\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 933 Ikd Co.Ltd(600933) )
Key investment points
Event: the company released the first quarterly report of 2022 and achieved an operating revenue of 900 million yuan, with a year-on-year increase of + 12.7% and a month on month increase of + 5.8%. The continuous release of reserve orders resulted in strong revenue performance; The net profit attributable to the parent company was 85 million yuan, with a year-on-year increase of – 21.1%, which was mainly affected by the rise in the prices of raw materials and freight, with a month on month increase of + 173.9%, mainly due to the decrease of 34.86 million yuan in financial expenses; The gross profit margin was 23.4%, with a year-on-year increase of -6.1pp and a month on month increase of + 0.1pp; The net interest rate was 9.9%, with a year-on-year increase of -3.7pp and a month on month increase of + 5.8pp.
New energy business accelerated. The company is a high-quality aluminum alloy precision die casting company in China, expanding its product territory around the strategy of small and medium parts + new energy, three electricity and structural parts. It has strong competitiveness in small and medium-sized products such as wiper system, steering system, engine system, transmission system and braking system, and continues to explore the new energy vehicle market. The proportion of new energy vehicle products represented by core parts of three electric system and structural parts such as thermal management system continues to increase. Among the new projects obtained in 2021, new energy vehicle projects, thermal management system projects and intelligent driving vision system projects accounted for about 70%, with a year-on-year increase of + 42pp; Customers include Bosch, Continental, United electronics, Magna, Mahler, Mitsubishi Electric, etc. In terms of intelligence, it realizes the product coverage of automatic driving / ADAS image system. In addition, the company accelerated the expansion of large-scale aluminum die casting business and launched an impact on the three electric shells and automobile structural parts of new energy vehicles.
Production capacity continues to improve. At present, Liuzhou production base has basically completed the delivery and is currently preparing for production; Ningbo Intelligent Manufacturing Technology Industrial Park and Mexico factory are under construction as planned and are expected to be completed and put into use in 22h2; In addition, the company signed the investment agreement in Maanshan, Anhui Province in early 22 to build the intelligent manufacturing project of three electricity system parts and automobile structural parts of new energy vehicles by stages. At present, the project is under intense and orderly design and planning. The release of capacity under construction will promote the company’s performance growth.
Profit forecast and investment suggestions. It is estimated that the EPS from 2022 to 2024 will be 0.5 yuan, 0.65 yuan and 0.83 yuan respectively, and the compound growth rate of net profit attributable to the parent company in the next three years will be 32.3%. We give the company 25 times PE in 2022, corresponding to the target price of 12.5 yuan, and give a “buy” rating for the first time.
Risk warning: the progress of new energy business is lower than the expected risk; Risk of passenger car sales falling short of expectations; Risk of price rise of raw materials; Risk of epidemic spread; Exchange rate fluctuation risk; Trade friction risk, etc.
