\u3000\u3 China Vanke Co.Ltd(000002) 920 Huizhou Desay Sv Automotive Co.Ltd(002920) )
Event: on April 17, the company released the quarterly report of January 2022. 1q22’s revenue was 3.14 billion, with a month on month ratio of + 53.9% / – 3.8%, and the net profit attributable to the parent company was 320 million, with a month on month ratio of + 39.2% / – 6.9%.
The performance in the first quarter of 2022 exceeded expectations. 1) Revenue growth far exceeds that of the industry. In the first quarter, the growth rate of the company’s revenue far exceeded the industry level. Customers are expected to be mainly driven by GAC (1q22 GAC Toyota / GAC motor sales + 23% / + 22%), SAIC Volkswagen (1q22 sales + 33%) and Xinli (1q22 Xiaopeng / ideal sales + 159% / + 152%). In terms of products, it is expected to benefit from the continuous volume of products such as multi screen, cockpit domain controller, look around and parking system. At the end of the first quarter, the company’s inventory was 2.6 billion (year-on-year + 112.2%), and its contract liabilities were 340 million (month on month + 21.4%), and the company’s revenue increment still has potential; 2) The net interest rate is running at a high level. 1q22’s gross profit margin was 24.0%, with a year-on-year rate of -1.1pct, a year-on-year rate of three fees of -1.5pct (including a year-on-year rate of sales expenses of -1.0pct), and a year-on-year rate of R & D expenses of + 0.8pct. The net profit margin was 10.0%, with a year-on-year increase of -1.2pct. The net profit margin of the company was affected by the gross profit margin in the short term, but it was still high.
High growth in 2022 is expected
1. New orders in 2021 hit a record high, and the company is still in the seller’s market. In 2021, the company received orders for core platform projects of many mainstream main engine manufacturers, such as Volkswagen, Toyota, great wall, Geely and new forces. The annual sales of new orders exceeded 12 billion yuan (including 4 billion intelligent driving products), with a year-on-year increase of more than 80%, breaking a record high. At present, the company is still unable to fully meet customer orders and is expected to continue to achieve super industry growth.
2. Intelligent cockpit + intelligent driving + Internet service. In terms of cockpit, in 2021, the company’s second-generation cockpit domain controller was mass produced and the third-generation products were designated by mainstream customers. The company reached a strategic cooperation with Qualcomm. The two sides will jointly build the fourth generation intelligent cockpit system based on the fourth generation Xiaolong cockpit platform; In terms of intelligent driving, in 2021, the company’s new generation of lightweight intelligent driving platform realized mass production and supply of memory parking products, and the high-power automatic driving domain controller platform based on NVIDIA Orin chip has been designated by many projects; In terms of Internet service, in 2021, the company launched a new generation of intelligent cockpit interactive operating system blue whale 4.0, which has been installed on the new model of hechuang automobile. Overall, the company’s intelligent business full stack service capability continues to evolve.
Investment suggestion: we expect the company to achieve operating revenue of 12.5 billion yuan, 15.91 billion yuan and 20.22 billion yuan in 2022, 2023 and 2024, corresponding to net profit attributable to parent company of 1.18 billion yuan, 1.55 billion yuan and 2.05 billion yuan. Calculated at today’s closing price, PE is 50.4 times, 38.5 times and 29.1 times, maintaining the “buy” rating.
Risk tip: the mitigation degree of chip shortage is lower than expected, the rise of raw material cost is higher than expected, and the recovery of automobile market demand is lower than expected
