\u3000\u3 Shengda Resources Co.Ltd(000603) 129 Zhejiang Cfmoto Power Co.Ltd(603129) )
Event 1: the company released the annual report of 2021. 1) Revenue side: the company achieved revenue of 7.861 billion, yoy + 73.71%; The net profit attributable to the parent company was 412 million yuan, yoy + 12.78% (the operating cost of this period increased significantly, mainly due to freight + tariff. In 21 years, the company undertook 186 million tariff and 380 million freight, totaling 566 million); Deduct the net profit not attributable to the parent company of 355 million, yoy + 13.85% (non recurring profit and loss of 56 million, mainly including investment income of 25 million). 2) Profitability: gross profit margin 21.52%, yoy-7.79pct; The net interest rate is 5.23%, yoy-2.59pct. Among them, the sales / management / R & D / financial expense rates are 6.60% / 3.54% / 4.82% / 0.41%, yoy-2.07pct / – 1.06pct / – 0.40pct / – 1.03pct respectively. 21q4: the company achieved revenue of 2.173 billion, yoy + 57.61%; The net profit attributable to the parent company was 91 million yuan, yoy+33.98%; Gross profit margin 19.37%, yoy-2.12pct; The net interest rate is 4.42%, yoy-0.2pct.
Event 2: the company released the first quarterly report of 2022. 1) Revenue side: the company achieved revenue of 2.262 billion, yoy + 44.93%. 2) Profit side:
The company realized a net profit attributable to the parent company of 105 million, yoy + 10.22%; Deduct 86 million yuan of net profit not attributable to parent company, yoy-3.37%. 3) Cost side: the gross profit margin was 19.57%, with a year-on-year ratio of -2.96 PCT and a month on month ratio of + 0.2 PCT, mainly due to the rise of export freight and tariffs; The net sales interest rate was 4.74%, with a year-on-year increase of -1.16pct and a month on month increase of + 0.32pct.
Product + brand + channel multi-point layout to build a global sports power brand!
1) products: the company’s 250nk and 250sr have created the champion of bicycle sales at the same level for consecutive years, and cf650g has been selected into the national guest guard. In 2021, the new 800mt has attracted much attention as the domestic maximum displacement adv model, and 1250tr-g redefines the domestic high displacement motorcycle. In 2022, the focus of two wheeled vehicles is 450sr, 250clx, 250sr track version, my22, zeeho and other new models. 2) Brand: the company deepens the high-end image, improves the brand value, integrates the official website, app, E-commerce mall, KOL we media, social platform and other media matrix, empowers the brand, makes full use of various forms such as industry exhibitions, promotional activities and online promotion to do a good job in brand and product promotion, continues to build the locomotive sports culture with CFMOTO characteristics, and improves the company’s influence and market recognition. 3) Channel: 164 new distributors have been added in the Chinese market, with a total of more than 650 distributors, more than 600 “CFMOTO” distribution outlets and more than 40 “ktmr2r” distribution outlets, realizing 100% coverage of the provincial capital and 92% coverage of prefecture level cities, and gradually covering the first and second tier markets to the third and fourth tier markets. There are 150 new retail outlets in the international market, with a total of more than 3000 distribution outlets.
Two or four wheels go hand in hand, develop in a balanced way outside China, and create the third growth curve of new energy vehicles!
1) all terrain vehicles: in 2021, China exported 445300 all terrain vehicles, with a year-on-year increase of + 64.99%, and the export amount was US $898 million, of which the export amount of Zhejiang Cfmoto Power Co.Ltd(603129) all terrain vehicles accounted for 72.62% of the total amount of the country, and continued to occupy the leading position in the industry. With the improvement of the company’s product power and the continuous layout of distribution outlets, the company’s all terrain vehicles ranked first in Europe and continued to increase in North America. 2) Medium and large displacement motorcycles: the sales volume of motorcycles 250cc in China has increased from 7210 in 2011 to 333000 in 2021. Thanks to the company’s precise differentiation route, the company stands out in China’s large displacement motorcycle track, the product pedigree and displacement section are continuously improved, and the maturity is rapidly improved. In 2021, the sales volume of the company’s 250cc straddle motorcycles accounted for 12.34% of the total industry, and the leading position in the industry is obvious. 3) New energy vehicles: the company has accelerated the implementation of the dual line product strategy of new energy vehicles and fuel vehicles, and actively explored new tracks in the electrification industry. Cforceev110 and the first electric motorcycle ae8 have been prepared one after another, making every effort to build the third business growth curve of the company. Ae8 / ae8s + maximum speed 100km / H +, maximum power 12.5KW, maximum endurance 190km. At present, orders have been unlocked in 56 cities, 2 dealers have been built in Jinan and Hangzhou, and the remaining 27 cities are under layout.
Profit forecast: regardless of tariff exemption, we expect the net profit of the company in 22-24 years to be 6.2/9.3/1.31 billion respectively (the net profit in the previous 22-23 years was 7.5/1.07 billion, mainly considering the impact of epidemic and sea freight), and the corresponding PE is 22 / 15 / 11x respectively, maintaining the buy rating!
Risk warning: the prosperity of four-wheel vehicles is less than expected; The sales volume of new products with large displacement is lower than expected; Tariff exemption is less than expected; Exchange rate change risk and macroeconomic fluctuation risk, etc
