Guangting information (301221)
Key investment points
Event: the company released the annual report of 2021. In 21 years, the company realized a revenue of 432 million, a year-on-year increase of 29.3%. Net profit attributable to the parent company / net profit deducted from non attributable to the parent company were 73 million / 64 million respectively, with a year-on-year increase of + 0.34% / - 2.40% respectively. The gross profit margin / net profit attributable to the parent company were 44.8%/17.0% and -5.1%/-4.9% respectively year on year. The cost ratio of sales / management / research was 5.8% / 10.6% / 8.3% respectively, with a year-on-year increase of -0.2/2.0 / - 2.8pcts respectively, and the cost control level was improved. On the whole, the income is in line with expectations, and the gross profit / net profit is under pressure due to the impact of income structure adjustment / high increase in personnel / depreciation of yen and other factors.
Revenue growth was in line with expectations and profits were under pressure. Single Q3 company achieved revenue / net profit of 109 / 18 million respectively, with a year-on-year increase of + 45.9% / - 13.8% respectively; Single Q4 company achieved revenue / net profit of 155 / 31 million respectively, with a year-on-year increase of + 17.5% / + 0.8%. Throughout the year, the company realized a revenue of 432 million (above the median value of the guidelines given in the prospectus), a net profit attributable to the parent company of 73 million (slightly lower than the lower limit of the guidelines given in the prospectus), and a net cash flow from operating activities of about 25 million (year-on-year - 70%).
Revenue structure splitting: the revenue of intelligent cockpit / intelligent electronic control / intelligent network connected vehicle test / mobile map data / intelligent driving reached 177 / 0.58 / 0.79 / 0.58 / 0.13 million respectively, with a year-on-year increase of + 56% / - 26% / + 43% / + 52% / + 27% respectively.
Smart cockpit / smart Internet connected vehicle test / mobile map data benefited from strong demand from customers such as Denso, Visteon, Lianlu, Great Wall norbo / Huawei / anbofu and Magna, driving growth; The electronic control business is affected by the integration of the global R & D center of power products, the core major customer, and the adjustment of organizational structure. The company's new order contracting has experienced short-term fluctuations due to the switching between old and new contracts. This adverse factor has been basically eliminated in early 22.
Analysis of possible reasons for the pressure on gross profit / net profit: the gross profit / net profit of 21h2 company is 43.2% / 18.6% respectively, and - 6.9% / - 6.4% respectively compared with that of 20h2. The analysis is as follows: 1) income structure adjustment: in 21 years, affected by the switching between old and new contracts of power products, the company's high gross profit electronic control business (according to the prospectus, the gross profit margin of customized development of electronic control business in 20 years is about 70%) increased negatively, and the proportion of revenue decreased from 24% to 14%, It is expected to have a certain negative impact on the overall gross profit; 2) Rapid expansion of personnel: the number of 21h1 personnel was 1417, and 1904 at the end of 21, with an increase of about 34% (an increase of about 41% in technical personnel). There is a certain gap between the proficiency of new employees in software development and that of old employees, and the person day quotation of new engineers is expected to be lower than that of familiar ones. At the same time, due to the rapid growth of personnel in the whole year of the 21st century, the employee salary in the operating cost increased by 61% compared with the same period of the previous year, which has had a certain impact on the company's profit performance. 3) Depreciation of Japanese Yen: according to the annual report of 21 years, about 25% of the company's revenue comes from overseas and 21% from Japan. The main settlement currency of Japanese market business is Japanese yen. During the reporting period, the exchange loss caused by the appreciation of RMB reached 10.51 million, which had a certain negative impact on the company's revenue / profit.
The industry's fundamentals of "high CAGR + high fragmentation" remain unchanged, and it is optimistic that the business potential will continue to be realized. In the short term, the adverse factors of switching between new and old orders of electronic control business have been basically eliminated, the process of new customer expansion is smooth, and the electronic control business is expected to return to the track of high growth. The incremental demand of the cabin sector from OEM's such as Toyota, SAIC, great wall and Chang'an is also considerable. Map / test business, as a key supporting of industry intelligence, the full demand from Huawei, Magna, anbofu, Lear and other customers will also help promote growth. In terms of intelligent driving, according to the annual report, the company's fully automatic parking core technology shelf has been basically built, and the supplement of APA and other auxiliary parking core algorithm technology gaps will help the company expand the scope of business cooperation with major customers. In addition, with the resumption of work of Weilai, SAIC and Tesla, the automotive industry chain in Shanghai and its surrounding areas has begun to recover, and the industry dilemma is about to reverse. In the long run, "high gagr in the industry" + "highly fragmented competition pattern" provides considerable development space for the company. The software development capacity of the company's whole domain and whole stack is also scarce, and the continuous precipitation of IP and reusable modules is also expected to contribute to the continuous improvement of profitability and the continuous realization of business potential.
Maintain the profit expectation and "buy" rating of the company: it is estimated that the net profit attributable to the parent company of the company from 2022 to 2024 will be 133 / 192 / 279 million respectively, and the corresponding EPS will be 1.44/2.07/3.01 yuan respectively. Give the company a 60-65x target P / E in 2022, with a target price of 86.49-93.70 yuan, and maintain the "buy" rating.
Risk tip: the overall prosperity of the intelligent automobile industry has declined; The development process of intelligent cockpit business customers is less than expected; The order status of intelligent electronic control business is less than expected; Industry competition intensifies; The impact of the epidemic exceeded expectations
