\u3000\u3 China Vanke Co.Ltd(000002) 920 Huizhou Desay Sv Automotive Co.Ltd(002920) )
Performance review
The company released its annual report for 2021, with a revenue of 9.6 billion yuan in 21 years, a year-on-year increase of 41%, and a net profit attributable to the parent company of 830 million yuan, a year-on-year increase of 61%. The revenue of 21q4 was 3.3 billion yuan, with a year-on-year / month on month ratio of + 31% / + 47%, and the net profit attributable to the parent company was 340 million yuan, with a year-on-year / month on month ratio of + 71% / + 181%.
Business analysis
In the past 21 years, the revenue of intelligent driving has nearly doubled, and the gross profit margin has increased by 10 PCT. In the 21st year, the revenue of intelligent driving was 1.39 billion yuan, with a year-on-year increase of 95%, mainly due to the large volume of ADAS products in Geely and other auto enterprises and domain controller products in Xiaopeng. At the same time, the gross profit margin of intelligent driving was 20.8%, with a year-on-year increase of 10 PCT; The revenue of intelligent cockpit was 7.89 billion yuan, with a year-on-year increase of 34%, mainly due to the mass production of new projects and the increase of single vehicle value by large screen products; Internet service was 290 million yuan, a year-on-year increase of 65%. The company has a large number of development projects, with an inventory of 2 billion yuan at the end of the year, an increase of 85% year-on-year.
New annualized orders exceeded 12 billion, an increase of 80% year-on-year. From 18 to 21, the company’s new annualized orders were more than 7 / 70 / 70 / 12 billion yuan respectively, and the new orders increased by more than 80% in 21 years, which is a strong support for the performance in the next two years. Among them, the new annual orders for intelligent driving in 21 years exceeded 4 billion yuan (comparison: the annual income in 21 years was 1.4 billion yuan), and the company fully benefited from the acceleration of intelligent automobile.
Intelligent driving occupies the medium and high-end market and enjoys industry dividends. NVIDIA automobile intelligent driving chip has a strong market position. Recently, it has added Byd Company Limited(002594) , with orders of US $11 billion in the next six years, an increase of US $3 billion year-on-year. In terms of intelligent driving, the domain controller ipu04 has been designated by many projects, including Xiaopeng and ideal. The company is Tier1 that benefits most from the implementation of NVIDIA autopilot chip in China. Adas products (smart parking, 360 look around, etc.) have received new project orders from customers such as ideal cars, Xiaopeng cars, Weilai cars, FAW Hongqi, Geely cars, Chery cars, GAC passenger cars, etc. ADAS products drive revenue growth in large quantities. In terms of intelligent cockpit, the company’s own customer base is high-quality, coupled with the rapid increase of large screen business scale, which drives the value of single car and brings the volume and price to rise together.
Profit forecast and investment suggestions
We expect that the net profit attributable to the parent company from 2022 to 2024 will be RMB 1.15/15.5/1.93 billion respectively, and the corresponding EPS will be RMB 2.07/2.80/3.47 respectively. The current share price corresponding to PE is 48 / 36 / 29 times respectively, maintaining the “buy” rating.
Risk tips
The sales volume of supporting models is lower than expected; Competition from technology giants; Chip supply improved less than expected
