\u3000\u3 China Vanke Co.Ltd(000002) 892 Keli Motor Group Co.Ltd(002892) )
Event:
The company officially disclosed the annual report of 2021 and the first quarterly report of 2022 on April 24, 2022. In 2021, the company achieved a total revenue of 1.435 billion yuan, a year-on-year increase of 44.44%; The net profit attributable to the parent company was 103 million yuan, with a year-on-year increase of 4.39%, and the basic EPS was 0.49 yuan / share. In the first quarter of 2022, the company achieved a revenue of 295 million yuan, a year-on-year increase of 2.68%; The net profit attributable to the parent company was 16 million yuan, a year-on-year decrease of 24.14%; The basic EPS is 0.07 yuan / share. The company’s performance is in line with expectations.
Comments:
Affected by the rise of raw materials and the appreciation of RMB, the profitability of the company is under pressure in the short term
In 2021, affected by the sharp rise in the prices of upstream raw materials such as copper, aluminum, iron and zinc and the appreciation of RMB, the gross profit margin of the company decreased by 2.66pct to 18.95% year-on-year, and the net profit margin decreased by 2.74pct to 7.15% year-on-year. In the face of this situation, the company reduces the cost pressure by raising the product sales price, reducing the production cost, locking the foreign exchange in the long term and other ways. From the four quarters, the company passed the trough of gross profit margin in the first half of 2021, and the gross profit margin rebounded steadily in the second half of 2021. From the first quarter to the fourth quarter, the company’s comprehensive gross profit margin was 17.1% / 19.11% / 19.6% / 19.51% respectively.
R & D investment has been increased and breakthroughs have been made in the development of new products
The company continued to increase R & D investment, and the R & D expenses increased by 125079 million yuan compared with the same period of last year, with a year-on-year increase of 28.27%. The company’s new generation of high-performance V6 servo system has been successfully promoted in new application fields, and has cooperated with high-end customers. It has become a supplier of mobile phone production and testing equipment in Apple’s industrial chain. Stepping motor has also reached batch cooperation with Hangzhou Hikvision Digital Technology Co.Ltd(002415) and Yushi technology, becoming a new business growth point of the company.
Increase production and expand production capacity
In August 2021, the company raised about 500 million yuan by means of non-public offering of shares, and the raised funds were used for the construction project of intelligent motor and drive control system. In addition, it is proposed to use no more than RMB 90 million to purchase the land use right located in Tonghu ecological wisdom zone of Huizhou City for the construction of Keli Motor Group Co.Ltd(002892) motor and drive control system production and R & D headquarters project. In the future, the company’s product capacity, production scale and delivery assurance capacity will be greatly improved.
Profit forecast and investment suggestions
Considering that the impact of the price rise of upstream raw materials has not been eliminated this year, we expect the company’s operating revenue to be RMB 1.944 billion and the net profit attributable to the parent company to be RMB 137 million and RMB 192 million respectively from 2022 to 2023 (the previous value is RMB 179 million and RMB 227 million). At the same time, we also increase the profit forecast for 2024. The revenue is RMB 3.42 billion, the net profit is RMB 258 million, the corresponding EPS is RMB 0.61/0.85/1.15/share and the corresponding PE is 27x / 19.3x/14.4x. Maintain the “buy” rating.
Risk tips
1) upstream raw material price rise risk; 2) Exchange rate fluctuation risk; 3) Industry competition intensifies risks.
