\u3000\u3 China Vanke Co.Ltd(000002) 540 Jiangsu Asia-Pacific Light Alloy Technology Co.Ltd(002540) )
Core view
The company’s performance increased by 28% year-on-year in 2021 and decreased by 7.5% year-on-year in 2022q1. In 2021, the company achieved a revenue of 6.017 billion yuan (+ 50.8%), a net profit attributable to the parent company of 458 million yuan (+ 28.2%), deducting a net profit not attributable to the parent company of 349 million yuan (+ 32.1%), and a net cash flow from operating activities of – 313 million yuan. The company plans to distribute a cash dividend of 1.00 yuan to all shareholders for every 10 shares. In 2022q1, the company achieved revenue of 1.546 billion yuan (+ 17.1%), net profit attributable to parent company of 83 million yuan (- 7.5%), net profit attributable to non parent company of 84 million yuan (- 6.1%) and net cash flow from operating activities of – 202 million yuan.
Affected by the rising price of raw materials, the gross profit margin of the company decreased slightly. The company’s gross profit margin was 14.5% in 2021 and 13.5% in 2022q1. As the price of the company’s products was priced by “aluminum price + processing fee”, the rise of aluminum price led to the decline of the company’s gross profit margin. There is a certain deviation between the company’s operating net cash flow and net profit, mainly due to the rise of aluminum price, the expansion of the company’s production and sales scale and the increase of working capital.
Production and sales increased by 32%. In 2021, the company’s product sales volume was 225900 tons, with a year-on-year increase of 32.2%. In terms of industry segments, the automotive industry is still the company’s main sales field, accounting for 95.4%, of which the sales volume of aluminum materials of three electricity system of new energy vehicles increased by 143% year-on-year, far exceeding the overall sales growth of the company’s products. In addition to the automotive industry, the growth rate of sales of aerospace and household commercial air conditioners is more than 90%. Although the absolute value of sales is small, there is broad growth space in the future, and the company is also actively layout and technical reserves. The company disclosed its business plan for 2022: the production and sales volume increased by 10% – 30% year-on-year, the operating revenue increased by 10% – 30% year-on-year, and the total profit and the net profit attributable to the owner of the parent company increased by 50% – 80% year-on-year.
Risk tip: risk of large fluctuation of aluminum price; The epidemic affects downstream demand.
Investment advice: maintain the “buy” rating.
Referring to the average price of various commodities since the beginning of this year, assuming that the average annual price of aluminum ingots in 2022 / 2023 / 2024 is 22000 yuan / ton, the operating revenue of the company from 2022 to 2024 is expected to be 84.06/96.23/11.023 billion yuan, the net profit attributable to the parent company is 562640/722 million yuan respectively, with a year-on-year growth rate of 22.8/13.7/12.9%, the diluted EPS is 0.44/0.50/0.57 yuan respectively, and the corresponding PE of the current stock price is 8.9/7.8/7.0x Jiangsu Asia-Pacific Light Alloy Technology Co.Ltd(002540) as a leading supplier of automotive aluminum extrusions, the company has high growth certainty by virtue of its advantages in technology and customers. With the help of the large volume of chassis body parts and the deep processing business of aluminum extrusions for new energy vehicles, the company has broader growth space and maintains the “buy” rating.
