\u3000\u3 Shengda Resources Co.Ltd(000603) 035 Jiangsu Changshu Automotive Trim Group Co.Ltd(603035) )
[matters]
The company released its annual report for 2021: in 2021, it achieved an operating revenue of 2.663 billion yuan, a year-on-year increase of 20.06%; The net profit attributable to the parent company was 420 million yuan, a year-on-year increase of 16.15%; The net profit deducted from non parent company was 348 million yuan, with a year-on-year increase of 17.61%. Among them, 2021q4 achieved an operating revenue of 856 million yuan, an increase of 11.12% year-on-year and 42.45% month on month; The net profit attributable to the parent company was 143 million yuan, an increase of 1.87% year-on-year and 121.99% month on month; The net profit deducted from non parent company was 95 million yuan, a year-on-year decrease of 14.60% and a month on month increase of 66.93%.
[comments]
The performance in the fourth quarter was excellent, and the revenue and profit reached a record high in a single quarter. The company’s revenue and net profit attributable to the parent company in 2021 were 2.663 billion yuan and 420 million yuan respectively, with a year-on-year increase of 20.06% and 16.15% respectively, mainly due to the mass production of new investment companies and related projects. Among them, the performance in the fourth quarter was excellent, and the revenue and net profit attributable to the parent company were 856million yuan and 143million yuan respectively, both hitting a record high in a single quarter. The gross profit margin of the company in the fourth quarter was 24.32%, with a year-on-year increase of 3.43pct and a month on month increase of 1.79pct. Different from the whole industry, the company’s gross profit margin increased month on month, mainly due to the increase in sales of new energy customers with high gross profit margin in the fourth quarter. In the fourth quarter, the financial structure was further optimized, and the overall rate of three fees was 9.12%, a decrease of 3.52pct month on month; The R & D expense rate was 3.97%, with a month on month increase of 1.50pct.
The new energy business is growing rapidly, and the layout of automobile intelligent cockpit field. The company is mainly engaged in R & D, production and sales of automotive interior parts assembly products. It is one of the main suppliers in China’s automotive interior parts industry. The main customers include FAW Volkswagen, Beijing Benz, brilliance BMW, Chery, FAW Hongqi, Great Wall Motor Company Limited(601633) and other well-known vehicle manufacturers. Looking ahead to the industrial layout and consolidating the new energy track, the company has entered new energy customers such as Mercedes Benz EQB, BMW EV, Volkswagen MEB, Tesla, ideal, Xiaopeng, Weilai, Nezha, Zero run, arcfox, Chinese express, Chery new energy, Jaguar Land Rover in the UK, zoox in North America and so on. During the reporting period, the company invested a large number of new projects in R & D or mass production, of which the revenue of new energy was 652 million yuan, accounting for 24.5% of the total revenue, an increase of 131% compared with 10.6% of the total revenue in 2020. The company deeply binds the head new energy vehicle enterprises, and the proportion of new energy business will be further increased in the future. During the reporting period, the company not only exchanged and explored new technologies in the field of intelligent cockpit with main engine manufacturers such as Mercedes Benz, BMW and weixiaoli. It also innovated with Huawei and FAW Fusheng to get through the systematic health management scheme of intelligent cockpit and personal wear through harmonyos, so as to bring a comprehensive upgrade of audio-visual and perception to the cockpit. We believe that through the cooperation with Huawei, the company has great development potential in the cockpit field in the future.
[investment suggestions]
The company is one of the major suppliers in China’s automotive interior decoration industry. Its products mainly include door inner guard assembly, instrument panel assembly, auxiliary instrument panel assembly, column assembly, trunk assembly, coat rack assembly, etc. Under the trend of vehicle electrification, the company prospectively arranges the new energy vehicle track, binds the head new energy vehicle enterprises, and has high growth in the future. It is estimated that the operating revenue of the company from 2022 to 2024 will be RMB 3346 / 4289 / 5399 million respectively, the net profit attributable to the parent company will be RMB 505 / 619 / 748 million respectively, the corresponding EPS will be RMB 1.29/1.44/1.56/share respectively, and the corresponding PE will be 11.69/10.50/9.70 times respectively. At present, the PE valuation level of the company is about 10 times, which is far lower than the average level of the auto parts industry. Considering that the company’s new energy business is in the fast lane of growth, the company is rated as “overweight”.
[risk tips]
The demand of downstream customers is less than expected;
New business expansion is less than expected;
Raw material price fluctuation risk.
