\u3000\u3 China Vanke Co.Ltd(000002) 050 Zhejiang Sanhua Intelligent Controls Co.Ltd(002050) )
The net profit attributable to the parent company in 2022q1 was + 25.8% year-on-year, and the performance achieved steady growth. The company achieved a revenue of 4.804 billion yuan in the first quarter of 2022, a year-on-year increase of + 40.9%; The return to the parent was 453 million yuan, a year-on-year increase of + 25.8%; Deduct 402 million yuan of non return to parent, a year-on-year increase of + 25.3%. In 2022q1, the gross profit margin was 23.30%, a year-on-year increase of -3.94pct (it is expected that this is mainly due to the rise in ocean freight, the lag in the price adjustment mechanism after the rise in the price of raw materials, and the increase in the proportion of auto parts and components), a month on month increase of +1.67pct; The net interest rate was 9.45%, with a year-on-year increase of -1.23pct and a month on month increase of + 0.32pct. The expenses were properly controlled. In 2022q1, the sales / management / R & D / financial expense rates were 2.17% / 4.60% / 4.79% / 0.52% respectively, with a year-on-year increase of -2.19pct / – 0.88pct / – 0.13pct / + 0.78pct.
With the large volume of mainstream EV customers, the performance of auto zero is expected to continue to be realized. In 2021, the auto zero business achieved a revenue of 4.8 billion yuan, a year-on-year increase of + 94.5%; The return to the parent was 580 million yuan, a year-on-year increase of + 74.8%; Among them, new energy vehicle products account for 83%; The net interest rate of auto zero business is 12.1%. As the leading enterprise of deep ploughing heat management track, the company expects that the auto parts business will continue to accelerate in 2022. Benefiting from the high prosperity of new energy market, the increase of customer volume and the proportion of component products, as well as the promotion of new production lines, the company’s auto parts business revenue is expected to be + 60% – 70% year-on-year in 2022; In addition, with the expansion of the company’s delivery scale and the improvement of the price linkage mechanism of raw materials, the auto zero business is expected to continue to maintain a high profit level. The refrigeration business is steady, benefiting from the trend of commercial refrigeration increment and energy efficiency upgrading. In 2021, the revenue of air conditioning and refrigeration business was RMB 11.22 billion, a year-on-year increase of + 16.4%; The return to the parent was 1.11 billion yuan, a year-on-year increase of – 5.6%. The refrigeration business of the company is expected to benefit from the increment of commercial refrigeration business driven by the cold chain transportation market and the upward penetration rate of electronic expansion valve under energy efficiency upgrading (expected to increase to more than 60%), and the revenue of air conditioning business is expected to increase by 20% – 30% year-on-year in 2022.
Risk tip: the sales volume of downstream customers is lower than expected, the price of raw materials rises, and the impact of core shortage.
Investment suggestion: maintain the “overweight” rating for the automotive thermal management leader and Tesla core target
The company’s operation is stable. In 2022, the growth of commercial refrigeration business and the continuous realization of auto zero performance. Considering the impact of the epidemic on the output of downstream vehicle enterprises, as well as the impact of raw material costs and exchange rate fluctuations, the net profit in 2022 / 2023 / 2024 was slightly reduced to RMB 2.26528903464 billion (originally RMB 23.15/29.033481 billion in 2022 / 2023 / 2024), the corresponding EPS was RMB 0.63/0.80/0.96, corresponding to RMB 21.1xpe in 2022, maintaining the “overweight” rating.
