\u3000\u3 China Vanke Co.Ltd(000002) 920 Huizhou Desay Sv Automotive Co.Ltd(002920) )
Core view:
The investment event company released its annual report for 2021. In 2021, the company achieved a revenue of 9.569 billion yuan, a year-on-year increase of + 40.75%; The net profit attributable to the parent company was 832 million yuan, a year-on-year increase of + 60.75%; The net profit deducted from non return to parent was 821 million yuan, a year-on-year increase of + 77.71%; The basic EPS was 1.51 yuan / share, a year-on-year increase of + 60.64%; The net operating cash flow was 843 million yuan, a year-on-year increase of + 91.86%.
Our analysis and judgment
(I) in the field of intelligence, the revenue growth is beautiful and the performance growth momentum is full. In 2021, the company achieved a revenue of 9.569 billion yuan, a year-on-year increase of + 40.75%, and 21q4 achieved a revenue of 3.267 billion yuan, a month on month increase of + 30.61% / + 47.14% respectively. Specifically, in 2021, the revenue of intelligent cockpit business (accounting for 82.48%) increased by 33.52% year-on-year, and the revenue of intelligent driving business (accounting for 14.50%) increased by 94.78% year-on-year, with significant volume. The company has obvious advantages in the field of intelligent driving and intelligent cockpit. The R & D and supporting capabilities of software and hardware have reached the international leading level, and have been widely recognized by mainstream foreign and domestic brands and new power customers for head car manufacturing. Under the background of the development of automobile intellectualization and networking, the company has strong downstream demand, with annual new orders exceeding 12 billion yuan (4 billion yuan for intelligent driving and 8 billion yuan for intelligent cockpit), with a year-on-year increase of more than 80% and strong performance growth momentum.
(II) high profit products continue to support the upward trend of gross profit margin, and Q4 has a beautiful performance. In 2021, the net profit attributable to the parent company was 832 million yuan, a year-on-year increase of + 60.75%; Among them, Q4's net profit attributable to the parent company in a single quarter was 342 million yuan, with a year-on-month increase of + 70.93% / + 180.64% respectively. In 2021, the gross profit margin of the company's sales was 24.60%, with a year-on-year increase of + 1.21pct, of which the gross profit margin of intelligent cockpit and intelligent driving business was 24.45% / 20.78% respectively, with a year-on-year increase of + 0.43pct / + 9.94pct respectively. Under the background of rising raw material prices and chip shortage, the company's high margin products such as full-automatic parking and 360 degree HD look around continued to obtain new project orders, superimposed with the large-scale mass production of ipu03 products, which played a supporting role in the overall gross profit margin. The gross profit margin of Q4 reached 24.76%, up 0.89pct month on month. In 2021, the company's expense rate during the period was 15.34%, which decreased steadily, including the sales expense rate of 2.42%, year-on-year -0.68pct, the management expense rate of 2.80%, year-on-year + 0.03pct, and the R & D expense rate of 10.21%, year-on-year -0.10pct.
(III) increase investment in high-level R & D to supplement development momentum. In 2021, the company invested nearly 1 billion yuan in R & D, most of which were invested in the construction of intelligent driving and cockpit products, and added R & D branches in Shenzhen and Guangzhou. Weimar base in Germany was launched to continuously improve R & D strength. The company's new product ipu04, an advanced autopilot domain controller based on NVIDIA Orin chip, which can realize L4 level functions, has been designated by many projects, and its large-scale mass production market space is huge. In the future, the company will improve vehicle intelligence through artificial intelligence technology, continue to focus on perception fusion algorithm, control strategy, v2x, 5g, network security and other fields, continue to cultivate the field of intelligent driving assistance, and further layout L3 and L4 level automatic driving.
Investment suggestion: it is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 1.165/15.08/1.899 billion respectively, with a year-on-year increase of 39.86% / 29.46% / 25.91%, corresponding EPS of RMB 2.10/2.72/3.42 per share and PE of 51x / 40x / 31x respectively, maintaining the "recommended" rating.
Risk tips: 1. Risk of adverse impact of chip shortage on the company's operation; 2. Risk of customer orders falling short of expectations.
