\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 965 China Automotive Engineering Research Institute Co.Ltd(601965) )
Event overview
The company released the 2021 annual report and the first quarterly report of 2022: the annual revenue of 2021 was 3.84 billion yuan, a year-on-year increase of + 12.2%, and the net profit attributable to the parent was 690 million yuan, a year-on-year increase of + 23.9%; Among them, the revenue of 2021q4 was 1.24 billion yuan, a year-on-year increase of + 21.1%, a month on month increase of + 57.0%, and the net profit attributable to the parent company was 200 million yuan, a year-on-year increase of – 10.1% and a month on month increase of – 13.0%. 2022q1 achieved a revenue of 560 million yuan, a year-on-year increase of – 33.2%, a month on month increase of – 54.8%, and a net profit attributable to the parent company of 130 million yuan, a year-on-year increase of + 9.9% and a month on month increase of – 35.0%.
Analysis and judgment:
Technical service business force 21q4 revenue, deduction of non return to parent, a single quarter high
Revenue side: driven by the business growth of automobile technical services, rail transit and special auto parts, automobile gas system and key parts (the revenue in 2021 was + 32.3%, + 28.0% and + 35.7% respectively year-on-year, of which the revenue of new energy and intelligent network service in automobile technical services increased by 119.1% year-on-year). In 2021, the company achieved an overall revenue of 3.84 billion yuan, a year-on-year increase of + 12.2%, exceeding the original revenue target of 3.8 billion yuan. Among them, the revenue of 2021q4 was 1.24 billion yuan, with a year-on-year increase of + 21.1% and a month on month increase of + 57.0%, a record single quarter revenue.
Profit side: in 2021, the company’s overall gross profit margin was 33.4%, with a year-on-year increase of + 2.7pct, mainly due to the improvement of business structure and the increase of the proportion of technical service business. Driven by the growth of revenue and gross profit margin, the net profit attributable to the parent company in 2021 was 690 million yuan, a year-on-year increase of + 23.9%, and the net profit not attributable to the parent company was 570 million yuan, a year-on-year decrease of + 15.9%. In 2021q4, the net profit attributable to the parent company was 200 million yuan, with a year-on-year increase of – 10.1% and a month-on-month increase of – 13.0%. The net profit not attributable to the parent company was 170 million yuan, with a year-on-year increase of + 5.6% and a month-on-month increase of + 6.3%. The net profit attributable to the parent decreased month on month, mainly due to the relatively high 20q4 other income and 21q3 asset disposal income (shantytown reconstruction asset disposal). From the perspective of deducting non attributable to the parent, it is actually a single quarter high.
Expense side: in 2021, the company’s sales, management, R & D and financial rates were + 2.7% / + 7.3% / + 4.9% / – 0.5% respectively, with a year-on-year increase of + 0.3, + 0.7, + 0.0 and + 0.5pct respectively. The increase in management rates was mainly affected by the increase in the scope of consolidation, the enjoyment of social security relief in 2020 and the increase in equity incentive costs.
22q1 equipment manufacturing business affects revenue and technical service business contributes profit
Revenue side: in 2022q1, the company’s overall revenue reached 560 million yuan, with a year-on-year increase of – 33.2% and a month on month decrease of – 54.8%. The decline was mainly affected by the reduction of equipment manufacturing business revenue. In terms of business segments: 1) the revenue of automobile technical service business was 500 million yuan, a year-on-year increase of + 27.1%, maintaining rapid growth; 2) The revenue of equipment manufacturing business was RMB 60 million, with a year-on-year increase of – 87.0%. The main reasons are as follows: first, the terminal demand of Q1 engineering vehicle shrank significantly. In order to comply with the current situation of the industry, the company strengthened risk management and controlled the business scale, resulting in a sharp decline in the revenue of special vehicle sector; Second, due to the influence of relevant policies of key customers, the delivery and settlement progress of rail transit and special auto parts business was delayed, resulting in a year-on-year decline in revenue.
Profit side: the growth and proportion of technical service business revenue have formed a strong support for the profit side. The overall gross profit margin of the company in 2022q1 reached 45.2%, with a year-on-year increase of + 17.0pct and a month on month increase of + 9.3pct, driving the net profit attributable to the parent company to reach 130 million yuan, with a year-on-year increase of + 9.9% and a month on month increase of – 35.0%. Compared with the same period, the revenue side increased instead of decreasing.
Annual target: according to the company’s 2021 annual report, the company’s business target in 2022 is operating revenue of 4.3 billion yuan and total profit of 810 million yuan.
Rising volume and price growth attributes highlight the long-term layout of new energy network detection
Short term: 1) the company’s technical service business will benefit from the implementation of policies such as the disclosure of national six environmental protection information of parallel imported vehicles, the special treatment of “large ton and small standard”, the fourth stage standard of non road mobile machinery, and the company’s performance is directly linked to the number of vehicle inspections; 2) With the continuous construction and operation of newly approved urban rail transit projects, the market scale of rail transit business has maintained stable growth; 3) The production, sales and market penetration of new energy vehicles have increased rapidly, and the new energy vehicle system and key parts industry have ushered in better development opportunities.
Long term: 1) the transformation of automotive electric intelligence is accelerated, the competition among manufacturers is intensified, the iteration cycle of vehicle development is shortened, the launch speed of new vehicles is accelerated, the superposition of electric intelligence leads to the increase of testing items, and the company is in a high-quality track with both volume and price; 2) The company continues to deploy new energy, intelligent network connection and hydrogen energy testing, which is expected to continue to benefit from the wave of automotive new energy and intelligence; 3) Relying on the long-term accumulation in the field of automotive technical services, the company innovates and establishes the “index + data” development model, accelerates the transformation of products and data, and is expected to form a new business growth pole in the long term.
Investment advice
High quality and scarce targets in the automobile testing industry have double barriers of assets and qualification; The company’s performance is decoupled from the sales volume of the industry. The accelerated launch of new cars and product upgrading are expected to drive the company’s performance growth. In view of the fact that the closing profit of the parent company is adjusted from RMB 1.29 billion to RMB 1.48 billion in 2022, and the net profit of the parent company is expected to be adjusted from RMB 1.19 billion to RMB 1.48 billion in 2022, and the net profit of the parent company is expected to be adjusted from RMB 1.48 billion to RMB 1.48 billion in 2022, and the net profit of the parent company is expected to be adjusted from RMB 1.48 billion to RMB 4.52 billion in 2022, respectively, Maintain the “overweight” rating.
Risk tips
Policy promotion is less than expected; Rising prices of raw materials; The development of intelligent networking is less than expected.
