\u3000\u3 China Vanke Co.Ltd(000002) 920 Huizhou Desay Sv Automotive Co.Ltd(002920) )
Event:
Huizhou Desay Sv Automotive Co.Ltd(002920) released the annual report for 2021: in 2021, the company realized an operating revenue of 9.569 billion yuan, a year-on-year increase of + 40.75%; The net profit attributable to the shareholders of the listed company was 833 million yuan, a year-on-year increase of + 60.75%; The net profit attributable to the shareholders of the listed company after deducting non profits was 821 million yuan, a year-on-year increase of + 77.71%.
Key investment points:
Q4 performance meets expectations and profitability continues to improve. In Q4 of 2021, the company achieved an operating revenue of 3.267 billion yuan, with a year-on-year increase of + 30.61% and a month on month increase of + 47.16%. The revenue of three major products, namely, intelligent cockpit, intelligent driving and network services, increased steadily, and new products were put into mass production one after another; The net profit attributable to the parent company was 342 million yuan, a year-on-year increase of + 70.93% and a month on month increase of + 180.33%; The gross profit margin was 24.76%, with a year-on-year increase of + 0.67pct and a month on month increase of + 0.89pct.
New project orders with annual sales of more than 10 billion were obtained. In 2021, the company obtained new project orders with annual sales of more than 12 billion yuan, with a year-on-year increase of more than 80%. Orders for intelligent driving products, large screen cockpit products and intelligent cockpit domain controllers increased rapidly. Among them, intelligent driving products received new project orders with annual sales of more than 4 billion yuan, with sales increasing by nearly 100% year-on-year.
Specifically:
1) smart cockpit business: the company has in-depth cooperation with chip suppliers outside China in the field of smart cockpit, and the product competitiveness continues to improve. In April 2021, the company and horizon announced that they would conduct in-depth cooperation in R & D and technology around the field of intelligent cockpit; In January 2022, the company and Qualcomm announced that they would be based on the 4th generation Xiaolong ® Cockpit platform to jointly build the fourth generation of intelligent cockpit system. At present, cockpit products such as intelligent cockpit domain controller, large screen cockpit products and digital instruments have received new project orders from mainstream car enterprises such as FAW Toyota, Great Wall Motor Company Limited(601633) , Geely Automobile, GAC passenger car, Chery Automobile, Byd Company Limited(002594) and so on.
2) intelligent driving business: the company has designed and developed four generations of intelligent driving domain controllers, which can meet the customized needs of different customers. The new autonomous driving domain controller ipu02, which can realize L2 + level functions based on Texas Instruments tda4 chip, was officially released in 2021 and entered the ADAS market; Based on NVIDIA Xavier chip, the automatic driving domain controller ipu03, which can realize L3 level functions, is mounted on Xiaopeng P7 and has been officially mass produced in 2020; Based on NVIDIA Orin chip, the autonomous driving domain controller ipu04, which can realize L4 level functions, has obtained several project fixed points, including ideal, and is expected to be mass produced in 2023. At present, the company's intelligent driving products have obtained new project orders from customers such as ideal cars, Xiaopeng cars, FAW Hongqi, Geely cars, Chery cars and GAC passenger cars.
3) intelligent Internet service: the company has realized the commercialization of Internet service products such as vehicle level OTA, network security, blue whale OS terminal software, intelligent access, cockpit security housekeeper and information security, and has obtained orders from many customers such as FAW Volkswagen, Chang'an Ford, GAC Toyota and SAIC GM Wuling.
The company is expected to invest 20.5 billion yuan in the three classes and intelligent services, accelerate the growth rate of the company's main business in 2022, and steadily increase the company's profit by 2.8 billion yuan in 2024. It is expected to focus on the three classes and intelligent services, and achieve a year-on-year growth rate of 12.4 billion yuan in 2024; The net profit attributable to the parent company was 1.22 billion yuan, 1.59 billion yuan and 2.16 billion yuan, with a year-on-year growth rate of 46%, 30% and 36%; EPS is 2.2, 2.86 and 3.88 yuan, and the current share price corresponds to 46, 35 and 26 times of PE. The valuation is reasonable, so the company is raised to the "buy" rating.
Risk tip 1) the growth rate of automobile market sales is lower than expected; 2) The development of automatic driving is less than expected; 3) The company's new customer order development is less than expected; 4) The chip shortage was alleviated less than expected; 5) The progress of new business development is less than expected.
