\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 741 Huayu Automotive Systems Company Limited(600741) )
Matters:
The company issued the annual report of 2021 and the performance report of the first quarter of 2022. In 2021, the company realized an operating income of 139.94 billion (+ 4.8%), a net profit attributable to the parent company of 6.47 billion (+ 19.7%), a net profit deducted from non attributable to the parent company of 5 billion (+ 18.7%), and a cash dividend of 8.5 yuan (including tax) for every 10 shares. In the first quarter of 2022, the company achieved a revenue of 37.37 billion (+ 7.2%), a net profit attributable to the parent company of 1.71 billion (+ 32.1%), and a net profit not attributable to the parent company of 1.26 billion yuan (+ 6.3%).
Ping An View:
The revenue performance is stable, the new business expands rapidly, and the profitability of the core business is strong. The revenue of the company’s interior and exterior decoration business reached 90.42 billion, with a year-on-year increase of 2%. The total gross profit margin of the company’s various businesses was 13%, a decrease of 0.68 percentage points. The company’s new energy components (including drive motor, electric drive system and battery tray) achieved rapid growth in 2021. The drive motor was newly designated by Volvo and the electric drive system was newly designated by Great Wall Motor Company Limited(601633) company. The company’s net profit attributable to the parent company in 2021 was 6.47 billion yuan, of which the net profit of interior and exterior trim, metal forming, mold and functional parts business was 4.21 billion / 330 million / 2.01 billion respectively, with a year-on-year increase of 57.6% / 32.1% / 11.6% respectively. The significant increase in the net profit of interior and exterior trim is expected to mainly benefit from the thickening of performance brought by the acquisition of seat business. The loss of hot working parts business was 150 million yuan, which was mainly affected by the sharp rise in the prices of bulk commodities such as electrolytic aluminum and steel.
The “neutrality” strategy was promoted, and the customer structure was continuously optimized. According to the summary statistics in 2021, 49.2% of Huayu’s main business revenue came from vehicle customers other than Saic Motor Corporation Limited(600104) in 2020 (the proportion of Saic Motor Corporation Limited(600104) external revenue in 2020 was 46.1%). In 2021, the company’s interior decoration, seats, airbags, front and rear subframes, brake calipers, cast aluminum cylinder blocks, cylinder heads and other businesses realized the supporting supply of Mercedes Benz, BMW, Audi and other luxury brands, and the total sales in 2021 exceeded 30 billion yuan; Interior decoration, seats, airbags, steering wheel, audio, lighting, bumper, tailgate, steering gear, drive shaft and other businesses have realized the supporting supply of Tesla, Byd Company Limited(002594) , Weilai, Xiaopeng and ideal and other new energy vehicles, with a total sales of more than 12 billion yuan in 2021; Automobile transmission shaft, drive shaft, differential lock, lighting, compressor, window lifter, interior decoration, steering gear, electronic oil pump and other businesses have achieved supporting supply to great wall, Chang’an, Geely, GAC, Chery and other automobile enterprises, with a total sales of more than 9 billion yuan in 2021.
Actively promote the international development of core business. In 2021, the company acquired 49.99% of the equity of the original Yanfeng andotto to realize the independent control of the seat business, and actively promote the overseas development of the seat business. In addition to maintaining a high share in the global automotive interior market, the car seat and passive safety business has obtained supporting points in global customers such as Volkswagen, GM, Audi, BMW, Mercedes Benz and Tesla with the help of global customer relations and operation capabilities. Lightweight cast aluminum, fuel tank system and automotive electronic products have also entered the markets of Europe, the United States, South Korea, Australia and Southeast Asia.
The operation was stable in the first quarter of 2022, but it was greatly affected by the epidemic in the short term. The production and operation mode of the company in Shanghai remained stable in late 2023, especially due to the sudden fluctuation of the company’s production and operation mode in the first quarter of 2023. Affected by the epidemic prevention and control, we expect that the whole automobile industry will be under pressure in the second quarter (the passenger Federation predicts that the sales volume of narrow passenger cars will decline by 32% in April). The company’s main customers Saic Motor Corporation Limited(600104) are greatly affected by the epidemic factors, and the company’s performance in the second quarter is expected to be affected to a certain extent.
Profit forecast and investment suggestion: as the leader of comprehensive auto parts in China, the company has a strong voice in the industrial chain. In recent years, the company has gradually realized the autonomy and controllability of its core business, which has increased the company’s performance. In addition, the company’s product matrix in the field of intelligence and electrification has been continuously expanded, the “neutral” strategy has been steadily promoted, and the customer structure has been continuously optimized. Considering the impact of China’s epidemic prevention and control and other short-term factors, we lowered the company’s net profit forecast for 2022 / 2023 to 7.41 billion / 8.41 billion (the original net profit forecast was 7.95 billion / 8.97 billion), and the net profit forecast of the new company in 2024 to 9.33 billion yuan, still maintaining the company’s “recommended” rating.
Risk tips: 1) the impact of the epidemic in Shanghai is higher than expected, which will directly have a great impact on the company’s main customers and their own production; 2) The problem of chip shortage cannot be solved in time: if the problem of chip supply cannot be solved, it will affect the output of the host factory and have a negative impact on the company’s performance; 3) The sales volume of automobile industry is lower than expected: if the epidemic situation outside China cannot be controlled, it will directly affect the economy outside China, and then affect the production and sales volume of automobile and the company’s product orders; 4) Saic Motor Corporation Limited(600104) sales volume is lower than expected: 50% of the company’s revenue comes from Saic Motor Corporation Limited(600104) , which is greatly affected by Saic Motor Corporation Limited(600104) production and sales. If Saic Motor Corporation Limited(600104) sales volume is lower than expected, the company’s performance will be affected.
