\u3000\u3 Bohai Water Industry Co.Ltd(000605) 005 Cwb Automotive Electronics Co.Ltd(605005) )
Performance review
On April 26, the company released the annual report of 21 years and the quarterly report of 22 years. The revenue of 21 years was 1.42 billion yuan, a year-on-year increase of 18%, and the net profit attributable to the parent company was 195 million yuan, a year-on-year increase of 3%. 21q4 revenue and net profit attributable to parent decreased by 3% / 43% year-on-year; 22q1 revenue and net profit attributable to parent company + 9% / - 34% year-on-year.
Business analysis
The rise of raw materials and the slowdown of revenue growth, and the profit margins of 21q4 and 22q1 decreased by 10PCT year-on-year. In the 21st year, the revenue of automotive electronics increased by 13%, and the increment mainly came from: the revenue of new energy projects (power management, electric drive and battery management components) was 59 million yuan, with a year-on-year increase of 297% and a gross profit margin of 14%, which is expected to rise after heavy volume; Intelligent cockpit components reached 144 million yuan, a year-on-year increase of 40%. The net interest rates of 21q4 and 22q1 were 10.0% and 9.6% respectively, with a year-on-year decrease of 7 / 6pct, mainly due to the decline of gross profit margin and the slowdown of income growth caused by the rise of raw materials, but the rapid growth of management expenses and R & D expenses. In addition, inventories increased by 60% year-on-year and operating cash flow decreased by 51% year-on-year in 21 years, mainly due to the purchase of reserved raw materials in advance, the increase of orders and the increase of inventory reserves in response to the rise of material prices.
New energy has obtained high-quality orders from leading customers, and the new capacity should deal with the new orders. In the past 21 years, the company's annual sales volume of new projects was 47 million (210 million in the past 21 years), including 10 million new energy vehicle products, and won Contemporary Amperex Technology Co.Limited(300750) , Volkswagen MEB platform, Sinotruk Jinan Truck Co.Ltd(000951) and other high-quality projects; The average annual sales volume of intelligent driving and intelligent cockpit products is 15 million; At the end of the year, the average annual sales volume of projects under research was 55 million. In response to new orders, the company expects to increase the production capacity of new energy / steering / intelligent cockpit by 8 / 4 / 5 million sets in 22 years, with an increase of 135% / 60% / 6% respectively compared with the sales volume in 21 years.
High quality automobile connector company, the proportion of intelligent electric business has increased rapidly. The company is a high-quality automobile connector company in China. Its fist products are applied to transmission and steering systems with high safety level. It is a leader in mold design and R & D and automatic production line development. In the 21st year, the proportion of the company's new energy vehicles and intelligent driving and intelligent cockpit business in automotive electronics increased to 37%, and the number of new orders accounted for 53%.
Profit adjustment
We expect the net profit attributable to the parent company from 2022 to 2024 to be RMB 260 / 350 / 420 million respectively, with a compound growth rate of 29%, corresponding to EPS of RMB 0.64/0.86/1.03 respectively and PE of 21 / 16 / 13 times respectively, maintaining the "buy" rating.
Risk tips
Risk that the sales volume of new energy vehicles and the acquisition of connector orders are lower than expected; The risk that the progress of the project under research is lower than expected; The long-term dimension is the risk of shrinking the connector business of traditional fuel vehicles.
