\u3000\u3 Shengda Resources Co.Ltd(000603) 035 Jiangsu Changshu Automotive Trim Group Co.Ltd(603035) )
The company’s performance grew steadily in 2021, showing its business resilience under the multiple effects of rising raw material prices and lack of core. The company’s revenue in 2021 was 2.66 billion (year-on-year + 20.1%), the scale effect promoted the gross profit margin to 24.05% (year-on-year + 0.8pcts), and the net profit attributable to the parent company was 420 million yuan (year-on-year + 16.2%); Q4’s single quarter revenue was 860 million yuan (YoY + 11.1%, mom + 42.6%), the gross profit margin was 24.32% (YoY + 3.43pcts, mom + 1.79pcts), and the net profit attributable to the parent company was 143 million yuan (YoY + 1.9%, mom + 122%). In 2021, the company overcame the adverse factors such as rising prices of raw materials, lack of core and epidemic situation. The annual gross profit margin reached a new high in recent five years, and the annual revenue and net profit attributable to the parent company reached a record high, showing strong business resilience. Considering the company’s abundant orders on hand and excellent cost control ability, we slightly raised the profit forecast for 2022 / 2023 and added the profit forecast for 2024. We predict that the net profit attributable to the parent company in 2022 / 2023 / 2024 will be 525 (+ 0.14) / 658 (+ 0.04) / 801 million yuan, EPS will be 141 (- 0.01) / 1.77 (- 0.04) / 2.16 yuan / share, corresponding to the current share price PE of 9.9/7.9/6.5 times. The company’s new energy customer projects will expand smoothly and is expected to contribute to the performance increment in the future, Maintain the “overweight” rating.
The cost structure continues to be optimized. In 2021, the company’s three fee rate was -3.1pcts year-on-year
In 2021, the company achieved remarkable results in cost reduction and efficiency increase. The three fee expense ratio was 12.1% (year-on-year – 3.1pcts), of which the management expense ratio decreased by 1.0pcts, the sales expense ratio decreased by nearly 0.2pcts due to the decrease of packaging expenses, and the financial expense ratio decreased by about 1.9pcts due to the decrease of convertible bonds into shares and bank loans; At the same time, the company increased R & D investment, increased the cost of mold and equipment optimization and the salary of R & D personnel, resulting in the R & D expense rate increasing to 3.65% (year-on-year + 0.6pcts).
The customer structure has been continuously optimized. In 2021, the proportion of new energy customers in revenue has rapidly increased to 24.5%. According to the disclosure of the company’s annual report, in 2021, the company continued to optimize the customer structure. The increase in orders of new energy vehicle customers and high-end traditional vehicle customers has driven the steady growth of the overall performance. The ideal, Tesla, vinfast, Great Wall Motor Company Limited(601633) , BAIC off-road, Zero run, Nezha and other new customers or projects undertaken by the company have been completed and put into operation successively, It helped the company increase the proportion of new energy sales to 24.5% in 2021, 13.9 PCTs higher than that in 2020. In addition, in 2021, the company won new projects such as BMW exterior decoration project, Jidu automobile door panel, instrument panel assembly and so on, accelerating the pace of project expansion.
Risk tip: the sales volume of new energy vehicles is lower than expected, the price of raw materials rises sharply, and the epidemic situation repeats.
