\u3000\u3 China Vanke Co.Ltd(000002) 179 Avic Jonhon Optronic Technology Co.Ltd(002179) )
Event: the company released its annual report for 2021, and achieved a revenue of 12.867 billion yuan in 2021, a year-on-year increase of 24.86%; The net profit attributable to the parent company was 1.991 billion yuan, a year-on-year increase of 38.35%.
Contract liabilities increased significantly, and related party transactions are expected to continue to improve
In 2021, the company achieved a revenue of 12.867 billion yuan, a year-on-year increase of 24.86%; The net profit attributable to the parent company was 1.991 billion yuan, a year-on-year increase of 38.35%. In a single quarter, Q4 achieved a revenue of 2.99 billion yuan, a year-on-year increase of 13.31%; The net profit attributable to the parent company was 368 million yuan, with a year-on-year increase of 8.27%. Q4 generally conforms to the fluctuation law of historical quarters. The company’s expense rate during the period was 19.87%, with a year-on-year increase of 0.31 PCT, mainly due to the rapid growth of management expenses and R & D expenses, including R & D expenses of 1.306 billion yuan, with a year-on-year increase of 35.66%. The company continued to increase investment in independent innovation capacity. In terms of profit margin, the gross profit margin was 37%, with a year-on-year increase of 0.97pct; Roe was 18.22%, with a year-on-year increase of 2.14pct. Cost reduction, efficiency increase and operation quality improvement further promoted the growth of the company’s profitability.
On the balance sheet side, contract liabilities amounted to 1.03 billion yuan, a significant increase of 246% over the beginning of the period, indicating sufficient orders on hand; The inventory was 4.73 billion yuan, an increase of 69% over the beginning of the period, including 829 million yuan of raw materials (+ 66%), 1.25 billion yuan of products in process (+ 53%) and 2.65 billion yuan of goods in stock (+ 80%). At the end of the cash flow statement, the net cash flow from operating activities was RMB 2.062 billion, with a year-on-year increase of 62.74%, and the collection was significantly better. In terms of related party transactions, it is expected to sell 2.674 billion yuan of goods to related parties in 2022, an increase of 37.5% compared with last year; The purchase of raw materials from related parties was 613 million yuan, an increase of 25.5% over last year.
New energy vehicles may be the driving force for the company’s long-term development, and the 2035 vision aims to be world-class
The company is the first connector company involved in the new energy vehicle industry in China. In 2021, the strategic transformation of the company’s new energy vehicle business was accelerated, the annual order doubled, and successfully designated a number of key model projects abroad. After being reviewed by a number of international first-class vehicle enterprise suppliers, the business gradually gathered to high-quality customers. The medium and long-term growth trend of new energy vehicles is clear. We believe that the company’s new energy vehicle business is expected to usher in a rapid development stage. The structural adjustment of communication and industrial business has achieved initial results, and the operation quality has been significantly improved. In the future, the company will continue to clarify the “first-class” development vision, and military and civilian products are expected to develop continuously and rapidly.
Open a new round of raising, investment and production expansion to continuously improve the company’s industrial competitiveness
The company completed the non-public offering of shares in December 21 and raised funds for South China industrial base project, basic component Industrial Park Project (phase I) and supplementary liquidity. The geographical location of South China industrial base is closer to the main market of civil products, which is conducive to the formation of industrial cluster effect and effectively improve the stability of the company’s overall industrial chain and industry status; The basic components industrial park project (phase I) aims at military products, strengthening the development of high-end special connectors and tackling key core technologies in aviation, aerospace and other defense fields. The company responded to the Ministry of production in advance, laying the foundation for sustained and rapid growth in the 14th five year plan.
Profit forecast: the company is the leader of military connectors, fully benefiting from the large volume of downstream weapons and equipment, and the future or continuous breakthrough of civil new energy vehicle business. It is optimistic that the company will achieve the long-term goal of 2035 through raising and investment. As the actual value of the net profit in 21 years is slightly lower than the previous forecast value, for the sake of prudence, we will slightly lower the net profit in 22-23 years from 2795 / 3462 million yuan to 2634 / 3353 million yuan, 2024 to 4.215 billion yuan, corresponding to EPS of 2.32/2.95/3.71 yuan and PE of 30.63/24.06/19.14x, maintaining the “buy in” rating.
Risk warning: military orders are less than expected; The decline of subsidies for new energy vehicles leads to the decline of demand; The external environment has an impact on the company’s purchase of imported materials.
