\u3000\u3 Guocheng Mining Co.Ltd(000688) 208 Autel Intelligent Technology Corp.Ltd(688208) )
Event overview: on April 28, the company released the 2022q1 quarterly report: during the period, the operating revenue was 513 million yuan, a year-on-year increase of 13.16%; The net profit attributable to the parent company was 63 million yuan, a year-on-year decrease of 42.48%; The net profit after non deduction was 47 million yuan, a year-on-year decrease of 47.37%; Net operating cash flow was – 180 million yuan.
Q1 performance is greatly affected by the epidemic + supply chain, and strategic goods preparation reduces cash flow year-on-year. During the reporting period, the company achieved an operating revenue of 513 million yuan, with a year-on-year increase of 13.16%. The growth rate decreased significantly compared with the same period last year. The main reason is that the core market, such as North America, was affected by the epidemic + supply chain. During the period, the operating revenue was only 225 million yuan, with a year-on-year increase of only 4.87%. Among them, cloud services still maintained a high growth, and the supply of ADAS, TPMS and other products was relatively limited; Other regions, such as the European market, achieved a revenue of 86 million yuan, an increase of 23.21% year-on-year, of which ADAS achieved rapid growth, TPMS and cloud services showed rapid growth; China and other regions achieved revenue of 201 million yuan, a year-on-year increase of 24.31%, of which TPMS and ADAS achieved rapid growth, and cloud services showed rapid growth. In terms of net profit margin, the net profit margin of Q1 company in 2022 was 12.33%, a year-on-year decrease of 11.93pct. We judged that it was mainly due to two reasons: 1) cost side: due to the rise of exchange rate, freight and raw materials, the gross profit margin decreased by only 58.94%, a decrease of 3.3pct; 2) Cost side: the company increased its investment in intelligence and new energy, resulting in the current R & D cost of 114 million yuan, a year-on-year increase of 13.51%. In addition, in order to meet the expansion of the scale of new energy business, the personnel expansion and publicity and promotion expenses increased year-on-year, resulting in the current sales and management expenses of 70 million yuan and 71 million yuan respectively, with a year-on-year increase of 57.40% and 38.72%. In terms of operating cash flow, the net operating cash flow of the company in the current period was – 180 million yuan, which was mainly due to the significant increase in the original purchase payment of the company in order to meet the needs of business scale expansion and deal with the tension of global supply chain.
We are optimistic about the growth of traditional business under the recovery of the epidemic, and the new energy business in 22 years is also expected to contribute in large quantities. According to the 21 year annual report released in the early stage, all businesses of the company showed high growth, among which TPMS and ADAS increased relatively significantly. TPMS: the company has released the first generation tread detector tbe200 and tbe100, which are at the leading level. For the European region, the company has launched two multi protocol pre programming, which realizes the ready to use of loading and covers about 70% of the best-selling models; Adas: the newly developed ADAS calibration and four-wheel alignment two in one equipment ia900 has broken the separation of four-wheel alignment and ADAS calibration in the automotive rear market, greatly improved the efficiency and accuracy of four-wheel alignment and calibration, and won high praise. In addition, the company has officially released a full range of new energy charging piles and new energy diagnosis series at the end of September 2021. Its products cover a number of DC overcharges, such as 7KW AC, 10kW AC, 12KW AC, 20kW DC, 120kw DC fast charge and so on. We believe that with the easing of the epidemic, the company’s strategic stock is sufficient, the traditional business is expected to maintain a high growth, and the development of new energy business may lay a stronger foundation for the company’s performance growth.
Investment suggestion: as a leading enterprise in the automotive aftermarket, the company is expected to benefit from intelligence and new energy and usher in the second round of growth curve. We expect the company to realize a net profit attributable to the parent company of RMB 539 / 749 / 997 million in 22-24 years. The current market value corresponds to 23 / 17 times of PE in 22 / 23 years, maintaining the “recommended” rating.
Risk tip: exchange rate risk; Risk of freight rise; The expansion of new energy business was less than expected.
