\u3000\u3 China Vanke Co.Ltd(000002) 126 Zhejiang Yinlun Machinery Co.Ltd(002126) )
Core view
The performance is in line with expectations. In 2021, the annual revenue was 7.816 billion yuan, a year-on-year increase of 23.6%, the net profit attributable to the parent was 220 million yuan, a year-on-year decrease of 31.5%, and the net profit not attributable to the parent was 208 million yuan, a year-on-year decrease of 20.2%; In the fourth quarter, the revenue was 1.985 billion yuan, an increase of 9.3% year-on-year and 11.7% month on month; The net profit attributable to the parent company was 05 million yuan, down 89.1% year-on-year and 88.5% month on month; Net profit deducted from non parent company was 23 million yuan, with a year-on-year increase of 14.7% and a month on month decrease of 19.8%. In 2021, the company’s profitability was under great pressure due to the comprehensive impact of factors such as the rise in the price of bulk materials, the rise in export freight and the increase in new energy R & D expenses; In the fourth quarter, the net profit attributable to the parent decreased significantly on a month on month basis, mainly due to the impact of the company’s provision for goodwill impairment of 254434 million yuan and the impact of the provision for share based payment expenses of 208557 million yuan. In 2021, the company plans to pay a dividend of 0.08 yuan per share to shareholders.
The gross profit margin is under pressure in the short term, and the expense rate is improved. In the fourth quarter of 2021, the gross profit margin was 19.7%, a year-on-year decrease of 2.3 percentage points and a month on month increase of 0.3 percentage points; The annual gross profit margin was 20.4%, with a year-on-year decrease of 3.5 percentage points. The year-on-year decrease in gross profit margin is expected to be mainly due to the rise in the price of raw materials and the rise in export freight. During the whole year of 2021, the expense rate decreased by 1.5 percentage points year-on-year, of which the sales expense rate decreased by 0.4 percentage points year-on-year, the management expense rate decreased by 0.7 percentage points year-on-year, and the financial expense rate decreased by 0.3 percentage points year-on-year. The net cash flow from operating activities in 2021 was 375 million yuan, a year-on-year decrease of 17.9%.
Gradually improve the layout of new energy heat management and cultivate new growth points in the industrial field. The company continues to increase R & D investment in the field of new energy vehicle thermal management, gradually forms a “1 + 3 + n” product layout, and has the comprehensive supporting capacity from single products, integrated modules to new energy thermal management system. It is one of the suppliers with the most complete range of new energy thermal management products in the world. In 2021, the company’s new energy business revenue was 838 million yuan, and the proportion of revenue increased significantly to 10.7% (the proportion of revenue of new energy business in 2020 was 4.6%), and won a number of new energy supporting projects such as North American new energy benchmark car enterprise air conditioner, China New force front-end module and thermal management integration module, Volvo battery cooling board and cooling module, Contemporary Amperex Technology Co.Limited(300750) battery cooling board and so on. According to the announcement of the company, the company has obtained 141 new projects in 2021, and it is expected to increase the annual sales revenue of about 4.117 billion yuan after reaching the production capacity, of which the new energy business accounts for about 48.7%, contributing about 2.004 billion yuan to the annual sales revenue. With the continuous volume of orders for the company’s new energy business, the proportion of new energy business is expected to further increase in 2022, becoming an important pillar of the company’s revenue and profit. In addition, the company has actively explored the blue ocean market in the industrial field, carried out layout in advance around geothermal, energy storage and UHV, and cultivated strategic profit growth points for the development of the company.
Profit forecast and investment suggestions
Slightly adjust the income and gross profit margin. It is predicted that EPS will be 0.51, 0.67 and 0.90 yuan from 2022 to 2024 (0.52 and 0.69 yuan from the previous 22-23 years). The comparable company is related to the automobile heat exchanger and new energy vehicle industry chain. The average PE valuation of the comparable company in 22 years is 24 times, and the target price is 12.24 yuan, maintaining the buy rating.
Risk tips
The supporting amount of tail gas post-treatment is lower than expected, the supporting amount of heat management system of new energy vehicles is lower than expected, and the supporting amount of heat exchanger is lower than expected.
