\u3000\u3 China Vanke Co.Ltd(000002) 920 Huizhou Desay Sv Automotive Co.Ltd(002920) )
Event overview
The company released its 2021 annual report: in 2021, the company achieved a revenue of 9.57 billion yuan, a year-on-year increase of + 40.8%, a net profit attributable to the parent of 830 million yuan, a year-on-year increase of + 60.8%, and a deduction of 820 million yuan not attributable to the parent, a year-on-year increase of + 77.7%; Among them, the revenue of 2021q4 was 3.27 billion yuan, a year-on-year increase of + 30.6%, a month on month increase of + 47.3%, the net profit attributable to the parent was 340 million yuan, a year-on-year increase of + 70.9%, a month on month increase of + 182.6%, and the deduction of non attributable parent was 340 million yuan, a year-on-year increase of + 45.9% and a month on month increase of + 189.0%.
Analysis and judgment:
Q4 performance met expectations, hitting a new high in revenue and profit in a single quarter
Revenue side: in 2021, the company’s three product lines of intelligent cockpit, intelligent driving and Internet service grew at a high speed, with revenue growth of + 33.5%, + 94.8% and + 65.1% respectively year-on-year, driving the revenue of 9.57 billion yuan in 2021, up + 40.8% year-on-year; Among them, 2021q4 achieved a revenue of 3.27 billion yuan, a year-on-year increase of + 30.6% and a month on month increase of + 47.3%, basically in line with expectations and reaching a record high in a single quarter.
Profit side: the gross profit margin of the company reached 24.6% in 2021, with a year-on-year increase of 1.2pct, which is mainly promoted by the increase of gross profit margin of intelligent driving business (20.8% in 2021, with a year-on-year increase of + 9.9pct, and the scale effect is gradually highlighted). Under the dual effects of revenue growth and gross profit margin improvement, the company realized a net profit attributable to the parent company of 830 million yuan in 2021, a year-on-year increase of + 60.8%, and deducted 820 million yuan not attributable to the parent company, a year-on-year increase of + 77.7%, which is generally in the upper middle range of the performance forecast. Among them, the net profit attributable to the parent company in 2021q4 was 340 million yuan, with a year-on-year increase of + 70.9% and a month on month increase of + 182.6%, which was mainly driven by the increase of gross profit margin and the decline of sales rate.
Expense side: in 2021, the sales, management, R & D and financial rates were 2.4%, 2.8%, 10.2% and – 0.1% respectively, with a year-on-year increase of -0.7pct, + 0.0pct, – 0.1pct and + 0.4pct respectively. The year-on-year increase of financial rates was mainly due to the decrease of exchange income.
The intelligent transformation of the main business of the cockpit has sufficient orders to accelerate the release of performance
Cockpit products are the traditional main business of the company, covering on-board information entertainment, driving information display, display terminal, body information and control, etc. in 2021, new annual sales of about 8 billion yuan and new project orders:
(1) in 2021, the core product on-board infotainment system received new project orders from customers such as FAW Volkswagen, SAIC Volkswagen, Great Wall Motor Company Limited(601633) , Geely Automobile, GAC passenger car and Chery Automobile, in which the business scale of large screen products increased rapidly;
(2) emerging business: the display module and system and liquid crystal instrument are developing rapidly. The display module and system will maintain a growth rate of more than 100% in 2021 and break through the white point customers such as Dongfeng Nissan and Xiaopeng automobile; Liquid crystal instrument has been designated by Byd Company Limited(002594) , Geely Automobile, Great Wall Motor Company Limited(601633) , GAC passenger car and other customers;
(3) external cooperation: the company signed a cooperation agreement with Huawei on the whole scene intelligent travel ecological solution, and joined hands with Qualcomm to build a new generation of intelligent cockpit system based on the 4th generation Xiaolong cockpit platform to comply with the general trend of cockpit intellectualization.
Adas accelerates large-scale cooperation with NVIDIA to dig Jin Zhijia
The strategic layout of intelligent driving covers L2, L3 and above levels. Now it has entered the accelerated harvest period. In 2021, new project orders with annual sales of more than 4 billion yuan were obtained:
(1) advanced assisted driving ADAS: 360 look around, full-automatic parking and driver monitoring to achieve large-scale mass production, and successfully break through the white point customers such as SAIC GM, great wall, SAIC Cheng and Weilai; In November 2021, it jointly released a new intelligent driving solution ipu02 with Texas Instruments, which is the world’s first tda4 chip ADAS mass production project, and is expected to continue to benefit from ADAS penetration;
(2) L3 and above high-level autopilot: 1) at the hardware level, the L3 level autopilot domain controller ipu03 is now equipped with Xiaopeng P7 / P5; Ipu04 based on NVIDIA’s latest generation of Orin chip was successfully offline in September 2021. It has been designated for many projects, including traditional independent brand customers and new car making forces. We expect ASP per bike to reach 1 Shenzhen Zhongheng Huafa Co.Ltd(000020) 000 yuan. As the only partner of NVIDIA China at this stage, the company deeply benefits from the introduction of high-level automatic driving; 2) At the software level, we reached a strategic cooperation with maxieye to build the development and service operation capability of L1-L4 full stack automatic driving scheme, and explore the operation service mode of smart heavy truck.
Investment advice
Intelligent cockpit products benefit from the trend of large screen and multi screen cockpit, and the performance is accelerated; Intelligent driving products cover L2, L3 and above, and have entered the harvest period: 1) ADAS products are accelerated in large quantities; 2) L3 and above join hands with NVIDIA to deeply benefit from the introduction of high-level automatic driving. Optimistic about the long-term growth of the company’s intelligent transformation opportunities and raised the profit forecast. It is expected that the company’s revenue in 20222023 will be adjusted from 11.78/13.95 billion yuan to 11.80/14.97 billion yuan, the net profit attributable to the parent company will be adjusted from 1.11/1.69 billion yuan to 1.21/1.61 billion yuan, the EPS will be adjusted from 2.00/2.51 yuan to 2.18/2.89 yuan, the new revenue forecast in 2024 will be 18 billion yuan, the net profit attributable to the parent company will be 2.01 billion yuan, and the EPS forecast will be 3.62 yuan, corresponding to the closing price of 100.40 yuan / share on April 14, 2022, PE was 46 / 35 / 28 times respectively, maintaining the “overweight” rating.
Risk tips
Industry competition intensifies; Product development and customer project acquisition are not as expected; Chip shortage; The cost of raw materials has risen.
