\u3000\u3 China Vanke Co.Ltd(000002) 920 Huizhou Desay Sv Automotive Co.Ltd(002920) )
Event overview: on April 14, the company released the annual report of 2021: during this period, the operating revenue was 9.569 billion yuan, a year-on-year increase of 40.75%; The net profit attributable to the parent company was 833 million yuan, a year-on-year increase of 60.75%; The net profit after non deduction was 821 million yuan, a year-on-year increase of 77.71%; The net operating cash flow was 842 million yuan, a year-on-year increase of 91.86%.
Automatic driving products have been mass produced one after another, and the business is expected to continue in large quantities. During the reporting period, the company’s automatic driving business achieved a revenue of 1.387 billion yuan, with a year-on-year increase of 95%. Behind the high performance growth, all products achieved obvious gains. Among them, sensors: the annual shipment of cameras exceeds 10 million, and ADAS cameras have been designated by multiple vehicle manufacturers; 77GHz millimeter wave has been mass produced on a large scale, and the development and design of a new generation of ak2 ultrasonic radar has been completed; 5g and v2x products are supplied for the first time in China; Controller: the annual sales volume of ipu01 exceeds one million sets; Ipu02 has been designated by many car factories and has achieved mass production and supply by the end of 21; Ipu03 realizes large-scale supply in P7 and P5; Ipu04 has received many orders, including customers of traditional independent brands such as SAIC, ideal and Gaohe, as well as new car manufacturers.
With the increase of the volume and price of intelligent cockpit, the company has gained obvious advantages. According to the prediction of autohome, the penetration rate of on-board entertainment system will be 92% from 2021 to 2025. We expect that the company’s intelligent cockpit business will continue to accelerate and extend from medium and high-end to medium and low-end models, covering more models. At the same time, according to the data of China industry information network, the value of intelligent cockpit monomer has risen from about 1500 yuan to about 9000 yuan, and its value has been increasing. The “one core multi screen” products cooperated by the company and Qualcomm have taken the lead in mass production, and the on-board infotainment system products supporting a variety of platform models for new customers such as FAW Toyota, Great Wall Motor Company Limited(601633) , Geely Automobile and other OEMs have been mass produced in large scale. Combined with the improvement of individual value, the company’s performance may be guaranteed for a long time. During the reporting period, the company’s intelligent cockpit business achieved an operating revenue of 7.893 billion yuan, a year-on-year increase of 33.52%. Among them, the business scale of large screen products has increased rapidly, the revenue scale of display module and system business has increased by more than 100%, the liquid crystal instrument business has continued to rise, and has been designated by many host factories.
Relying on the large-scale mass production and supply chain capacity of high gross margin products, the overall gross profit margin of the company has increased significantly. On the revenue side, we judged that relying on the large-scale mass production of high gross margin product ipu03, the overall gross profit margin of automatic driving business increased rapidly, reaching 20.78%, with a year-on-year increase of 9.94pct; On the cost side, under the background of lack of core and rising raw materials, in order to cope with the fluctuation of the supply market, the company actively arranged and purchased raw materials to deal with the risk. According to the disclosure of the annual report, the residual value of inventory at the end of the period reached 2.03 billion yuan, an increase of 85% over the beginning of the period. Therefore, even if the impact of the industry remains the same, the gross profit margin of the company’s products can still rise against the trend, reaching 24.60%, with a year-on-year increase of 1.21pct. We expect that on the basis of the company’s active preparation, with the mitigation of core shortage and the continuous large-scale mass production of ipu03 / 04, the gross profit margin of the company’s products may still maintain an upward trend.
Investment suggestion: we expect the company to realize a net profit attributable to the parent company of RMB 1.173/15.75/2.106 billion in 22-24 years, and the current market value corresponds to 48 / 35 times of PE in 22 / 23 years. We believe that the company has high-quality passenger source and obvious advantages in intelligent cockpit and intelligent driving card, so we maintain the “recommended” rating.
Risk warning: the impact of fluctuations in the global auto market; Supply recovery is less than expected; Business progress is less than expected.
