\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 799 Changzhou Xingyu Automotive Lighting Systems Co.Ltd(601799) )
Core view
In 2022q1, the revenue increased by 12% and the net profit attributable to the parent company increased by 28% month on month Changzhou Xingyu Automotive Lighting Systems Co.Ltd(601799) 2022q1 achieved a revenue of RMB 2.132 billion, a year-on-year increase of 11.60%, a month on month decrease of 5.27%, a year-on-year decrease of 5.61% and a month on month increase of 27.79%, deducting a non parent net profit of RMB 246 million, a year-on-year decrease of 4.57% and a month on month increase of 35.88%. On the whole, the company’s operation is stable. From January to February, the company’s revenue increased by about 25% year-on-year, and the net profit attributable to the parent increased by about 5% year-on-year. In March, it was affected by the shutdown of Changchun FAW Group,
Q1 revenue growth slowed down compared with January February. With the resumption of work and production of FAW system, the company’s performance is expected to be stable and good.
In 2022q1, the profitability was improved month on month, and the cost control was strict. After the change of accounting policy, the gross profit margin of 2022q1 is not comparable (part of the sales expenses are included in the cost). We disassemble it with “gross profit margin – sales expense rate”. This caliber is 2022q1, of which 21q4 is -2.18pct year-on-year and + 3.58pct month on month. The net interest rate was 12.64%, with a year-on-year increase of -2.31pct and a month on month increase of + 3.27pct. In terms of expense rate, the management / R & D / financial expense rate in 2022q1 was 2.47/5.13 / – 0.02% respectively, with a year-on-year change of -0.36 / + 1.19 / – 0.48pct respectively and a month on month change of -0.10 / – 0.40 / + 0.09pct respectively. We believe that the company’s profitability improved month on month in 2022q1 and the net interest rate remained above 12%, which may be due to the month on month improvement of the company’s customer structure and the cost reduction and efficiency increase of the company’s lean production.
The stock customer Volkswagen’s lack of core led to a decline in production scheduling, and the incremental models were concentrated in the Japanese series. In 2022q1, China’s passenger car production increased by 10.9% year-on-year, automobile production increased by 2.0% year-on-year, and Xingyu’s 2022q1 revenue increased by 11.6%, leading the passenger car industry by 0.8pct and the automobile industry by 9.6pct. 2022q1’s core customer Volkswagen’s output fell year-on-year due to the lack of core. FAW Volkswagen’s output fell year-on-year by – 9.4%, month on month by + 11%, FAW Toyota by – 2.8%, month on month by – 18%, FAW Hongqi by + 3.5%, month on month by – 46%, Guangfeng and guangben by + 24%, month on month by – 5%, Chery by + 36%, month on month by – 13.8%, Nissan and dongben by + 0.2% and month on month by – 12%.
The product end continues to upgrade, and the client extends from joint venture to new forces and autonomy, with promising prospects. From January 1 to March 15, 2022, the company undertook new project orders of about 4 billion yuan. At present, it has entered the new force (weixiaoli) and independent brand supplier system and obtained the project. The company will continue to promote the acquisition of ADB, DLP headlamp, atmosphere lamp and other lamp projects, and increase the proportion of high value-added products. The second and third phases of the intelligent industrial park have been officially put into use, and the construction of Serbian factories has been smooth. The projects from European main engine plants will enter the batch production stage from 2022.
Risk tip: the risk of raw material price fluctuation and the risk of downstream production scheduling caused by chip shortage.
Investment suggestion: it has long-term potential as a global leader in lamps, maintains the verification of ADB and projection headlamp industry trend at the industry end of purchase rating, actively embraces forward-looking new technologies and front-end new customers at the company end, cooperates with the industrial chain to expand the capacity circle, and overseas construction is progressing steadily. We maintain the profit forecast and expect the profit of 22 / 23 / 24 to be 14.1 / 18.2 / 23.1, corresponding to PE 22 / 17 / 14x respectively. It has long-term potential as a global leader and maintains the buy rating.
