\u3000\u3 China Vanke Co.Ltd(000002) 050 Zhejiang Sanhua Intelligent Controls Co.Ltd(002050) )
Event: Zhejiang Sanhua Intelligent Controls Co.Ltd(002050) released the first quarterly report of 2022. The company's Q1 revenue was 4.8 billion yuan, yoy + 40.9%; Achieved a performance of 450 million yuan, yoy + 25.8%. According to the announcement, the monthly income in March is 1.74 billion yuan, yoy + 42.6%; The performance was 160 million yuan, yoy + 19.0%. Under the influence of the epidemic, the company's business performance is excellent. We judge that with the order delivery of new energy vehicles, Sanhua's revenue is expected to maintain rapid growth in the future.
Rapid growth of the company's revenue: the revenue of Sanhua Q1 increased rapidly in a single quarter. From the perspective of spin off: 1) the large volume of new energy vehicle business has effectively driven the growth of the company's revenue side. In 2022q1, the zero business income of Sanhua automobile was about 1.6 billion yuan, with a year-on-year increase of about 60%, accounting for about 1 / 3 of the total income. 2) Household appliance business revenue grew rapidly, and Q1 revenue grew by 30%. Looking forward to the next few quarters, we analyze that with customer expansion and order delivery, Sanhua's revenue end is expected to maintain a rapid growth trend.
The net interest rate of Q1 decreased: the net interest rate of Sanhua Q1 in a single quarter was 9.5%, year-on-year -1.2pct. According to our analysis, the main reasons for the decline of the company's profitability are: 1) the sharp rise in the price of raw materials. The difference between Q1 gross profit margin and sales expense rate was -1.8pct year-on-year. In terms of business, the gross profit margin (comparable caliber) of Q1 Sanhua home appliance business decreased by about 3PCT year-on-year, which was mainly due to the decline in the gross profit margin of microchannel business; Q1 gross profit margin of auto parts business increased slightly. 2) The fluctuation of RMB exchange rate and sea freight also has a certain impact on profitability. According to the industrial research, we know that the company has adjusted the downstream price by optimizing the product structure to stabilize its profitability.
Decline in Q1 operating cash flow: the net operating cash flow of Sanhua Q1 was 130 million yuan, yoy-33.7%, which was mainly due to: 1) with the growth of income, Q1 accounts receivable increased by 63.4% year-on-year and 18.2% month on month, which had an impact on collection. 2) The company's labor cost increased, and the cash paid to and for employees in Q1 was yoy + 34.7% (a year-on-year increase of 200 million yuan).
Investment suggestion: we expect the business of Sanhua household appliances to grow steadily. With the large volume of new energy vehicles, the auto zero business will develop rapidly. We expect that the company's EPS from 2022 to 2023 will be 0.58/0.78 yuan, and the six-month target price will be 17.40 yuan, corresponding to 30 times PE in 2022, maintaining the investment rating of buy-a.
Risk tip: the RMB appreciated sharply and the price of raw materials rose
