\u3000\u3 Guocheng Mining Co.Ltd(000688) 208 Autel Intelligent Technology Corp.Ltd(688208) )
Event overview: the company released the annual report of 2021: during this period, the operating revenue was 2.253 billion yuan, with 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 after non deduction was 383 million yuan, a year-on-year decrease of 4.41%.
Affected by many factors such as the rise of exchange rate, freight and raw materials, the real performance exceeded market expectations. According to the announcement, if the impact of the rise in exchange rate, freight and raw materials is excluded (the comprehensive increase in cost is 218 million yuan), during the period, the company achieved a gross profit margin of 65.14%, a year-on-year increase of 0.92 PCT, and a net profit attributable to the parent company of 668 million yuan, a year-on-year increase of 54.19%. It is worth noting that behind this high growth rate, we did not consider the high growth of the company's R & D investment during this period. In 2021, the company invested a total of 522 million yuan in R & D (increased relevant investment in new energy and intelligence), with a year-on-year increase of 84.10% (including 483 million yuan in expense, with a year-on-year increase of 77.64%). If the relevant impact is excluded, the real performance of the company exceeds the market expectation. From the perspective of operating cash flow, the net operating cash flow of the company in 2021 was -144 million yuan, a year-on-year decrease of 125.41% (including the cash paid for purchasing goods and receiving labor services increased by 183.52% year-on-year to 1.657 billion yuan), which was mainly due to the increase of a large number of safety stocks and goods prepared by subsidiaries to cope with global supply chain risks. The book value of the company's ending inventory in 2021 was 967 million yuan, a year-on-year increase of 118.34%, The company has fully considered the tense situation of the subsequent global supply chain and has actively prepared goods, and the subsequent related risks may be gradually reduced. In a single quarter, 2021q4 achieved an operating revenue of 619 million yuan, an increase of 22.72% year-on-year, an increase of 5.12% month on month, a gross profit margin of 58.88% and a month on month increase of 2.99pct, showing a good trend quarter by quarter.
Traditional businesses have shown high growth, and the new energy business is expected to be large in 22 years. In terms of business segments, in 2021, the company's automobile comprehensive diagnostic products, TPMS products, software upgrade services and ADAS products achieved revenue of RMB 1.197 billion, RMB 417 million, RMB 300 million and RMB 229 million respectively, with year-on-year growth of 28.64%, 51.30%, 44.42% and 105.46% respectively. Among them, TPMS and ADAS increased significantly. TPMS: the company has released the first generation tread detector tbe200 and tbe100, which are at the leading level. For the European region, the company has launched two multi protocol pre programming, which realizes the ready to use of loading and covers about 70% of the best-selling models; Adas: the newly developed ADAS calibration and four-wheel alignment two in one equipment ia900 has broken the separation of four-wheel alignment and ADAS calibration in the automotive rear market, greatly improved the efficiency and accuracy of four-wheel alignment and calibration, and won high praise. In addition, it is worth noting that the company has officially released a full range of new energy charging piles and new energy diagnosis series at the end of September 2021. Its products cover a number of DC overcharges such as 7KW AC, 10kW AC and 12KW AC, 20kW DC and 120kw DC fast charging. Under the trend of automobile new energy, the company may welcome the second round of growth curve with its product advantages.
Investment suggestion: as a leading enterprise in the automotive aftermarket, the company is expected to fully benefit from the trend of automotive intelligence and new energy, and usher in the second round of growth curve. We expect the company to realize a net profit attributable to the parent company of RMB 544 / 752 / 998 million in 22-24 years. The current market value corresponds to 24 / 17 times of PE in 22 / 23 years, maintaining the "recommended" rating.
Risk tip: exchange rate risk; Risk of freight rise; The expansion of new energy business is less than expected
