\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 699 Ningbo Joyson Electronic Corp(600699) )
Event:
Ningbo Joyson Electronic Corp(600699) released the annual report of 2021 and the first quarterly report of 2022: in 2021, the company achieved an operating revenue of 45.670 billion yuan, a year-on-year increase of – 4.64%; The net profit attributable to the shareholders of the listed company was -3.753 billion yuan; – 709.13% year on year; The net profit attributable to shareholders of listed companies after deduction of non profits was -3.787 billion yuan, a year-on-year increase of -120681%. In Q1 2022, the company achieved an operating revenue of 11.73 billion yuan, a year-on-year increase of – 4.53%; The net profit attributable to the shareholders of the listed company was -158 million yuan, a year-on-year increase of – 171.32%; The net profit attributable to the shareholders of the listed company after deducting non profits was -46 million yuan, a year-on-year increase of -119.12%.
Q4 profit side is under pressure, and 2022q1 has improved month on month. In 2021, goodwill was impaired by 2.02 billion yuan. In 2021q4, the company achieved an operating revenue of 11.563 billion yuan, a year-on-year increase of – 17.46%; The net profit attributable to the parent company was -3.771 billion yuan, a year-on-year increase of -519.93%; The gross profit margin was 6.9%, with a year-on-year increase of -1.82pct; The net interest rate was -36.68%, with a year-on-year increase of -41.82pct. In 2022q1, the company’s gross profit margin was 10.87%, year-on-year -4.57pct, month on month + 3.97pct; The net interest rate was -2.61%, year-on-year -4.96pct, month on month + 34.07pct. The decline in the company’s net profit attributable to the parent company in 2021 was mainly due to the impairment of about RMB 2.02 billion of the company’s goodwill for the relevant asset groups of the automotive safety division, as well as the rise in upstream raw materials and transportation costs.
Q1 cost control effect is obvious. The annual sales expense rate of the company was 2.59%, with a year-on-year increase of + 0.71pct; The management fee rate was 6.05%, with a year-on-year increase of -0.35pct; The R & D cost was 5.14%, with a year-on-year increase of + 0.33pct; The financial expense rate was 2.13%, with a year-on-year increase of -0.11pct. The annual expense rate was 15.92%, with a year-on-year increase of + 0.58pct, mainly due to the increase of R & D expense rate. In 2022q1, the sales expense ratio was 1.38%, with a month on month ratio of -3.70pct; The management expense rate was 6.13%, with a month on month ratio of -0.97pct; The R & D expense rate was 4.74%, with a month on month ratio of -0.87pct; The financial expense rate was 1.27%, with a month on month ratio of -2.45pct. The overall expense rate during Q1 was 13.52%, with a month on month ratio of -8.00pct, and the effect of fee control was obvious.
By business:
Automotive electronics: the company’s automotive electronics system achieved an operating revenue of 12.71 billion yuan, a year-on-year increase of + 24%, and a gross profit margin of 18.99%, a year-on-year increase of + 1.6pct. 1) the business income of intelligent cockpit / Internet connection system is 10.61 billion yuan. The holding subsidiary of the company, Junlian Zhixing, cooperated with Huawei in the field of intelligent cockpit in August 2021 to develop a complete intelligent cockpit solution. It is expected to start mass production in the fourth quarter of 2022. In the field of intelligent cockpit interaction system, the company maintains cooperation with Volkswagen, BMW, Audi, Tesla and other international customers, and continues to expand cooperation with Chinese independent brands and new powerful customers. In the field of intelligent Internet connection, the company’s vehicle road collaboration 5g-v2x technology was carried in the mass production of Gaohe hiphiix in May 2021, making it the first mass production in the world. At the same time, the orders of China’s new forces were mass produced in early 2022. 2) The business income of new energy management system is 2.1 billion yuan. The company’s products include BMS, charging boost module, OBC, etc. it is a core supplier of BMW, Mercedes Benz, Volkswagen, Porsche, etc. 3) In terms of intelligent driving business, the company established Junsheng Automotive Technology Research Institute in July 2021 to locate Tier1 in this field and carry out research and development of l0-l4 automatic driving technology.
Automotive safety system: the operating revenue of the company’s automotive safety system business was 32.31 billion yuan, a year-on-year increase of – 2.5%, and the gross profit margin was 8.49%, a year-on-year increase of -2.75pct. The company’s automobile safety division introduced strategic investors in November 2021 to further expand China’s automobile safety business share. The company continues to cultivate DMS system in the field of active safety. Cadillac has been equipped with mass production and will be widely used in other models of GM and other brands in the future.
Profit forecast and investment rating we are optimistic about the layout of the company’s intelligent driving field, the capacity of intelligent Internet connection business is improved, and the automobile active safety business is moving forward steadily. It is estimated that the company will realize operating revenue of 49.44 billion yuan, 56.28 billion yuan and 59.81 billion yuan from 2022 to 2024, with a year-on-year growth rate of 8%, 14% and 6%; The net profit attributable to the parent company was 760 million yuan, 1160 million yuan and 1.45 billion yuan, with a year-on-year growth rate of 120, 53% and 25%; EPS is 0.55, 0.85 and 1.06 yuan, and the corresponding PE is 18, 12 and 10. The valuation is relatively reasonable. However, as the company still needs time to integrate the assets of KSS and Takata, Japan, and there is some uncertainty in the performance, the rating was lowered to “overweight”.
Risk Tips 1) the price of raw materials continues to rise; 2) International shipping prices continued to rise; 3) The sales growth of new energy vehicles was lower than expected; 4) The company’s new customer expansion is less than expected; 5) The sales volume of key customers of the company is lower than expected; 6) The company’s new business capacity is lower than expected; 7) The company’s business integration is less than expected; 8) The impairment of the company’s goodwill exceeded expectations.
