\u3000\u3 China Vanke Co.Ltd(000002) 284 Zhejiang Asia-Pacific Mechanical & Electronic Co.Ltd(002284) )
Net profit attributable to parent company of Q1 company in 2022 + 58.7% year on year
On April 27, the company released the first quarterly report of 2022. The total revenue of Q1 company in 2022 was 960 million yuan in a single quarter, up + 8.8% year on year and – 12.4% month on month; In Q1, the net profit attributable to the parent company in a single quarter was 24 million yuan, a year-on-year increase of + 58.7% and a month on month increase of + 100%; Q1 non recurring profit and loss in a single quarter was 5.17 million yuan, including government subsidy of about 5.02 million yuan; In Q1, the non net profit deducted by the parent company in a single quarter was 19 million yuan, a year-on-year increase of + 98.6%. In 2022, the gross profit margin of Q1 company was 14.2%, with a year-on-year ratio of -0.5pcts and a month on month ratio of + 2.6pcts; Q1 company’s net interest rate was 2.5%, year-on-year + 0.7pcts, month on month + 1.3pcts. At present, the company’s basic braking business is in the performance repair period, and the electronic braking business is expected to usher in rapid growth. We maintain the company’s profit forecast for 20222024 unchanged. It is estimated that the net profit attributable to the parent company in 20222024 will be RMB 117 / 205 / 321 million respectively, and the EPS will be RMB 0.16/0.28/0.44/share. The current share price corresponds to 36.7/21.0/13.4 times of PE in 20222024, maintaining the “overweight” rating.
The performance restoration was realized steadily, and the Q1 deducted non net profit in 2022 returned to the same period in 2018
From 2018 to 2019, due to the decline in the sales volume of downstream independent brand customers, the revenue of the company’s core product disc brake decreased, superimposed with the rapid release of the company’s basic braking capacity, resulting in pressure on the profit. With the recovery of sales volume of some downstream customers and the continuous mass production of the company’s basic braking projects with customers such as Great Wall Motor Company Limited(601633) , Geely Automobile and GAC Honda, the company’s basic braking business has gradually improved. In addition, continuous technological transformation helps the company reduce costs and increase efficiency. From Q1 2018 to 2022, Q1 company’s single quarter revenue was RMB 1.09/8.8/5.2/8.8/960 billion respectively. From Q1 2018 to 2022, Q1 company’s single quarter deducted non net profit was RMB 18 / – 0.11 / – 0.39/0.09/0.19 billion respectively. The single quarter deducted non net profit of Q1 company in 2022 has reached the level of the same period in 2018, and the company’s performance recovery is being realized steadily.
The electronic control braking business has obtained several project fixed points and is expected to usher in rapid growth
In 2021, the company’s electric braking business won several project fixed points, such as great wall ESC / ABS / EPB, Dongfeng passenger car ESC / EPB, zero running EPB, etc. At the same time, the development of new products of the company’s line control is progressing steadily. According to the company’s annual report, the company’s non decoupling electronic power assisted braking system ebb and one-box line control braking (iehb) plan to match no less than 6 models in 2022 and start mass production after the winter standard in 2023.
Risk tip: the demand for automobiles at home and abroad is less than expected, the price of raw materials fluctuates sharply, the development of new projects is less than expected, and the sales volume of downstream customers is less than expected.
