\u3000\u3 Guocheng Mining Co.Ltd(000688) 208 Autel Intelligent Technology Corp.Ltd(688208) )
Matters:
The company announced in the annual report of 2021 that in 2021, the operating revenue was 2.254 billion yuan, a year-on-year increase of 42.84%, and the net profit attributable to the parent company was 439 million yuan, a year-on-year increase of 1.31%. The profit distribution plan for 2021 is: it is proposed to allocate 1 yuan (including tax) for every 10 shares, and the capital reserve will not be converted into share capital.
Ping An View:
The company’s revenue increased rapidly in 2021, and the net profit attributable to the parent company was under pressure in the current period. In 2021, the company’s operating revenue was 2.254 billion yuan, a year-on-year increase of 42.84%, and its revenue achieved rapid growth. Among them, the business income of automobile comprehensive diagnostic products was 1.197 billion yuan, a year-on-year increase of 28.64%; TPMS product business revenue was 417 million yuan, a year-on-year increase of 51.30%; The business income of software upgrade services was 301 million yuan, a year-on-year increase of 44.42%; The business income of ADAS products was RMB 229 million, with a year-on-year increase of 105.46%. The net profit attributable to the parent company was 439 million yuan, with a year-on-year increase of 1.31%, and the net profit attributable to the parent company increased steadily. The growth rate of RMB appreciation and spot profit is mainly affected by the uncontrollable growth rate of RMB and net profit of the parent company. Excluding the above uncontrollable factors, the net profit attributable to the parent company increased by 54.19% year-on-year.
The gross profit margin of the company decreased year-on-year, the expense rate increased year-on-year, and the R & D investment increased significantly. The gross profit margin of the company in 2021 was 57.65%. After retroactive adjustment of 2020 according to the implementation question and answer of the Ministry of Finance on the accounting standards for business enterprises in November 2021, the gross profit margin in 2020 was 62.83%, and the gross profit margin in 2021 decreased by 5.18 percentage points year-on-year, mainly due to the appreciation of RMB, the rise of international freight and spot prices and other uncontrollable factors. If the above uncontrollable factors are excluded, the gross profit margin of the company in 2021 is 63.75%, which remains stable compared with the same period of last year. The company’s expense rate during 2021 was 45.50%, with a year-on-year increase of 6.70 percentage points, mainly because the R & D expense rate increased by 4.20 percentage points year-on-year. In 2021, the company continued to increase R & D investment in new energy and intelligence, with R & D investment of 523 million yuan, a significant increase of 84.10% year-on-year; The revenue of R & D investment accounted for 23.19%, an increase of 5.20 percentage points year-on-year. The continuous strengthening of the company’s R & D investment provides a strong guarantee for the company to maintain the leading core technology.
The company’s core products continue to iterate and its market competitiveness continues to increase. The company’s core products include automotive comprehensive diagnosis products, TPMS products, software cloud service products, ADAS products and new energy products. In 2021, the company’s core product iteration continued to make positive progress. In terms of Automotive comprehensive diagnostic products, the company has released a new generation of mid-range diagnostic tablets ms906pro, ms906pro ts and elite II all over the world, and the hardware performance has been greatly improved. In terms of TPMS products, the company released the first generation of tread pattern detectors: tbe200 and tbe100, which adopt laser measurement technology, and the measurement accuracy can reach 0.1mm. In terms of ADAS products, the company’s ADAS calibration software has achieved the coverage of some new models in 2021 and 2022 models worldwide, and achieved the global vehicle series coverage rate of more than 95%. It is the latest and most complete ADAS calibration system in the industry; The research and development of ia900, a two in one device for ADAS calibration and four-wheel positioning, has greatly improved the efficiency and accuracy of four-wheel positioning and calibration. In terms of software cloud service products, the company continued to update the latest model coverage of Toyota, VW, Benz, Audi, Nissan, Hyundai & Kia, GM, PSA, Honda, Ford, BMW, BYD, great wall, Land Rover, SAIC Volkswagen and other brands, and completed Tesla coverage support in terms of new energy. In terms of new energy products, the company has launched maxicharger series AC pile products that have passed the European standard test certification. Once the company’s charging pile products are launched overseas, they have achieved good results. Since the AC pile products began to be sold at the end of 2021, they have successively received orders from Britain, Singapore, France, the Netherlands, Germany, Spain, Portugal and other countries and gradually delivered them. The company’s new energy products will become a new engine for the company’s revenue growth.
Profit forecast and investment suggestions: according to the company’s 2021 annual report, we adjusted the performance forecast and estimated that the net profit attributable to the parent company from 2022 to 2024 would be 533 million yuan (the previous value was 742 million yuan), 719 million yuan (the previous value was 1069 million yuan), 955 million yuan (New), and EPS would be 118 million yuan, 159 yuan and 212 yuan respectively. The PE corresponding to the closing price on April 26 was about 23.6, 17.5 and 13.2 times respectively. The company is a leader in the global automotive intelligent diagnosis industry, and belongs to the first echelon of the global automotive intelligent diagnosis industry together with Bosch and snib. The company grasps the development trend of the automotive industry and actively expands its product lines. Many product lines such as automotive intelligent diagnosis tools, TPMS products, ADAS products, software cloud services and new energy products are facing development opportunities. At the same time, the company actively expands the market and has initially established a global marketing network. We are optimistic about the future development of the company and maintain the “recommended” rating of the company.
Risk tips: (1) product iteration is not as expected. Strong product iteration ability is an important part of the company’s product core competitiveness and the key for the company to maintain its product competitive advantage. If the company’s product iteration in the future is less than expected, there will be a risk that the market competitiveness of the company’s products will be reduced, and the company’s future development will be affected. (2) Market expansion was less than expected. At present, the company’s sales network has covered more than 70 countries or regions in the world such as North America, Europe, China, Asia Pacific, South America and imea (India, the Middle East and Africa), and has initially formed an integrated global marketing network. However, if the market development of the company’s newly developed areas is less than expected, it will affect the expansion of the company’s global marketing system. (3) The business development of new energy products was less than expected. Following the development trend of new energy in the automotive industry, the company launched a digital integrated solution of “diagnosis, inspection, charging and storage” for the new energy market. If the future market acceptance of the company’s new energy products is lower than expected, there will be a risk that the development of the company’s new energy products business will not meet expectations.
