\u3000\u3 China Vanke Co.Ltd(000002) 475 Luxshare Precision Industry Co.Ltd(002475) )
Event: on April 27, the company released its annual report for 2021, realizing an operating revenue of 153946 billion yuan, a year-on-year increase of 66.43%; The net profit attributable to the parent company was 7.071 billion yuan, a year-on-year decrease of 2.14%; The net profit deducted from non parent company was 6.016 billion yuan, a year-on-year decrease of 1.20%. The company issued a profit distribution plan and distributed a cash dividend of 0.11 yuan / share to all shareholders. At the same time, the company released the first quarterly report of 2022, realizing an operating revenue of 41.6 billion yuan, a year-on-year increase of 97.91%; The net profit attributable to the parent company was 1.803 billion yuan, a year-on-year increase of 33.63%; The net profit deducted from non parent company was 1.524 billion yuan, with a year-on-year increase of 30.56%.
Likai consolidated its statement to increase its revenue, and Q1 performance bucked the trend: 1) in 2021, the company achieved a revenue of 153946 billion yuan, yoy + 66.43%; By business, the revenue of consumer electronics / computer / Automobile / communication business was 134638/78.57/41.43/3.270 billion yuan respectively, yoy + 64.56% / 123.11% / 45.66% / 44.32%; The subsidiary Likai precision consolidated meter has a large demand for its mobile phone precision display structure module products and achieved rapid growth. In 21 years, the company had a revenue of 49.727 billion yuan and a net profit of 961 million yuan. The gross profit margin of the company is 12.18%, yoy-5.81pct, which is mainly due to the large investment in the early stage of new Likai products, the lack of cores and materials in the upstream, the rise of raw materials and transportation costs, the mass production and landing of some products under the epidemic and the delay of delivery time. The net profit attributable to the parent company was 7.071 billion yuan, yoy-2.14%, and the net interest rate was 4.59%, yoy-3.22pct. 2) 22q1 the business of consumer electronics, computer interconnection products and precision components increased significantly, and the company achieved an operating revenue of 41.6 billion yuan, a year-on-year increase of 97.91%; After the short-term pressure on the performance of 21 years, the profitability of 22q1 was greatly improved, and the net profit attributable to the parent company was 1.803 billion yuan, yoy + 33.63%; The net profit deducted from non parent company was 1.524 billion yuan, yoy + 30.56%. The company has a clear layout in the fields of automobile, consumption and communication. We believe that with the gradual resolution of many adverse factors, the company’s revenue and performance will continue to grow synchronously and rapidly.
Take advantage of the wave of electric intelligence and strengthen the layout of vehicles through vertical integration: according to the data of China Automobile Industry Association, the sales volume of electric vehicles in China reached 3.52 million in 2021, which is expected to continue to grow by 47% in 22 years; The penetration rate of electric vehicles continued to increase, from 7.2% at the beginning of the year to 19% at the end of the year, with great growth potential, bringing many opportunities to manufacturers in relevant industrial chains. The company’s product layout in the automotive sector includes wire harness, connection system, new energy, intelligent Internet connection, intelligent cockpit and intelligent manufacturing. 1) Harness: through vertical integration, the company has become a comprehensive supplier integrating the design, verification and manufacturing of complete low-voltage and high-voltage vehicle harness, special harness and charging gun, and has expanded some new powerful customers; 2) Automobile connector: at present, the company has designed and developed all connectors in the whole vehicle; 3) New energy: the company has launched BDU, PDU, inverter and other core components of new energy vehicles; 4) Internet of vehicles: the company is committed to wireless communication and vehicle electronic products. At present, the product line covers RSU, TCU and CGW; 5) Intelligent cockpit driving: the company’s related products include ar-hud, information and entertainment system, cockpit entertainment domain, etc. in the future, more functions of consumer electronics will be applied to cockpit driving, and the technology accumulation of the company in the field of consumer electronics for many years will also play a role; (6) Provide customers with high-quality services for injection molding products with the help of PCBA scale and intelligent manufacturing. In February 2022, the company cooperated with Chery to enter into vehicle manufacturing and empower Tier1 business. The company is expected to grow into a leading enterprise of automotive electronic platform and further thicken its medium and long-term performance.
Consumption grew steadily and production capacity continued to expand: consumer electronics accounted for 87.46% of revenue, which is an important basic business of the company. The company’s consumer electronics continues the product layout of previous years, and takes advantage of outlets such as yuancosmos, aiot and high-speed transmission. There are rich product lines, including smart wearable watch bracelet, AR / VR / MR, smart touch pen, smart life 5gcpe, etc. The company has been recognized by core customers in the development and automatic process of intelligent health wearable products, and has realized the full coverage of product end layout; In terms of system packaging, it will develop towards chip / semiconductor module packaging for a long time; In the field of mobile phone system products, the company vigorously promotes the practice of intelligent digitization and efficiently meets the diversified needs of customers. In February, the company plans to raise 7.9 billion yuan through non-public fundraising for projects such as the production of smart wearable devices and smart mobile terminal precision parts and components. The production capacity continues to expand, and consumer electronics is still the focus of the company in the future.
Investment suggestion: we estimate that the company’s operating revenue from 2022 to 2024 will be 185054 billion yuan, 223149 billion yuan and 269.7 billion yuan respectively, the net profit attributable to the parent company will be 10.006 billion yuan, 14.041 billion yuan and 16.45 billion yuan respectively, the EPS will be 1.42 yuan, 1.99 yuan and 2.33 yuan respectively, and the corresponding PE will be 21.8 times, 15.6 times and 13.3 times respectively, maintaining the “Buy-A” investment rating.
Risk warning: downstream demand is less than expected; New business expansion is less than expected; The progress of raised investment projects is less than expected; Continuous risk of epidemic impact; Market competition intensifies.
