\u3000\u3 China Vanke Co.Ltd(000002) 284 Zhejiang Asia-Pacific Mechanical & Electronic Co.Ltd(002284) )
Event overview: on April 20, 2022, the company released its annual report for 2021. In 2021, the company realized an operating revenue of 3.631 billion yuan, a year-on-year increase of + 24.29%; The net profit attributable to the parent company was 44 million yuan, a year-on-year increase of + 168.37%.
HENGQIANG, the strong basic braking business, has a solid leading position, and the automotive electronics business has blossomed at many points and entered a period of high growth
In 2021, the company achieved a revenue of 3.631 billion yuan, a year-on-year increase of + 24.29%, exceeding our previous expectations; The net profit attributable to the parent company was 44 million yuan, a year-on-year increase of + 168.37%, in line with expectations. Among them, 21q4 achieved a revenue of 1.096 billion yuan, a year-on-year increase of + 15.07%; The net profit attributable to the parent company was 12 million yuan, a year-on-year increase of - 77.68%. The pressure on Q4 profit side is mainly due to the company's withdrawal of bad debt provision for business accounts receivable of associated enterprise Beijing Asia Pacific based on the principle of prudence. 1) Basic braking business: the revenue was 2.877 billion, a year-on-year increase of + 21.46%, surpassing the growth rate of passenger car industry by about 15 PCTs; The gross profit margin was 12.68%, with a year-on-year increase of + 1.27pcts, and both volume and profit increased. During the reporting period, Volkswagen, GM, Nissan and Honda projects were mass produced, and projects such as great wall, FAW Hongqi and Chang'an new energy were designated. In the mainstream independent and joint venture brands, the customer structure of the company has been continuously optimized. As a leading company in China with basic system, the market share has further increased. 2) Automotive electronics business: the revenue was 480 million yuan, a year-on-year increase of + 43.12%, accounting for 13.12% of the total revenue, an increase of 1.73 PCTs over 20 years; The gross profit margin was 16.33%, with a year-on-year increase of + 0.32pcts. The company is the earliest manufacturer of ABS parts developed and industrialized in China. EPB and ESC began mass production in 2016 and IBS began mass production in 2020. During the reporting period, new customers blossomed at many points and increased their speed in an all-round way, and obtained Great Wall Motor Company Limited(601633) esc, ABS and EPB fixed points, Dongfeng Automobile Co.Ltd(600006) esc and EPB fixed points, FAW red flag, leading cars and Faw Jiefang Group Co.Ltd(000800) . The company has 115 newly launched projects, of which 50 are automotive electronics and ADAS projects. Due to the first mover advantage of the company, the resources of different chip schemes are guaranteed, and a lot of experience has been accumulated in the use and verification of chips. It is expected that the company's automotive electronics business will enter a high growth period, and the import substitution is expected to speed up. 3) The company continued to promote refined management, reduce internal costs and increase efficiency. The four fee rate in 2021 was 11.69%, a year-on-year decrease of 0.95 PCTs.
Strengthen R & D and layout the driverless industrial chain, ibsonebox mass production is imminent, and import substitution is comprehensively accelerated
The company arranges driverless in the whole industrial chain, and provides ADAS system solutions that can realize L2 + + from environmental perception, driving decision-making to braking by wire (IBS ESC). In 21 years, the company's R & D expense was 170 million yuan, a year-on-year increase of + 6.92%, and the R & D expense rate has stabilized at about 5% in recent years. At present, the company has completed the trial production of the second-generation wire controlled automatic one box mass production product sample, and is carrying out the sample vehicle integration test with Chongqing Changan Automobile Company Limited(000625) China's head independent vehicle enterprise. The company's line controls the overall layout of the dynamic product matrix. It is expected that no less than 6 models will be matched, and mass production will begin after the winter standard in 2023. At present, the company's automotive electronics products have been recognized by the leading independent automobile enterprises such as great wall, Geely and Chang'an, and the independent brands have risen in an all-round way. The company is expected to achieve "accompanying growth" with its own brands and realize the import substitution of core automotive electronics products.
Investment suggestion: the company's basic braking business is expected to usher in a V-shaped reversal, and the automotive electronics business is expected to accelerate the volume. The 2022e / 2023e revenue and net profit attributable to the parent are predicted to be 4.19/5.47 billion yuan and 122 / 199 million yuan respectively. The 2024e revenue and net profit attributable to the parent are predicted to be 7.35 billion yuan and 305 million yuan respectively. The current market value corresponds to 43 / 26 / 17 times of PE from 2022 to 2024. As a leader in China's braking industry, the company is expected to enjoy a valuation premium and maintain a "recommended" rating.
Risk tips: raw material price fluctuations lead to low gross profit margin expectations, new product expansion is less than expected, exchange rate risk, etc.
