\u3000\u3 China Vanke Co.Ltd(000002) 920 Huizhou Desay Sv Automotive Co.Ltd(002920) )
Core view
The performance is in line with expectations. In 2021, the annual revenue was 9.569 billion yuan, a year-on-year increase of 40.7%, the net profit attributable to the parent was 833 million yuan, a year-on-year increase of 60.7%, and the net profit not attributable to the parent was 821 million yuan, a year-on-year increase of 77.7%; In the fourth quarter, the revenue was 3.267 billion yuan, an increase of 30.6% year-on-year and 47.1% month on month; The net profit attributable to the parent company was 342 million yuan, an increase of 70.9% year-on-year and 180.6% month on month; Net profit deducted from non parent company was 341 million yuan, with a year-on-year increase of 45.9% and a month on month increase of 188.0%. With the development of the "new four modernizations" of automobiles, the company's business grew rapidly, and the scale of revenue and orders accelerated. In 2021, the company obtained orders with annual sales of more than 12 billion yuan, a year-on-year increase of more than 80%. In 2021, the company plans to pay a dividend of 0.45 yuan per share to shareholders.
Gross profit margin improved and cash flow increased significantly. In the fourth quarter of 2021, the gross profit margin was 24.8%, with a year-on-year increase of 0.7 percentage points and a month on month increase of 0.9 percentage points; The annual gross profit margin was 24.6%, an increase of 1.2 percentage points year-on-year. During the whole year of 2021, the expense rate decreased by 0.4 percentage points year-on-year, of which the sales expense rate decreased by 0.7 percentage points year-on-year, and the financial expense rate increased by 0.4 percentage points year-on-year, mainly due to the decrease of exchange income. The net cash flow from operating activities in 2021 was 843 million yuan, a year-on-year increase of 91.9%, mainly due to the increase in sales during the reporting period.
There are abundant orders for intelligent cockpit business. In 2021, the company's intelligent cockpit business revenue was 7.893 billion yuan, with a year-on-year increase of 33.5%. Various intelligent cockpit product projects continued to be promoted. The company's third-generation cockpit domain controller has been designated by great wall, ai'an, Chery, ideal and other vehicle enterprises. The fourth-generation cockpit system is developed based on Qualcomm Xiaolong's fourth-generation cockpit platform and supports leading technologies such as multi screen linkage, multi-dimensional interaction and AR; The infotainment system received orders from customers such as SAIC Volkswagen, FAW Volkswagen, GAC, great wall, Geely and Chery, the display module and system broke through new customers such as Xiaopeng and Dongfeng, and the LCD instrument was designated by Byd Company Limited(002594) , Geely, great wall and GAC.
The revenue of intelligent driving and networking services is growing rapidly, and the new generation of automatic driving domain controller is expected to become the pillar of growth. In 2021, the company's intelligent driving business revenue was 1.387 billion yuan, a year-on-year increase of 94.8%, and the annual sales of new orders exceeded 4 billion yuan; The revenue of online services and other products was 289 million yuan, a year-on-year increase of 65.1%. The company's intelligent driving camera has been designated by many car companies, 77GHz millimeter wave radar has been mass produced on many models, and the development of a new generation of ak2 ultrasonic radar has been completed; In terms of domain controller, the company's first generation of automatic driving domain controller platform has been mass produced on Xiaopeng P5 and P7. The new generation of automatic driving domain controller is built based on NVIDIA's high computing power chip Orin, supports redundant design and high-level automatic driving, has obtained a number of independent vehicle enterprises and new potential fixed points, and is expected to become an important pillar of the rapid growth of intelligent driving business. In the field of Internet service, the company achieved 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 obtained orders from FAW Volkswagen, Chang'an Ford, GAC Toyota and other automobile enterprises.
Profit forecast and investment suggestions
The revenue of intelligent cockpit and intelligent driving in 21 years exceeded the expectation, adjusted the revenue and gross profit margin forecast, and predicted that the EPS from 2022 to 2024 would be 2.11, 2.82 and 3.61 yuan (the original 22-23 years were 1.64 and 2.04 yuan). Based on the 22-year PE valuation, the comparable company is an automotive electronics and parts related company. The average PE valuation in 2022 was 58 times, and the target price was 122.38 yuan, maintaining the buy rating.
Risk tips
The supporting quantity of on-board entertainment system, on-board information system and driving information system is lower than expected, the business income of Internet of vehicles, LCD and ADAS is lower than expected, and the demand of passenger car industry is lower than expected
