\u3000\u3 Guocheng Mining Co.Ltd(000688) 208 Autel Intelligent Technology Corp.Ltd(688208) )
Event:
The company announced its 2021 annual report: in 2021, the company achieved a revenue of 2.254 billion yuan, a year-on-year increase of 42.84%; The net profit attributable to the parent company was 439 million yuan, a year-on-year increase of 1.31%; The net profit deducted from non parent company was 383 million yuan, a year-on-year decrease of 4.41%.
Comments:
1. The revenue of new products increased, and the US and European markets were the main drivers of growth
The company’s single quarter revenue in 2021q4 increased by 22.72% year-on-year, basically the same as Q3. The revenue growth in the second half of 2021 slowed down compared with the first half of the year. We believe that the main reason is that the company’s revenue base in the second half of 2020 is high. In terms of the company’s revenue and sub products in 2021, the company’s traditional automotive diagnostic products still maintained rapid growth, realizing a revenue of 1.197 billion yuan, a year-on-year increase of 28.64%; The revenue of TPMS products, software upgrade services, ADAS products and other new products increased significantly, with a year-on-year growth rate of 51.30%, 44.42% and 105.46% respectively. In terms of regions, the United States and Europe are the company’s main markets and growth drivers. In 2021, the company’s domestic revenue in the United States / Europe / China was 1.047/3.28/241 billion yuan respectively, with a year-on-year growth rate of 50.23% / 52.23% / 32.05% respectively.
2. After excluding short-term uncontrollable factors, the net profit attributable to the parent company increased by 54%, and increased R & D investment in intelligence and new energy
In 2021, the company’s gross profit margin was 57.65%. After retroactive adjustment to 2020, it decreased by 5.18pct year-on-year, which was mainly affected by uncontrollable factors such as the appreciation of RMB, the rise of international freight and spot prices. After excluding these effects, the gross profit margin in 2021 was 63.75%, increased by 0.92pct year-on-year, and the net profit attributable to the parent company increased by 54.19% year-on-year. In 2021, the company increased its layout in the direction of new energy and intelligence, with a cost rate of 45.50%, of which the cost rates of sales, management and R & D were 10.54%, 10.76% and 21.43% respectively, with year-on-year changes of – 1.6pct, + 2.22pct and + 4.20pct respectively. The increase in management expenses was mainly due to the share based payment expenses generated by the company’s share incentive of about 79.75 million yuan, with a year-on-year increase of about 56.11 million yuan.
3. Launch new energy products and open a new growth curve, which is expected to start in large quantities in 2022
In 2021, on the basis of maintaining the iterative upgrading of the original products, the company comprehensively laid out the new energy vehicle maintenance tool product line and charging product line, and provided overall solutions for the charging, maintenance and other needs of new energy vehicles. 1) electric vehicles are expected to grow rapidly and become a new energy source; 2) Starting from diagnosis and maintenance tools, electric vehicles are expected to provide significant increment for the company;
3) charging pile will become the company’s benchmark product facing the new energy era, with four core technology support and construction advantages. We expect the company’s new energy products to contribute to the performance increment in 2022.
Profit forecast and investment suggestions: considering the epidemic situation in China in 2022, we adjusted the profit forecast according to the company’s annual report. We adjusted the company’s net profit from 650 / 892 million yuan to 540 / 771 million yuan from 2022 to 2023. It is estimated that the net profit in 2024 will be 1.051 billion yuan. The corresponding net profit of the company from 2022 to 2024 is 24.27/17.00/12.47 times of the current market value PE respectively, maintaining the “buy” rating.
Risk warning: the promotion of the company’s new energy products is not as expected; The company’s R & D investment is higher than expected; Systemic risk.
