\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 311 Camel Group Co.Ltd(601311) )
Core view
Net profit attributable to parent company increased by 15% in 2021. The company’s annual revenue in 2021 was 12.403 billion yuan, a year-on-year increase of 29%, and the net profit attributable to the parent company was 832 million yuan, a year-on-year increase of 15%. In the fourth quarter of 2021, the company’s single quarter revenue was 3.261 billion yuan, with a year-on-month increase of 14% / 13%, and the net profit attributable to the parent company was 157 million yuan, with a year-on-month increase of – 43% / – 7%. In the first quarter of 2022, the company’s single quarter revenue was 3.113 billion yuan, with a year-on-month increase of – 4% / – 5%, and the net profit attributable to the parent company was 140 million yuan, with a year-on-month increase of – 49% / – 11%. The company’s annual performance growth is mainly due to the expansion of sales volume. The performance decline in the first quarter of 2022 is mainly due to the decline of main engine supporting and export sales, the rise of some raw and auxiliary materials and fuel power prices, and the increase of labor costs.
The gross profit margin and net profit margin are under pressure, and the expense rate remains stable during the period. In 2021, the gross profit margin of the company was 17.0%, a year-on-year decrease of 3.0 percentage points, the net profit margin was 6.7%, a year-on-year decrease of 0.8 percentage points, and the period expense rate was 9.9%, a year-on-year decrease of 1.2 percentage points. In the fourth quarter of 2021, the company’s gross profit margin was 12.5%, a year-on-year decrease of 7.6 percentage points, the net profit margin was 4.8%, a year-on-year decrease of 4.9 percentage points, and the period expense rate was 9.3%, a year-on-year decrease of 1.2 percentage points. Repeated epidemics, chip shortage, “national six year” policy, rising prices of energy and raw materials and soaring export freight costs led to the reduction of the company’s annual gross profit margin and net profit margin. In the first quarter of 2022, the company’s gross profit margin was 16.0%, a year-on-year decrease of 4.6 percentage points, the net profit margin was 4.5%, a year-on-year decrease of 4.0 percentage points, and the period expense rate was 9.6%, a year-on-year decrease of 0.3 percentage points.
The market share of lead-acid batteries is nearly 50%, and the sales of recycled lead and low-voltage lithium batteries are growing rapidly. In terms of business, in 2021, the company achieved an operating revenue of 96.32/26.30/0.19/123 million yuan from lead-acid battery / recycled lead / lithium battery / other businesses, with a year-on-year increase of 14% / + 149% / + 6% / + 40%, and the gross profit margin was 22.13% / – 0.96% / – 21.20% / 0.19% respectively. In 2021, the company sold 31.52 million KVAh of lead-acid batteries, with a year-on-year increase of 12%, accounting for about 49.0% of China’s host supporting market share and about 27.4% of China’s maintenance and replacement market share; 480000 tons of recycled lead were sold, with a year-on-year increase of 55%; 9313kwh of low-voltage lithium batteries were sold, with a year-on-year increase of 22%, and 11 project fixed points of 9 enterprises were completed. Among them, 12V auxiliary battery products have met the technical requirements of Daimler, BMW, Geely, Chrysler and other host plants.
Risk tip: the epidemic has dragged down car sales and the price of raw materials has risen.
Investment advice: maintain the “buy” rating Camel Group Co.Ltd(601311) is a leading enterprise in starter batteries (OEM accounted for 49% of the market and am accounted for 27% of the market in 2021). It lays out the lead-acid battery cycle industry chain (production sales Recycling remanufacturing) and the new energy battery cycle industry chain, focusing on the front loading, rear loading and overseas markets. The company is committed to becoming a global leader in all-round solutions for automotive low-voltage batteries, striving to “recreate a camel” in terms of revenue scale by 2025 and achieve the strategic goal of operating revenue exceeding 20 billion yuan. Due to the rising cost of raw materials and shipping, the profit forecast is slightly lowered. It is expected that the EPS in 22-24 years will be 0.87/1.03/1.25 yuan (the previous forecast was 0.99/1.16 / – yuan). The undervalued value will be subdivided into the leading track and maintain the “buy” rating.
