\u3000\u3 Shengda Resources Co.Ltd(000603) 809 Chengdu Haoneng Technology Co.Ltd(603809) )
Key investment points
Event 1: the company released the first quarterly report of 2022 on April 18: the company achieved a revenue of 409 million yuan in 2022q1, with a year-on-year increase of 11.83%, a net profit attributable to the parent company of 82 million yuan, with a year-on-year increase of 23.61%, and a deduction of non attributable net profit of 77 million yuan, with a year-on-year increase of 22.20%.
Event 2: the company released the plan for public issuance of convertible bonds on April 18: the company plans to raise 500 million yuan through public issuance of convertible bonds, which is mainly used for the first phase of the construction project of automobile differential assembly production base.
Revenue grew steadily and profitability improved significantly. On the revenue side, the company achieved a revenue of 409 million yuan in 2022q1, an increase of 11.83% year-on-year and 7.84% month on month. The company’s revenue achieved a relatively steady growth. On the profit side, the company realized a net profit attributable to the parent company of 82 million yuan in 2022q1, with a year-on-year increase of 23.61%, a month on month increase of 240.38%, and a deduction of non attributable net profit of 77 million yuan, with a year-on-year increase of 22.20% and a month on month increase of 672.08%. With the steady growth of revenue scale, the company’s profit was greatly released and achieved a high growth. In terms of profit margin, the gross profit margin of the company in 2022q1 was 39.06% (year-on-year -0.8pct), an increase of 3.80pct compared with that in 2021, and the net profit margin was 20.03% (year-on-year + 1.91%), an increase of 6.21% compared with that in 2021. The company has actively arranged the aerospace business with high gross profit margin. At the same time, the main business of auto parts has been well managed, and the profitability of the company has been greatly improved.
During this period, the expenses were well controlled and the R & D investment was continuously increased. The company’s 2022q1 three expenses accounted for 8.88% (year-on-year -1.51pct), of which the sales expense rate, management expense rate and financial expense rate were 0.83% (year-on-year -0.24pct), 5.34% (year-on-year -2.22pct) and 2.71% (year-on-year + 0.94pct) respectively. The company’s expenses were well controlled and operated. Meanwhile, the company’s R & D expenditure in 2022q1 was 21 million yuan, a year-on-year increase of 6.64%, and the R & D expenditure rate was 5.12%. The company continued to increase R & D investment, effectively ensuring the competitiveness of products.
Continue to increase investment in differential assembly capacity, and the automotive business is expected to usher in qualitative change. The company’s traditional auto parts business mainly includes synchronizer and coupling gear. Since the company’s differential products made a major breakthrough in 2018, the company’s differential business has continued to develop at a high speed. In 2021, the company carried out a number of cooperation with Volkswagen, Geely, great wall, Dongfeng and other customers in differential parts and assembly products for new energy vehicles, and some products have been mass produced. In addition, the company continues to invest around the industrial chain of differential assembly (phase I investment is 1.058 billion yuan, and the raised fund is planned to be 350 million yuan). The project plans to gradually form the casting and machining capacity of differential housing in 2022, so as to build differential products into one of the main businesses with comprehensive competitiveness integrating shell casting, machining, half tooth forging, machining, heat treatment and assembly, It is expected to form an annual production capacity of 5 million differential sets in 2025.
The capacity of aerospace business continues to improve, and the performance is expected to continue to increase. The company’s aerospace business is dominated by the wholly-owned subsidiary haoyiqiang (holding hengyisheng) and the holding subsidiary Haoneng aerospace and the joint-stock subsidiary aerospace Shenkun. Haoyiqiang’s business covers aviation sheet metal processing and precision machining of aviation parts. In 2021, the new aircraft outfield modification service completed the first task. Haoneng aerospace, newly established in 2021, is engaged in aerospace high-end special valves, pipelines and connectors, which are applied to aerospace liquid rocket engines, orbit attitude control engines, liquid rocket booster delivery systems and other fields. Aerospace Shenkun, which took shares in 2021, is a designated commercial aerospace manufacturing supporting enterprise of Aerospace Hi-Tech Holding Group Co.Ltd(000901) Seventh Academy. In 2021, the company’s aviation parts business realized a revenue of 138 million yuan, with a year-on-year increase of 288.32%. The aerospace business increased rapidly with the release of downstream demand. At present, haoyiqiang’s two-phase aviation parts capacity expansion project is under way. Haoneng aerospace is also expected to gradually form capacity in the second quarter of 2022, and the company’s aerospace business is expected to continue to grow at a high speed.
Investment suggestion: the recent rebound of the epidemic in many places across the country has a great impact on the automobile industry. We lowered the company’s profit forecast. We expect the company’s revenue to be 1.732/2.138/2.458 billion yuan from 2022 to 2024 (the former value is 1.860/22.95/26.37), the net profit attributable to the parent company to be 3.04/4.16/511 million yuan (the former value is 3.40/4.60/5.62), the corresponding EPS to be 1.00 yuan, 1.37 yuan and 1.69 yuan respectively, and the corresponding PE to be 13.9x, 10.2x and 8.3x respectively. The company continues to deepen the dual main business layout of “automobile + aerospace”, which is expected to achieve leapfrog development and maintain the “buy” rating.
Risk prompt event: military orders are less than expected; Risk of epidemic expansion; The profit forecast is lower than expected.
