Investment summary:
Talk every Monday: Tesla hand over the bright Quarterly Report
Tesla released the first quarter financial report of 2022: the revenue of 22q1 company reached US $18.756 billion, a year-on-year increase of 81%; The net profit was US $3.318 billion, a year-on-year increase of 658%. Under the influence of the current global epidemic, Tesla‘s quarterly performance still achieved higher than expected growth.
The overall gross profit margin was 29.1%, and the gross profit margin of automobile business was as high as 32.9%, with a year-on-year increase of 6.36 percentage points, another record high, mainly due to the rise in price. In March alone, Tesla China had three price increases, with an average price increase of more than 10000 yuan each time. The price increase of models has effectively alleviated the cost pressure. Under the effect of scale effect, Tesla’s gross profit of single vehicle continues to grow, the amortization of expenses is reduced, and the net profit of single vehicle is as high as US $15000.
Tesla has carried out vertical integration transformation in key areas to improve efficiency and reduce costs through a series of innovations. The first integrated casting technology used on modely. The integrated CTC technology that integrates the battery directly into the chassis and the 4680 battery that improves efficiency and reduces cost were also pioneered by Tesla.
Tesla’s global auto inventory in the first quarter was 3 days, down 63% from 8 days in the same period last year. Global delivery is expected to increase by more than 50% in 2022, exceeding 1.5 million vehicles.
Tesla is not only the first new energy vehicle enterprise in the industry to achieve continuous profitability, but also further consolidating its first mover advantage. Constantly refresh the ceiling of the industry through price increase strategy and cost control. The increase of Tesla’s market share will also drive the development of upstream parts manufacturers. We continue to be optimistic about the development of enterprises related to Tesla’s industrial chain. It is suggested to pay attention to Contemporary Amperex Technology Co.Limited(300750) , Fuyao Glass Industry Group Co.Ltd(600660) , Ningbo Tuopu Group Co.Ltd(601689) , Shenzhen Kedali Industry Co.Ltd(002850) , Zhejiang Sanhua Intelligent Controls Co.Ltd(002050) , Lijin technology, etc.
Market review:
As of the closing on April 22, the auto sector was – 2.9%, and the CSI 300 index was – 4.2%. The decline of the auto sector was 1.3 percentage points lower than that of the CSI 300 index. From the perspective of sector ranking, the rise and fall of the automobile industry last week ranked ninth among the 31 sectors of Shenwan, with a fair performance. Since the beginning of the year, the automobile sector has been – 27.3%, ranking 25th among the 31 sectors of Shenwan.
Performance of weekly rise and fall of sub sectors: most sectors fell, with motorcycles (2.8%) and other transportation equipment (2%) as the rising sectors, while commercial trucks (-6.9%), other auto parts (-4.9%), and auto dealers (-4.5%) led the decline.
Up and down performance of sub sectors since the beginning of the year: all sectors have fallen to varying degrees, with automotive electronic and electrical systems (- 38.6%), commercial trucks (- 35%), tire hubs (- 32.7%) and other auto parts (- 32.1%) leading the decline.
Top five gainers and Losers: Ningbo Shuanglin Auto Parts Co.Ltd(300100) , Ningbo Fangzheng Automobile Mould Co.Ltd(300998) , Zhongjie (Jiangsu) Technology Co.Ltd(301072) , Ningbo Hengshuai Co.Ltd(300969) , Chengdu Haoneng Technology Co.Ltd(603809) .
The top five in terms of rise and fall: Cimc Vehicles (Group) Co.Ltd(301039) , Giti Tire Corporation(600182) , Nanning Baling Technology Co.Ltd(002592) , Hyunion Holding Co.Ltd(002537) , Shinry Technologies Co.Ltd(300745) .
Investment strategy and key recommendations this week:
The automobile sector should pay more attention to the companies whose profits are determined to grow and the companies whose valuation center is improved. At the same time, it is suggested to pay attention to the problem of core shortage and the opportunities for vehicle and traditional parts enterprises in the improvement stage. Therefore, we suggest paying attention to: competitive Vehicle Enterprises: Great Wall Motor Company Limited(601633) , Geely Automobile, Guangzhou Automobile Group Co.Ltd(601238) , Byd Company Limited(002594) , etc. High quality enterprises in the parts sector with reasonable valuation at present: Ningbo Tuopu Group Co.Ltd(601689) , Zhejiang Shuanghuan Driveline Co.Ltd(002472) , Mingxin Automotive Leather Co.Ltd(605068) , Bethel Automotive Safety Systems Co.Ltd(603596) , Changzhou Xingyu Automotive Lighting Systems Co.Ltd(601799) , Anhui Zhongding Sealing Parts Co.Ltd(000887) , Hunan Oil Pump Co.Ltd(603319) , Wuhan Lincontrol Automotive Electronics Co.Ltd(688667) , etc; Technical service enterprises that are not significantly affected by production and sales fluctuations and have strong growth certainty: China Automotive Engineering Research Institute Co.Ltd(601965) etc.
Recommended combination this week: Byd Company Limited(002594) 20%, Wuhan Lincontrol Automotive Electronics Co.Ltd(688667) 20%, Zhejiang Shuanghuan Driveline Co.Ltd(002472) 20%, China Automotive Engineering Research Institute Co.Ltd(601965) 20% and Mingxin Automotive Leather Co.Ltd(605068) 20%.
Risk tip: the car sales volume is lower than expected; The implementation of stimulus policies for the automobile industry was less than expected; The risk of intensified market competition; Risk of shortage of key raw materials such as chips and rising cost of raw materials; The epidemic control was less than expected.
