\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 689 Ningbo Tuopu Group Co.Ltd(601689) )
Event overview: on April 22, 2022, the company issued the announcement of Q1 performance for 22 years. During the reporting period, the company achieved a revenue of 3.745 billion yuan, a year-on-year increase of + 54.34%; The net profit attributable to the parent company was 386 million yuan, a year-on-year increase of + 56.84%.
1q22 high performance growth and continuous restoration of profitability
The 1q22 revenue of the company was 3.745 billion yuan, a year-on-year increase of 54.4%; The net profit attributable to the parent company was 386 million yuan, a year-on-year increase of + 56.9%, and the performance was in line with our previous expectations. 1q22’s net profit margin was 10.31%, with a year-on-year increase of + 0.17pcs and a month on month increase of + 3.05pcs. Under the multiple effects of the epidemic and the rise in the price of raw materials, the company’s profitability can still be repaired continuously, demonstrating the company’s business resilience. The company’s profit margin increased significantly month on month, mainly due to: 1) gross profit margin month on month repair: affected by upstream raw materials, the company’s gross profit margin was slightly under pressure. 1q22’s gross profit margin was 20.77%, with a year-on-year increase of -1.15pcs, but the overall gross profit margin continued to repair, with a month on month increase of + 3.22pcs. 2) The ability of expense control has been improved: benefiting from the continuous high growth of the company’s revenue and the dilution of the four fee rate, the four fee rate of 1q22 company is 7.93%, year-on-year -1.18pcts and month on month -0.59pcts. The expense rate is diluted to further improve the overall profitability of the company.
The 8-module strategy promotes the value of single car, tier0 5. The cooperation mode continues to advance
On the product side, the company continued to promote the platform strategy and formed a strategic layout of eight modules with “shock absorption + interior decoration” as the fist product and “lightweight + thermal management + chassis + suspension + intelligent driving + Intelligent cockpit” as the new growth point. Intelligent products were introduced one after another and the product structure continued to be optimized. In terms of volume and price, the company’s chassis system revenue in 2021 was 2.624 billion yuan, accounting for 23.82%, the unit price was 935 yuan / set, and the gross profit margin was 17.68%; The revenue of automotive electronics is 183 million yuan, accounting for 1.66%, the unit price is 265 yuan / set, and the gross profit margin is 26.3%; The thermal management revenue is 1.285 billion yuan, accounting for 11.66%. The unit price is 2500 yuan / set, and the gross profit margin is 17.83%. The unit price and gross profit margin of new products are high. The eight product lines increase the single vehicle value to 30000 yuan, which is expected to promote the rapid growth of the company’s operating revenue and net profit. The company’s EVP and IBS projects are expected to reach production in May 2022. Mass production preparations will be made for air suspension, Polish chassis and thermal management projects. Capacity expansion + high self-study will continue to deepen the company’s competitiveness. On the client side, the company actively cooperates with new forces such as Tesla, rivian and Wei Xiaoli, as well as technology enterprises such as Huawei and Xiaomi to explore tier0 The 5-level cooperation mode lays the foundation for the company to realize the supporting cooperation of millions of vehicles. With the automobile industry entering a stagflation period in the second half of the year, the opening of the replenishment cycle will drive the improvement of the company’s performance. We believe that with the resumption of 2022h2 and the implementation of new production capacity, the company is expected to fully benefit from the sales growth of major customers such as Tesla.
Investment suggestion: Based on the continuous promotion of the company’s platform strategy, the implementation of automotive electronics business is accelerated, and the net profit attributable to the parent company of 2022e / 2023e / 2024e is RMB 1.463/2.013/2.582 billion. The current market value corresponds to 39 / 28 / 22 times of PE from 2022 to 2024. The company has actively laid out its auto electronics business and has now entered the harvest period. As a rare leading company of auto parts platform in China, the company is expected to enjoy a valuation premium and maintain the “recommended” rating.
Risk tips: raw material price fluctuations lead to low expectations of gross profit margin, less than expected expansion of new products, less than expected launch of new production capacity, less than expected orders from key customers, exchange rate risk, etc.
