\u3000\u3 China Vanke Co.Ltd(000002) 920 Huizhou Desay Sv Automotive Co.Ltd(002920) )
Key investment points
Event: Huizhou Desay Sv Automotive Co.Ltd(002920) published the annual report for 21 years. The company achieved revenue of 9.569 billion (year-on-year + 41%) and net profit attributable to parent company / net profit deducted from non attributable to parent company of 833 / 821 million (year-on-year + 61% / 78%). The net cash flow from operating activities reached 843 million (year-on-year + 92%). Cabin business achieved revenue of 7.9 billion, exceeding expectations. Considering the significant year-on-year decrease in the capitalization rate of the company's R & D investment in 21 years / the dilution of the company's profit caused by equity incentive amortization / provision for goodwill impairment, the apparent profit of 833 million is also very excellent.
Cabin revenue exceeded expectations and profits increased with high quality. 21q4 company realized revenue / net profit attributable to parent company of RMB 3.267342 billion, with a year-on-year increase of 30.6% / 70.9% respectively. The net interest rate of single Q4 reached 10.46%, up 5.0/2.5pcts month on month / year on year respectively. In the whole year of 21, the company's cockpit / intelligent driving / Internet service and other businesses achieved revenue of 7.893/13.87/289 billion respectively, with a year-on-year increase of 33.5% / 94.8% / 65.1% respectively. The growth rate of the cockpit sector is bright, and the growth rate of the intelligent driving business is slightly lower than expected, which may be due to the fact that the company's L2 level integrated parking domain controller (ipu02) started mass production and delivery at the end of 21, and the ipu03 supplied by Q4 to Xiaopeng P7 and P5 was also delivered in large quantities, resulting in part of the revenue being deferred to 22q1 for confirmation. In terms of profit, the company's apparent net profit in the whole year of 21 was 833 million, and the annual net interest rate exceeded 8.5%. Considering that the capitalization rate of the company's R & D investment in the whole year of 21 was only 4.5% (year-on-year - 14.9%, if calculated according to the same capitalization rate as that in 20 years, the profit will increase by more than 130 million). Due to the acquisition of antebb, the goodwill impairment loss of 22.52 million this year and the amortization of equity incentive of 25.75 million in 21 years, the profit growth rate of 61% was very bright.
The gross profit of cockpit / intelligent driving business has improved, which proves the smooth progress of the company's high-end transformation. The gross profit margin of the company reached 24.6% in 21 years, a year-on-year increase of +1.2pcts. The gross profit margin of cockpit / intelligent driving business reached 24.4% / 20.8% respectively, with a year-on-year increase of + 0.43% / 9.94% respectively. As a mature business of the company, the cockpit business not only achieved a breakthrough in growth rate (30% +) but also continued to improve its gross profit under the pressure of annual decline of old products, which fully reflects the achievements of Desai's transformation to the field of high-end cockpit. The development of more complex multi screen, large screen and multi screen car engine / LCD instrument projects (such as the ideal one21 820a cockpit platform) has not only brought higher single vehicle value and gross profit level to Desai, The natural barriers of high-end projects also save the company from falling into the quagmire of price war. In the smart drive sector, 21 years was the first year of the company's large-scale production of L2 + domain controllers (the popularity of ipu03 and the start of mass production and delivery of ipu02). While driving the revenue of the smart drive sector to continue to nearly double, their higher gross profit level compared with the parts of the perception layer also significantly increased the gross profit of the smart drive business. According to the annual report, the ipu04 built by the company based on NVIDIA Orin has been designated for many projects. With the large-scale implementation of ipu04, the logic of "high income increase + gross profit improvement" of the company's intelligent driving sector is expected to continue.
There are abundant orders on hand, the inventory / raw materials remain at a high level, and there is no fear of short-term epidemic disturbance. According to the annual report, in the whole year of 21 years, the company obtained new project orders with annual sales of more than 12 billion yuan (a year-on-year increase of 80% +, breaking a record high; among them, intelligent driving products obtained new project orders with annual sales of more than 4 billion yuan). The cockpit sector, information and entertainment system, display module and system, and LCD instrument are well developed, and the order reserve is sufficient. In the intelligent driving sector, the mass production and delivery of ipu02 and many designated projects of ipu04 are expected to be mass produced within this year. Under the background of full orders and scarce production capacity, the impact of vehicle production reduction caused by the epidemic on some customers of the company on the performance of the company is expected to be limited. In addition, the book value of the company's inventory at the end of the year was 2.035 billion, nearly doubling (+ 85%) compared with the beginning of the year, and the high water level of 21q3 continued to rise by 11%, of which raw materials accounted for 45%, much higher than 31% in the past 20 years. Inventory / raw materials are maintained at a high level, plus Desai's high supply chain position, optimistic about the continuous smooth production and delivery of the company's products, and not afraid of short-term epidemic disturbance.
Raise the profit forecast and maintain the "buy" rating. We believe that the high-end transformation of the company's cockpit / intelligent driving two core businesses has taken solid steps, the deepening trend of the industry's electrification / intellectualization process remains unchanged, the company has full orders, scarce production capacity, and is not afraid of the short-term disturbance of the epidemic. By raising the profit forecast, the company is expected to achieve revenue of RMB 12.97/17.06/22.29 billion in 22-24 years, net profit of RMB 1.20/17.4/2.39 billion respectively, and EPS of RMB 2.16/3.13/4.31. Give the company a 22-year 70-75x target P / E, corresponding to the target price of 150.99-161.78 yuan, and maintain the "buy" rating.
Risk tip: the epidemic has led to the continuous decline of China's fuel vehicles / new energy vehicles; The landing process of high-end domain controller is delayed; Intensified competition in cabin business; Deterioration of core shortage in the industry, etc.
