\u3000\u3 China Vanke Co.Ltd(000002) 920 Huizhou Desay Sv Automotive Co.Ltd(002920) )
Key elements of the report:
The company released its annual report for 2021. During the reporting period, the company achieved a total operating revenue of 9.569 billion yuan, a year-on-year increase of 40.75%, a net profit attributable to shareholders of listed companies of 833 million yuan, a year-on-year increase of 60.75%, and a net profit attributable to shareholders of listed companies of 821 million yuan, a year-on-year increase of 77.71%.
Key investment points:
Orders broke a record high and the performance exceeded expectations: in 2021, the company achieved a total operating revenue of 9.569 billion yuan, a year-on-year increase of 40.75%, which exceeded expectations. In the fourth quarter, the company achieved an operating revenue of 3.267 billion yuan, a year-on-year increase of 30.61%. In terms of business, the operating revenue of intelligent cockpit business was 7.893 billion yuan, a year-on-year increase of 33.52%, the operating revenue of intelligent driving was 1.387 billion yuan, a year-on-year increase of 94.78%, and the operating revenue of Internet service and other services was 289 million yuan, a year-on-year increase of 65.10%. The three major businesses of the company achieved good growth and the order volume increased rapidly. In 2021, it obtained new project orders with annual sales of more than 12 billion yuan, breaking a record high, Among them, the orders of intelligent driving business exceeded 4 billion yuan, and the orders of intelligent driving, large screen cockpit products and domain controllers all increased rapidly. In 2021, even in the face of core shortage and rising prices of upstream raw materials, the company's automotive electronics business still achieved a gross profit margin of 24.60%, with a year-on-year increase of 1.21pct, of which the gross profit margin of intelligent cockpit and intelligent driving business increased by 0.43pct and 9.94pct respectively, highlighting the company's strong product competitiveness.
Benefiting from the development of intelligent connected vehicles, many products such as intelligent cockpit, intelligent driving and domain controller are expected to continue to contribute to the performance growth point: the company's card smart connected vehicle growth track will fully benefit from the development trend of intelligence and networking of China's automobile industry. In terms of intelligent cockpit, the second-generation cockpit domain controller has achieved large-scale mass production, and the third-generation cockpit products have been designated by many mainstream independent brand customers such as Great Wall Motor Company Limited(601633) , GAC AIAN, Chery Automobile and ideal automobile. In addition, it integrates multi-dimensional interaction with the fourth-generation intelligent cockpit system jointly developed by Qualcomm and supports diversified intelligent and scene modes, which is expected to be recognized by more customers; In terms of intelligent driving, the company has mastered the whole stack of self-developed solutions from intelligent sensors to intelligent driving domain controllers and related algorithms. The products of look around and parking system have been supplied to many mainstream vehicle enterprises in China in batch. The first generation of high computing power automatic driving domain controller platform has taken the lead in mass production and supply on P7 and P5 models of Xiaopeng automobile, In addition, the new generation of high-power automatic driving domain controller platform based on NVIDIA Orin series chips has been designated by many projects of traditional independent brand customers and new car building forces. In the later stage, it will become another pillar of the rapid growth of the company's intelligent driving business.
Profit forecast and investment suggestions: we estimate that the total operating revenue of the company from 2022 to 2024 will be 12.816 billion yuan, 16.490 billion yuan and 20.979 billion yuan respectively, the net profit attributable to shareholders of listed companies will be 1.132 billion yuan, 1.539 billion yuan and 1.945 billion yuan respectively, and the EPS will be 204 yuan, 2.77 yuan and 3.50 yuan respectively. Combined with the closing price on April 14, 2022, the corresponding PE will be 49.25 times, 36.23 times and 28.66 times respectively The three major performance orders of intelligent driving and Internet service increased rapidly and maintained the "buy" rating.
Risk factors: the car sales volume is lower than expected, and the business expansion of intelligent Internet connection is lower than expected.
