\u3000\u3 China Vanke Co.Ltd(000002) 472 Zhejiang Shuanghuan Driveline Co.Ltd(002472) )
Event:
1) the company released its performance and achieved a revenue of 5.391 billion yuan in 21 years, a year-on-year increase of + 47.13%; The net profit attributable to the parent was 326 million yuan, a year-on-year increase of + 536.98%, and the deduction of non attributable to the parent was 288 million yuan, a year-on-year increase of + 659645%. The corresponding 21q4 revenue was 1.325 billion yuan, and the net profit attributable to the parent was 99.79 million yuan, a year-on-year increase of + 173.31%;
2) in Q1 of 22 years, the revenue was 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%, and the net profit deducted from non attributable to the parent company was 107 million yuan, a year-on-year increase of 145.13%. 22q1’s revenue and performance reached a record high, and the company’s operating quality and profitability continued to improve.
All business segments maintained high growth, and the proportion of new energy revenue continued to increase. In 21 years, the company’s passenger car revenue was 2.44 billion yuan, a year-on-year increase of + 57.08%; Commercial vehicle revenue was 790 million yuan, a year-on-year increase of + 15.43%; The revenue of construction machinery was 790 million yuan, a year-on-year increase of + 53.83%; The revenue of electric tools / Motorcycles / decelerators and other businesses was 170 / 150 / 180 million yuan respectively, with a year-on-year increase of + 32.07% / + 89.96% / + 10.39%. All business segments maintained high growth. Among them, the gear income of new energy vehicles was 585 million, with a year-on-year increase of + 212.66%, accounting for 24% of the income of passenger vehicles and + 12pct, with a significant increase in the proportion. In Q1 of 22 years, the revenue was 1.655 billion yuan, with a year-on-year increase of + 40.92% and a month on month increase of + 24.88%. We expect the main business to be 1.385 billion yuan, with a year-on-year increase of + 36.14% and a month on month increase of + 13.12%. Under the background of high raw material prices in the industry and lack of core in the downstream, the business segments of the company not only maintained high growth, but also broke through a record high in a single quarter. We believe that it mainly benefited from its scarcity as a global leader in high-precision gear manufacturing.
The profitability has been continuously improved and the operation quality has been significantly improved. The gross profit margin of the company in 21 years was 19.53%, with a year-on-year increase of + 2.16pct; The net interest rate was 6.57%, with a year-on-year increase of + 4.38pct; By product, the gross profit margin of passenger cars / commercial vehicles / construction machinery / was 18.84% / 18.81% / 24.37% respectively, with a year-on-year increase of + 2.79 / + 0.09 / + 5.32pct. The gross profit margin of Q1 of the company in 22 years was 19.35%, with a year-on-year increase of + 0.79pct; The net interest rate was 7.54%, with a year-on-year increase of + 2.34pct. We believe that the improvement of the company’s profitability mainly benefited from the continuous optimization of product structure and the continuous rise of capacity utilization. At the same time, in terms of operation capacity, 22q1 inventory turnover days were 99.40 days, a year-on-year increase of -9.28 days; The turnover days of accounts receivable were 76.68 days, a year-on-year increase of -4.47 days; The turnover days of accounts payable were 69.14 days, a year-on-year increase of -6.35 days.
Full orders on hand and accelerated capacity expansion. By the end of the 21st century, the company’s new energy gear orders in hand and 22-year intentional contracts totaled 1.64 billion yuan. At the same time, the company has signed a sales order of about 3.554 billion yuan in the whole life cycle with the PPET project, which is expected to be put into operation in Q4 in 22 years, reach the peak in 24 years and continue to 2028. At present, the company has built 1.7 million sets of pure electric gear production capacity, and is expected to expand 1.8 million sets to 3.5 million sets of pure electric production capacity in 22 years. The accelerated expansion of production capacity is expected to further build its own competitive barriers while meeting the strong demand of downstream.
Investment suggestion: Based on the high outlook of the new energy vehicle industry and the continuous consolidation and deepening of the company’s competitive barriers, we raised the company’s revenue of 6.98/8.65 billion yuan (the previous value was 6.75/7.93 billion yuan) and net profit of 570 / 840 million yuan (the previous value was 5.4/700 billion yuan), corresponding to the valuation of 24.3/16.5x, maintaining the “buy” rating.
Risk warning: macroeconomic fluctuation risk; Price fluctuation risk of raw materials; Exchange rate fluctuation risk; Risk of epidemic impact; Risk of order execution falling short of expectations.
