\u3000\u3 Shengda Resources Co.Ltd(000603) 596 Bethel Automotive Safety Systems Co.Ltd(603596) )
Event: the company released its 2021 annual report. The company’s operating revenue was 3.492 billion yuan, a year-on-year increase of 14.81%, and the net profit attributable to shareholders of listed companies was 505 million yuan, a year-on-year increase of 9.33%.
In 2021q4, the company’s total revenue hit a record high, with a large number of fixed-point businesses, which is expected to grow at a high speed: the company’s Q4 revenue in 2021 was RMB 1.164 billion, a record high, and its gross profit margin was 22.13%, lower than that in 2020. In the whole year, the gross profit margin of the company is 24.19%, which is under pressure compared with 26.43% in 2020. In 2021, the company added 160 new fixed-point projects involving 90 new models. It is expected that these new fixed-point projects will contribute more than 11 billion yuan in the whole life cycle, with an average annual contribution of nearly 2.5 billion yuan. Add 11 wcbs projects, 9 ADAS projects, 2 PLG projects and 17 lightweight projects. We believe that the company has a large amount of research and fixed-point business, which will provide a strong driving force for the subsequent growth of the company.
The company’s revenue of intelligent electronic control braking products increased significantly, while the gross profit margin increased: the company’s revenue of intelligent electronic control products in 2021 was 1.275 billion yuan, a year-on-year increase of 65.43%, and the shipment volume was 1.318 million sets, a year-on-year increase of 58.32%; In the absence of core, the gross profit margin increased by 0.98% to 24.43% compared with 2020, and the average unit price increased slightly to 968 yuan, an increase of 5.24%. We believe that the profitability of the company’s intelligent electronic control business is expected to continue to improve if the lack of core is alleviated in the future, the shipment of the company’s intelligent electronic control braking products is increased, and the scale effect is enhanced.
Due to the lack of core, the shipment volume of lightweight products in 2021h2 is lower than that in previous years, and the bulk price increase affects profits: the annual shipment volume of lightweight braking products in 2021 is 6.487 million sets, which is 2.08 times of that in 2021h1, compared with 2.87 and 2.66 times in 2019 and 2020 in the same period. We believe that the shipment volume of lightweight parts in 2021h2 is relatively small compared with that in previous years, mainly because the customers of lightweight products of the company are mainly international manufacturers such as general motors, In 2021h2, its production and sales are greatly affected by the lack of core. In addition, the gross profit margin of the export part of lightweight components decreased by 3.07% in 2021, which we believe is mainly due to the rise in the prices of bulk commodities such as aluminum.
It is proposed to acquire Zhejiang Wanda steering gear, improve the layout of steering system and make continuous investment in R & D, so as to lay a solid foundation for the subsequent sustainable development of the company: the company’s acquisition of 45% equity of Zhejiang Wanda steering gear will help the company improve the strategic layout of steering business. Meanwhile, the company invested 239 million yuan in R & D expenses in 2021, with a R & D expense rate of 6.85%, significantly higher than 4.04% and 5.75% in 2019 and 2020. Compared with 2020, the company invested 644926 million yuan more in R & D expenses in 2021. In recent years, the company’s new products, such as brake by wire system, double control EPB, electric tailgate, ADAS, etc., continue to bring forth the new. We believe that the company’s strategic acquisition and R & D investment are a strong guarantee for the company’s competitiveness in the future and help the company develop into a chassis level system supplier.
Investment suggestion: we believe that the performance of 2021 company is slightly lower than expected. Affected by the fluctuation of commodity prices and lack of core, we will adjust the net profit attributable to the parent company from 721 million yuan and 983 million yuan to 692 million yuan and 978 million yuan from 2022 to 2023, so as to maintain the investment rating of “buy” of the company.
Risk tips: the recovery of automobile chip supply is less than expected, the sales volume of the company’s customers’ models is less than expected, the acquisition of the company’s new projects is less than expected, the quality risk of the company’s products, the epidemic affects the sales volume of complete vehicles, and the acquisition is still pending the approval of the anti-monopoly law enforcement authority of the State Council and the deliberation of the general meeting of shareholders
