production of new products in the early stage; The revenue of auto parts was 130 million yuan (+ 58.41%, accounting for 34%), mainly due to the company's mass production of new products, customer recognition and increased procurement, and the increase in sales to customers such as jimingmei, Cummins and gates resort. In terms of operating results, the company's gross profit margin in 2021 was 27.66% (- 1.97pct), including 29.65% (+ 0.43pct) for electronic and electrical parts and 21.05% (- 6.47pct) for auto parts, mainly due to the rise in the price of raw materials. At the same time, the price adjustment of auto parts customers has a certain lag, and the impact will be weakened in the first half of this year. The net interest rate was 14.97% in 2021, with a year-on-year decrease of 1.74pct.
Focus on R & D, continue to develop new products, and the market recognition is rising: the R & D cost of the company reached 18.37 million yuan (+ 67.85%) in 2021, and the R & D cost rate was 4.87% (+ 0.56pct). Up to now, the company has 104 utility model patents and 2 invention patents. According to the announcement of the annual report, the company continued to strengthen the development of new products, independently developed steam heaters, and became the designated supplier of steam heaters for shark, the leading steam mop; The motor structure products jointly developed by the company and customers have been applied to model 3 and model y models in small batch production; The developed motor rotor products have been mass produced and applied to LG motor products; The shell for motor cooling water pump used by jiminmei customers for new energy vehicles has been successfully developed and mass produced; Mass production of lithium battery connector has been realized and has been used on Contemporary Amperex Technology Co.Limited(300750) battery base sector. At the same time, in 2021, the company won the "best partner supplier award" of BorgWarner, the "outstanding contribution award of 2020" of Makita, and the "third growth star of Chinese die casting enterprises" of China Foundry Association (17 in China).
Most of the customers are well-known enterprises, with clear price adjustment mechanism and strong cost transmission ability. The gross profit margin may be expected to be repaired in 2022: the company's main customers include Makita, Ecovacs Robotics Co.Ltd(603486) , Canon, a.o Smith, Bosch, Cummins, Wandu chassis, Shenlong Automobile, electric decoration day, bogwarner, Sanli lamp, Bridgestone and other well-known enterprises at home and abroad. The customers in the terminal field include Tesla, LG, Contemporary Amperex Technology Co.Limited(300750) , etc. The price adjustment mechanism of the company's main customers is clear, which is divided into two modes: 1) fixed cycle price adjustment, with the first largest customer Makita for 1.5 months and Wandu chassis (Suzhou) and Bridgestone for 6 months; 2) When raw materials fluctuate by more than 5%, customers include Gaosheng precision, Cummins, Ningbo Haige, Ecovacs Robotics Co.Ltd(603486) , Canon, a.o. Smith, etc. As the price adjustment effect of auto parts gradually appeared last year, the overall gross profit margin of the company is expected to recover. In addition, the company has a strong ability to obtain new customers. The revenue of new customers accounted for 11%, 8% and 13% respectively from 2018 to 2020.
With the trend of new energy vehicles, the concept of lightweight has expanded the aluminum die casting Market and brought new growth to automobile Revenue: the company's auto parts products include electronic system parts, filter system parts, steering gear, chassis parts, power, buffer, transmission system parts, etc., and the application fields include body main structure, on-board host system, power system and braking system. According to the data of the automobile industry association, the scale of China Shanxi Guoxin Energy Corporation Limited(600617) automobile market continues to expand. In 2020, the production and sales of Shanxi Guoxin Energy Corporation Limited(600617) automobiles reached 1316100 and 1367300 respectively, an increase of 10.01% and 13.38% respectively over the same period of the previous year. With the control of the epidemic in China, the acceleration of economic recovery, the rapid growth of China's economy and the rapid development of the new energy vehicle market, the growth trend of China's metal products industry is obviously better. In 2021, driven by the policy of vigorously promoting new energy vehicles in energy conservation and emission reduction, the market demand for aluminum alloy parts increased accordingly. The company's auto parts revenue reached 13 Streamax Technology Co.Ltd(002970) 0 yuan, accounting for 34.45% of the annual revenue and the gross profit margin was 21.05%.
Investment suggestion: the company is a leading enterprise in the precision aluminum alloy industry and has been deeply cultivated in the aluminum alloy die casting industry for many years. In 2022, the company will actively prepare for the "intelligent transformation project of precision machinery parts production line with an annual output of 29 million pieces". At present, the company continues to optimize the product order structure, increase the investment in the introduction of automatic assembly line, and introduce Siasun Robot&Automation Co.Ltd(300024) for unmanned operation to improve production efficiency. With the effective promotion of the projects with raised investment funds, the production capacity will be gradually released. We expect the revenue growth rate of the company from 2022 to 2024 to be 22.2%, 17.9% and 28% respectively, and the net profit growth rate to be 28.5%, 14.9% and 35.8% respectively; Maintain the investment rating of Buy-A, and the six-month target price is 20.48 yuan, which is equivalent to the dynamic P / E ratio of 25.6x in 2022.
Risk warning: the development of downstream industries is not as expected, the risk of product promotion, and the shutdown caused by the epidemic
