\u3000\u3 China Vanke Co.Ltd(000002) 050 Zhejiang Sanhua Intelligent Controls Co.Ltd(002050) )
The performance is better than the market expectation. In the first quarter of 2022, the operating revenue was 4.804 billion yuan, with a year-on-year increase of 40.9%. The net profit attributable to the parent company was 453 million yuan, with a year-on-year increase of 25.8%. The net profit after deduction was 402 million yuan, with a year-on-year increase of 25.3%. The rapid growth of operating revenue mainly benefited from the booming supply and demand of refrigeration, air conditioning, electrical parts and auto parts industry.
The gross profit margin decreased year-on-year, but improved month on month, and the expense rate improved. The gross profit margin in the first quarter was 23.3%, with a year-on-year decrease of 3.9 percentage points, which was affected by the change of accounting standards. According to the new standards, it decreased by 2.1 percentage points year-on-year. It is expected to increase by 1.7 percentage points month on month, dragged down by the rise of bulk raw materials and freight. After adjustment according to the new standards, the period expense rate is 12.1%, with a year-on-year decrease of 0.5 percentage points, of which the sales expense rate is 2.2%, with a year-on-year decrease of 0.3 percentage points, the management expense rate is 4.6%, with a year-on-year decrease of 0.9 percentage points, the R & D expense rate is 4.8%, with a year-on-year decrease of 0.1 percentage points, the financial expense rate is 0.5%, with a year-on-year increase of 0.8 percentage points, which is expected to be affected by the changes. The net cash flow from operating activities in the first quarter was 126 million yuan, a year-on-year decrease of 33.7%, which was due to the increase of sales revenue, resulting in the net increase of receivables in the credit period and the increase of labor costs.
Actively explore new energy heat management cooperation, and the income and proportion of new energy business are expected to increase. The company locates in the field of thermal management of new energy vehicles, starts from parts and develops into components and subsystems, actively develops comprehensive business cooperation with Chinese new forces, traditional car enterprises and joint venture car enterprises, and becomes a customer partner such as Volkswagen, Mercedes Benz, BMW, Geely, Byd Company Limited(002594) , SAIC and Weilai. The company has orderly promoted the construction of coastal plants in Mexico and Shaoxing. By the end of 2021, all the projects with raised funds have been accepted and put into operation. The mass production of new projects will promote the rapid increase of operating income and share of new energy heat management business. In the context of the rise in raw materials and freight, the company promotes product price linkage with downstream auto enterprises, which is expected to better alleviate the pressure of raw material price rise.
Expand the new field of commercial refrigeration and kitchen electricity, and the investment of convertible bond will enhance the competitiveness. Focusing on the development opportunities of energy efficiency upgrading, refrigerant switching and consumption upgrading, the company has expanded its product series from household air conditioning and refrigerator components to commercial air conditioning and commercial refrigeration, and actively expanded kitchen electrical parts. Yaweko’s business has achieved profitability by relying on the popularization and acceleration of dishwashers in China and the transformation of internal supply chain; The company increased the construction of overseas factories in Vietnam and Mexico, improved operational efficiency, and promoted the relocation of Daming factory in the commercial field, laying a solid foundation for the commercial development opportunities brought by the consumption upgrading of the Chinese market in the future. In 2021, the company issued convertible bonds to raise 3 billion yuan, mainly for the construction and transformation of refrigeration and air conditioning control components, which is expected to promote the development of products in the direction of high efficiency and energy saving and further enhance their competitiveness.
Profit forecast and investment suggestions
It is predicted that the eps0 will be from 2022 to 202459, 0.70 and 0.80 yuan. The comparable company is a new energy and home appliance company. The average PE valuation of the comparable company in 22 years is 31 times, and the target price is 18.29 yuan, maintaining the buy rating.
Risk tips
The supporting capacity of heat management of new energy vehicles and refrigeration of household appliances was lower than expected, and the business of microchannel and yaweko was lower than expected, which affected the profit growth; The rise of raw materials exceeds expectations and the risk of exchange rate fluctuations.
