\u3000\u3 China Vanke Co.Ltd(000002) 472 Zhejiang Shuanghuan Driveline Co.Ltd(002472) )
Event:
Zhejiang Shuanghuan Driveline Co.Ltd(002472) released the annual report of 2021 and the first quarterly report of 2022: in 2021, the company achieved an operating revenue of 5.391 billion yuan, a year-on-year increase of + 47.13%; The net profit attributable to the parent company was 326 million yuan, a year-on-year increase of + 536.98%. In 2022q1, the company achieved an operating revenue of 1.655 billion yuan, a year-on-year increase of + 40.92%; The net profit attributable to the parent company was 119 million yuan, a year-on-year increase of + 124.05%, making a good start in 2022.
Key investment points:
Q4 net profit was + 170% year-on-year, and the gross profit margin increased year-on-year for six consecutive quarters. The operating income of the company was RMB 2021.9 billion, with a year-on-year revenue of + 2021.4%; The net profit attributable to the parent company was 100 million yuan, a year-on-year increase of + 170.27%; Gross profit margin 25.63%, year-on-year + 4.02pct; The net interest rate was 8.04%, with a year-on-year increase of + 4.35pct; The expense rate during the period was 14.72%, with a year-on-year increase of -0.05pct. The expense rate decreased slightly compared with the same period, and the gross profit margin and net profit margin increased significantly year-on-year. In 2022q1, the gross profit margin of the company’s sales was 19.35%, with a year-on-year increase of + 0.79pct; The net profit margin of sales was 7.54%, with a year-on-year increase of + 2.35pct. Since 2020q4-2022q1, the company has achieved year-on-year increase in gross profit margin for six consecutive quarters.
The company’s main business areas and customers expand smoothly. 1) Passenger cars: the company’s products cover EV and PHEV, and has formed strategic cooperation with Tesla, Byd Company Limited(002594) , Guangzhou Automobile Group Co.Ltd(601238) , Weiran power, electric power and other companies and realized batch shipment. During the reporting period, Shuanghuan Jiaxing, a wholly-owned subsidiary of the company, won the cooperation of Bangqi logo Citroen. The project will be put into operation in 2022q4 and reach the peak capacity in 2024. The sales amount will be about 3.354 billion yuan within the life cycle of the agreement (20222028). 2) Heavy truck: the company actively arranged the gear business of AMT automatic transmission, and deeply cooperated with the benchmark customer ZF to improve the product capacity. 3) Industrial Siasun Robot&Automation Co.Ltd(300024) : through advance layout, the company’s subsidiary ring technology has gradually realized the full coverage of 6-1000kg industrial Siasun Robot&Automation Co.Ltd(300024) precision reducer, and has been recognized by core customers and increased in batch production.
The company will raise additional funds to invest in transmission gears of new energy vehicles, automatic transmission gears of commercial vehicles and high-speed and low-noise transmission components. In October 2021, the company plans to raise no more than 2 billion yuan and no more than 1.17 billion shares through non-public offering. The raised funds will be used for the construction of new energy vehicle transmission gears, commercial vehicle automatic transmission gears, high-speed and low-noise parts laboratory and other projects. We believe that this raised investment will help the company realize the upgrading of process technology, transform basic research and new technology development into market advantages, and realize customer expansion and ASP improvement.
Profit forecast and investment rating we are optimistic about the company’s layout and customer expansion in the transmission gear business of new energy vehicles. The company’s products will be rapidly and in large quantities with the continuous improvement of the penetration rate of new energy vehicles. The fixed raising and investment projects will help the company maintain product competitiveness and customer expansion. Based on the principle of prudence, the impact of private placement on the company’s performance is not considered for the time being. It is expected that the company will realize main business income of 6.78 billion yuan, 7.69 billion yuan and 9.03 billion yuan from 2022 to 2024, with a year-on-year growth rate of 26%, 13% and 17%; The net profit attributable to the parent company was RMB 550 million, 750 million and 940 million, with a year-on-year growth rate of 68%, 37% and 25%; The corresponding EPS is 0.71, 0.97 and 1.21 yuan; The corresponding PE is 24, 17 and 14, with reasonable valuation and “buy” rating.
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 company’s new business capacity is lower than expected; 6) Uncertainty of the company’s private placement.
