\u3000\u3 China Vanke Co.Ltd(000002) 138 Shenzhen Sunlord Electronics Co.Ltd(002138) )
2022q1 performance basically met expectations and maintained the "buy" rating
In the first quarter of 2022, the company achieved a revenue of 1.008 billion yuan, a year-on-year decrease of 4.55%, a net profit attributable to the parent company of 163 million yuan, a year-on-year decrease of 14.76%, and a deduction of non net profit of 150 million yuan, a year-on-year decrease of 18.16%, which is basically in line with expectations. China's epidemic increased demand and supply chain uncertainty. We lowered the company's profit forecast for 20222024. It is estimated that the net profit attributable to the parent company in 20222024 will be 883, 1134 and 1449 million yuan (the previous value is 926 / 1198 / 1543 million yuan), EPS will be 110, 141 and 1.80 yuan (the previous value is 1.15, 1.49 and 1.91 yuan), and the current share price corresponding to PE will be 21.3, 16.5 and 13.0 times. Based on the rapid growth of the company's automotive electronics business, we are still optimistic about the company's medium and long-term development trend and maintain the "buy" rating.
Automotive electronics bucked the trend of high growth, and the gross profit margin rebounded significantly
In 2021q1, the revenue of automotive electronics business was 90.7 million yuan, with a year-on-year increase of + 51.3% and a month on month increase of + 11.2%, both of which achieved contrarian growth. The revenue from signal processing, power management, ceramics and other businesses was 417 million yuan, 350 million yuan and 150 million yuan respectively, with a year-on-year increase of - 11.2%, - 7.4% and + 1.5% respectively. The gross profit margin in the first quarter was 36.4%, up significantly from 29.1% in the fourth quarter, basically flat year-on-year. The main reasons for the rebound of gross profit margin are: (1) the change of product structure, and the proportion of ceramic business income with low gross profit decreased from 18.6% in the fourth quarter to 14.9%; (2) The proportion of high value-added products increased; (3) Expansion of emerging markets and improvement of management efficiency.
The number of days of inventory turnover has increased, and the repurchase and increase of management's holdings have strengthened the company's confidence in development
The cost control in the first quarter was reasonable. The total cost rate of management, sales, R & D and finance in a single quarter was 12.6%, down 4.3 and 1.7 percentage points respectively from 16.9% in 2021q4 and 14.3% in 2021q1. The turnover rate of fixed assets decreased to 26.8% in the single quarter, with a month on month decrease of 2.6pcts and a year-on-year decrease of 6.0pcts. The inventory has increased. The inventory turnover days in 2022q1 are 146.5 days, up from 112.9 days in the fourth quarter and 90.8 days in 2020q1. On April 19, 2022, the company announced that it planned to repurchase the company's shares, with an amount of no less than 200 million yuan and no more than 300 million yuan, and the repurchase price of no more than 35 yuan / share. At the same time, the company's management shareholding platform is growing on the 10th, and the proposed increase in shareholding is no less than 50 million yuan and no more than 100 million yuan. Share repurchases and management holdings have strengthened executives' recognition of the company's value and confidence in sustainable development in the future.
Risk warning: the localization progress of components is slow; Downstream terminal demand is weak.
