\u3000\u3 China Vanke Co.Ltd(000002) 402 Shenzhen H&T Intelligent Control Co.Ltd(002402) )
Event: on April 28, 2022, the company released the first quarterly report of 2022. The company achieved a revenue of 1.24 billion yuan, a year-on-year decrease of 2.70%; The net profit attributable to the parent company was 71 million yuan, a year-on-year decrease of 33.79%; The net cash flow from operating activities was RMB 199651 million, with a year-on-year increase of 132.56%.
Due to the impact of the epidemic and the shortage of raw materials, both income and gross profit margin are under pressure. In 2022q1, the company achieved a revenue of 1.24 billion yuan, a year-on-year decrease of 2.70%. Due to the impact of the epidemic in many places, the company is facing pressure from the price rise of upstream raw materials, difficulties in logistics and transportation, epidemic prevention and control and other aspects, and the revenue growth has slowed down. The gross profit margin of 2022q1 was 16.98%, down 2.88pct year-on-year.
The subsidiary Chengchang technology will be listed soon, and T / R chip will make up the business puzzle. Chengchang technology is deeply engaged in the field of microwave and millimeter wave analog phased array T / R chip. With highly focused market positioning and clear technical path, it has developed into one of the few enterprises in China that can provide complete solutions for phased array T / R chip. In 2021, the subsidiary Chengchang technology RF chip business realized a revenue of 211 million yuan, a year-on-year increase of 30.25%, and a net profit of 160 million yuan. On April 7, 2022, the CSRC approved the listing (initial public offering) of Chengchang technology.
Join hands with global tier 1 and embrace China’s new power car factory. The company has established project cooperation with other global tier 1, such as Hella, Stanley, Marelli and Valeo, to actively develop business in the field of lamp controller and body controller. In terms of China’s industrial layout, the company has made substantial progress in cooperation with vehicle manufacturers such as China’s new forces Weilai, Xiaopeng and ideal. Some projects such as seat control, hod (steering wheel off hand detection), front and rear lamp control and charging pile have entered the stage of trial production or mass production. In 2021, the revenue of automotive electronic intelligent controller was 164 million yuan, with a year-on-year increase of 66.22%. At present, the company’s orders for automotive electronic controllers are about 8 billion yuan. It is expected that the automotive electronic business will usher in a large-scale period this year.
Investment suggestion: as a leader in the global intelligent controller industry, the company’s main high-end brand strategy is clear. The intelligent wave of household appliances has brought a multiplier effect of “rising volume and price” to the company’s intelligent controller business. After joining hands with the world’s top tier 1 manufacturers, the automotive electronics business has also obtained a strong “booster”. We expect that the company’s EPS from 2022 to 2024 will be 0.75 yuan, 1.01 yuan and 1.29 yuan respectively, and the current market value corresponding to PE from 22 to 24 years will be 18 / 13 / 11 times respectively. The company’s growth is still underestimated and maintains the “recommended” rating.
Risk warning: risk warning: upstream raw material price fluctuation risk; Risk of recurrent outbreaks; The demand for household appliances is less than expected; The development of automotive electronics business is less than expected
