\u3000\u3 Shengda Resources Co.Ltd(000603) 358 Huada Automotive Technology Corp.Ltd(603358) )
Event:
The company released its annual report for 2021: in 2021, the company realized an operating revenue of 4.717 billion yuan, a year-on-year increase of 14.10%; The net profit attributable to the parent company was 358 million yuan, a year-on-year increase of 56.38%; The net profit deducted from non parent company was 296 million yuan, with a year-on-year increase of 38.10%.
The company released the first quarter report of 2022: in 2022q1, the company realized an operating revenue of 1.123 billion yuan, a year-on-year increase of 25.76%; The net profit attributable to the parent company was 79 million yuan, a year-on-year decrease of 14.96%; Net profit deducted from non parent company was 73 million yuan, a year-on-year decrease of 15.99%.
Key points of the report:
The scale of revenue increased steadily and the profitability was gradually improved
In 2021, the company actively carried out market development. The increment brought by high-quality new energy vehicle enterprises such as Xiaopeng and Tesla made the company’s traditional stamping business achieve steady growth. In 2021, the company’s body parts business / mold sales business achieved revenue of RMB 3.661210 billion respectively, with a year-on-year increase of 2.19% / 37.86%. At the same time, the company attaches great importance to cost reduction and efficiency increase. In 2021, the gross profit margin / net profit margin of the company were 17.24% / 7.75% respectively, with a year-on-year increase of 0.49pct/1.87pct, and the profitability increased steadily. In terms of period expenses, the company’s sales expense rate / management expense rate in 2021 was 0.85% / 2.75% respectively, with a year-on-year decrease of 0.04pct/0.05pct. In 2021, the company’s R & D expenses reached 169 million yuan, with a year-on-year increase of 6.84%, mainly invested in the R & D of new products and technologies, and the company’s product structure was continuously optimized. In 2022, affected by the fluctuation and rise of raw material costs and other factors, the company’s gross profit margin / net profit margin were 14.15% / 6.90% respectively, a year-on-year decrease of 5.55pct/3.84pct, and the profit space was under pressure in the short term.
Optimize the industrial layout and continue to add weight to the new energy business
Jiangsu Hengyi, the holding subsidiary of the company, has successively established close cooperative relations with SAIC times, Contemporary Amperex Technology Co.Limited(300750) , Xiaopeng, Byd Company Limited(002594) Toyota, Weilai, ideal and other well-known automobile enterprises. In 2021, the company’s new energy auto parts business realized a revenue of 650 million yuan, with a year-on-year increase of 169.45%. Meanwhile, in 2021, the company invested 51 million yuan in Jiangsu Hengyi to improve its manufacturing capacity of battery box trays for new energy vehicles. It is expected to achieve 1.2 million sets of production capacity by the end of 2022 and 2 million sets by the end of 2023. At present, the company has full orders in hand. With the gradual improvement of production capacity, the new energy business will continue to help the company’s performance growth and improve the company’s profitability.
Investment advice and profit forecast
In the future, the company will continue to benefit from the scale growth of the auto parts industry, and its new energy battery box business is expected to become the second growth curve of the company. From 2022 to 2024, we expect the company’s operating revenue to be 61.14/83.32/10.110 billion yuan respectively, the net profit attributable to the parent company to be 480679/782 million yuan respectively, the corresponding EPS of the current stock price to be 1.09/1.55/1.78 respectively, and the corresponding PE to be 13.1/9.2/8.0 times respectively, maintaining the “overweight” rating.
Risk tips
The risk of rising raw material prices, the risk that the production capacity is less than expected, the risk of declining industry prosperity, and the risk that the development of new customers is less than expected
