\u3000\u3 China Vanke Co.Ltd(000002) 050 Zhejiang Sanhua Intelligent Controls Co.Ltd(002050) )
Event: the company released 2022q1 quarterly report. In the first quarter, the revenue was 4.8 billion, a year-on-year increase of + 40.94%, and the net profit attributable to the parent company was 453 million, a year-on-year increase of + 25.81%. Revenue achieved rapid growth.
1. The revenue reached a record high in a single quarter, and the two round business continued to develop: the company's Q1 revenue reached a record high of 4.8 billion, mainly due to the growth of the two major industries of refrigeration, air conditioning, electrical parts and auto parts. Q1 gross profit margin was 23.3%, year-on-year -3.94pct, month on month + 1.67pct. We believe that raw materials and freight have a year-on-year impact of about 2 points, and another 1.87 points come from changes in accounting standards (see details in the first quarterly report); At the same time, the gross profit margin has increased compared with the fourth quarter, indicating that the company also realized the partial transfer and control of raw material prices in the first quarter. The fourth fee was 12.08%, with a year-on-year increase of -2.42 PCT, mainly due to the decrease of 1.89 PCT in sales rate due to changes in accounting standards. The net interest rate attributable to the parent company was 9.43%, with a year-on-year increase of -1.13pct. Under the influence of the epidemic situation, raw materials and other comprehensive factors, it remained relatively stable. It can be seen that the company has excellent operation and management ability.
2. Continue to deepen globalization, and the technology + management ability is at the top of the industry: after more than 30 years of development, the company has established an industry-leading position in the field of global refrigeration appliances and automotive thermal management. The market share of the company's air conditioning electronic expansion valve, four-way directional valve, solenoid valve microchannel heat exchanger, automotive electronic expansion valve, new energy vehicle thermal management integrated components, Omega pump and other products is the first in the world. With the rapid penetration of new energy, the company has entered the automotive field from parts and gradually developed into components and subsystems, and has successfully developed various global auto enterprises, including Volkswagen, Mercedes Benz, BMW, Volvo, Toyota, GM, Geely, Byd Company Limited(002594) , SAIC, Weilai, Tesla and other customers. In the pace of globalization, the company's major production bases around the world have been completed and put into operation, including Shaoxing Binhai base, North America Mexico base, Europe Poland base, Vietnam base and other further expansion and transformation are in progress. The leading position of the company's thermal management is still stable, and hedging is carried out by means of hedging and long-term foreign exchange settlement against risk factors such as raw materials and exchange rate. It can be seen that the company's management + technical strength is in the first-class position in the industry.
Investment strategy: we expect the company's net profit attributable to the parent company to be 2.3/2.7 billion in 22 / 23 years. At present, the stock price corresponds to 21 times of the company's dynamic PE in 2022, maintaining the company's "buy" rating.
Risk warning: the sales volume of customers is lower than expected, and the price of raw materials continues to deteriorate
