\u3000\u3 China Vanke Co.Ltd(000002) 126 Zhejiang Yinlun Machinery Co.Ltd(002126) )
Event: the company released its annual report for 2021: it achieved a revenue of 7.816 billion yuan, a year-on-year increase of 23.6%; The net profit attributable to the parent company was 220 million yuan, a year-on-year decrease of 31.47%.
Comments:
The annual revenue grew steadily and the profit was under pressure in the short term. (1) In 2021, the company will firmly adhere to the strategic direction of “secondary entrepreneurship” and actively expand new projects and new customers. Benefiting from the gradual batch production release of the company’s orders in passenger vehicles, especially new energy business, the company achieved a revenue of 7.816 billion yuan in the whole year of 21 years, a year-on-year increase of 23.6%. Among them, yinlun new energy, the two major business entities in the company’s new energy business sector, achieved an annual revenue of 1.048 billion yuan, a year-on-year increase of 223.49%; Shanghai yinlun achieved an operating revenue of 893 million yuan, a year-on-year increase of 133.25%. (2) Due to the shortage of chips in the automotive industry, the price rise of bulk materials, the rise of export freight, the overdraft of the national five year plan, the increase of new energy R & D expenses and other factors, the comprehensive cost has increased, and the profit side of the company is under pressure. The gross profit margin of sales in 21 years was 20.37%, with a year-on-year decrease of 3.55pct; The net profit margin on sales was 3.38%, a year-on-year decrease of 2.41pct. In addition, in 21 years, the company’s provision for goodwill impairment and share based payment affected the net profit attributable to the parent by 25 million yuan and 21 million yuan respectively. Finally, the company realized the net profit attributable to the parent by 220 million yuan, a year-on-year decrease of 31.47%.
21q4 revenue maintained growth and profit fell year-on-year. The revenue of 21q4 company was 1.985 billion yuan, an increase of 9.30% year-on-year and 11.71% month on month; Affected by the rising cost, the gross profit margin of 21q4 sales was 19.73%, a year-on-year decrease of 2.3pct and a month on month increase of 0.32pct; The net profit margin on sales was 0.68%, down 2.5pct year-on-year and 2.05pct month on month. 21q4 company’s loss from changes in fair value is 35 million yuan and asset impairment loss is 50 million yuan; Finally, the company’s net profit attributable to the parent company in 21q4 was 05 million yuan, a year-on-year decrease of 89.07%.
The new energy business is expected to drive the continuous growth of the company, and the cost reduction and fee control is expected to improve the profitability of the company. (1) The company has made greater efforts to expand new energy vehicle heat management, industrial heat exchange, electric energy storage and heat exchange and other emerging fields. In 2021, the company obtained 141 new projects, including air-conditioning box of North American new energy benchmark car enterprise, Chongqing Changan Automobile Company Limited(000625) electronic water pump, front-end module and thermal management integration module of China’s new car making forces, Volvo car battery cooling version and cooling module, Contemporary Amperex Technology Co.Limited(300750) battery cooling board, of which the new energy vehicle business accounts for about 48.7%. After the completion of the above projects, it is expected to add nearly 4.117 billion yuan of annual sales revenue to the company. In 2022, the company’s operating revenue target is 8.8-9.2 billion yuan, of which the revenue of new energy products accounts for more than 25%. (2) In 2022, the company will vigorously promote the “three reduction” project, that is, three projects to reduce losses, costs and procurement costs. Aiming at the low gross profit products and key loss making products analyzed and tapped by the company internally and externally, we will reduce costs, improve quality and efficiency and eliminate loss making products through vave, design, process, procurement, lean operation, business price adjustment, peer benchmarking and other measures. By focusing on internal improvement and cost control, the company expects the annual net profit margin of sales to increase by 1-2 percentage points year-on-year.
Investment suggestion: the company is a leading enterprise of automobile heat exchanger in China, with strong competitiveness in traditional main business; Tail gas treatment and heat management of new energy vehicles are developing rapidly, with great medium and long-term growth potential. It is expected that the rise in the price of raw materials and the decline in the prosperity of heavy trucks will continue to affect the company’s performance this year. We lowered the company’s net profit attributable to the parent company in 2022 and 2023 to 340 million yuan and 500 million yuan (the previous value was 510 million yuan and 680 million yuan), corresponding to 20 times and 14 times of PE respectively. Maintain the “buy” rating.
Risk tip: the prosperity of the industry is declining, the price of raw materials continues to rise, and the landing of new projects and new production capacity is less than expected.
