\u3000\u3 China Vanke Co.Ltd(000002) 906 Foryou Corporation(002906) )
Event: the company released its annual report for 2021. The annual revenue was 4.49 billion yuan, a year-on-year increase of 33%, and the net profit attributable to the parent company was 300 million yuan, a year-on-year increase of 64.9%. Meanwhile, the company released the report for the first quarter of 2022, achieving a revenue of 1.2 billion yuan (year-on-year + 25.2%) and a net profit attributable to the parent company of 70 million yuan (year-on-year + 25.6%).
Automotive electronics and precision die casting business grew rapidly, and order delivery met customer needs. The company’s performance growth in 2021 mainly comes from the substantial growth of automotive electronics and precision die casting. In 2021, the automotive electronics business increased by 39.9% year-on-year, accounting for 65.6% (+ 3.2pp), and the precision die casting business increased by 47.6% year-on-year, accounting for 20.9% (+ 2.1pp). The gross profit margin was 21.6% in the whole year. The decline in the gross profit margin in Q4 was mainly due to the transfer of freight into cost accounting, which had a one-time impact on the gross profit margin, and the net profit margin reached 5.8%. In terms of expense rate, the financial expense rate was 0.2%, the sales expense rate was 4.1%, and the management expense rate was 3.6%. The equity incentive fee increased by about 10.807 million yuan year-on-year. The company continued to invest in R & D around the intelligent and low-carbon (lightweight) of vehicles. The annual R & D cost was 350 million yuan (+ 21.6%), and the R & D cost rate reached 7.7%.
The market penetration of HUD continues to improve, and new intelligent driving products are advancing steadily. Company w-hud2 0 technology is better than w-hud1 0 has been greatly upgraded, FOV, vid and other key technical parameters have been significantly improved, and the imaging area has been greatly increased. At present, it has been equipped with Dongfeng Nissan Qichen, Chang’an, great wall and other models; Ar-hud has achieved large-scale mass production in GAC. At present, the company has comprehensive advantages in technical reserves, number of customers and orders, service response speed, supply chain, intelligent manufacturing and so on. It is expected that HUD market penetration will increase rapidly. In terms of intelligent driving, the company has made in-depth layout of on-board camera, 360 look around system, DMS, APA and other products, launched three cockpit domain control platforms, and continued to promote customer project development; AAOP2. 0 landing in multiple projects to realize the upgrade of cockpit area control open platform; The new product digital power amplifier system has obtained several new project fixed points.
Deeply cultivate existing high-quality customers and actively explore new energy and overseas new markets. In terms of automotive electronics, the company has successfully developed new orders, undertaken new projects including Changan Ford, stellantis group, Beijing Hyundai, Changan Mazda, Dongfeng Honda, great wall, Chang’an, GAC, Geely, Byd Company Limited(002594) , Byd Company Limited(002594) Toyota, Yueda Kia and other customers, and continuously expanded the market share of the company’s products. In terms of precision die casting, the company has successfully imported new projects from customers such as Byd Company Limited(002594) , mainland China, bogwarner, ZF, Haila, Tyco, liandian, WeiPai, Dajiang and Suteng juchuang, among which the orders of HUD, lidar and millimeter wave radar continue to increase.
Profit forecast and investment suggestions. It is estimated that the company’s EPS from 2022 to 2024 will be 0.87 yuan, 1.17 yuan and 1.63 yuan respectively, and the corresponding PE will be 31 times, 23 times and 17 times respectively, maintaining the “buy” rating.
Risk warning: covid-19 epidemic is at risk of recurrence, and the sales volume of downstream automobile industry is lower than expected, resulting in the risk of weak demand for existing products; The development of new products is blocked, and the promotion is less than the expected risk.
