\u3000\u3 China Vanke Co.Ltd(000002) 920 Huizhou Desay Sv Automotive Co.Ltd(002920) )
Event: in 2021, the company achieved an operating revenue of 9.569 billion yuan, a year-on-year increase of 40.75%; The net profit attributable to the parent company was 833 million yuan, a year-on-year increase of 60.75%; Net profit deducted from non parent company was 821 million yuan, with a year-on-year increase of 77.71%. In the first quarter, the company achieved a year-on-year growth of 8.62 billion yuan, an increase of 3.42 billion yuan; The net profit attributable to the parent company was 318 million yuan, a year-on-year increase of 39.22%; Net profit deducted from non parent company was 308 million yuan, with a year-on-year increase of 37.96%.
Supply chain management and production capacity lay the foundation for competitiveness. In 21q4, the company achieved a year-on-year increase of 30.61% in operating revenue, 70.93% in net profit attributable to parent and 45.94% in net profit excluding non attributable to parent. The profit scale in a single quarter exceeded 300 million for the first time and was maintained in 22q1. At the end of 2021 and the end of the first quarter of 2022, the company's inventory increased by 84.81% and 112.19% respectively year-on-year, mainly from the preparation of raw materials. We believe that under the environment of global shortage of materials and rising prices, the company's performance toughness shows the strong variability of its supply chain management and the high flexibility of production capacity, so as to ensure the continuous mass production of new projects and products. At the same time, under the joint action of cost optimization and R & D efficiency improvement, The company's performance is expected to continue the high growth trend.
Sufficient orders support the thickening of performance, and the starting volume of high-value new products is imminent. In 2021, the company obtained new project orders with an annualized value of more than 12 billion yuan, with a year-on-year increase of more than 80%. The revenue of intelligent cockpit business increased by 33.52% year-on-year to 7.893 billion yuan, benefiting from the increase in the proportion of large screen and intelligent products, and the gross profit margin increased to 24.45%. Among them, the second generation cockpit domain controller has been mass produced on a large scale, and the third generation has been designated by many car factories such as great wall and ideal. The revenue of intelligent driving business increased by 94.78% year-on-year to 1.387 billion yuan, obtained new project orders with annual sales of more than 4 billion yuan, and the gross profit margin increased significantly by 9.94 percentage points to 20.78%. The scale effect is prominent. Among them, the annual shipment of ipu01 reached the level of one million sets, ipu02 entered many supporting systems of automobile enterprises, and most projects are expected to scale up in mass production this year; Ipu03 has been equipped with Xiaopeng P7 / P5 for large-scale mass production; The ipu04 with higher value has also been fixed in many car factories, and the ideal model X01 is expected to be delivered in the second half of this year.
The profitability will be further improved and the customer structure will be gradually optimized. In 2021, the company's overall gross profit margin was 24.60%, with a year-on-year increase of 1.21 percentage points; The net interest rate was 8.69%, an increase of 1.07 percentage points year-on-year. In 2021, the company continued to break through new customers such as lutes and PSA stellantis, and obtained orders for core platform projects from many mainstream carmakers such as FAW Volkswagen, SAIC Volkswagen, GAC Toyota, Byd Company Limited(002594) and so on. In 2021, the total sales proportion of the company's top five customers decreased year by year from 64.46% in 2017 to 49.97%. We believe that the steady expansion of customer resources is the embodiment of the company's leading product strength.
Investment suggestion: upgrade to "buy" rating. We believe that the company's new orders accelerate the verification of the continuation of the high boom in the industry. As China's leading tierl, it has strong performance fulfillment, and the optimization of product structure is expected to further enhance its profitability. We estimate that the company's net profit attributable to the parent company from 2022 to 2024 will be RMB 1.282/17.30/2.300 billion respectively, and EPS will be RMB 2.31/3.12/4.14 respectively, corresponding to 49 times, 36 times and 27 times of PE respectively, which will be raised to the "buy" rating.
Risk warning: the mitigation of core failure is not as expected; Weak demand of automobile market; Regulations restrict industrial development, etc.
