\u3000\u3 China Vanke Co.Ltd(000002) 475 Luxshare Precision Industry Co.Ltd(002475) )
Event: the company released the annual report for 21 years. In the 21 years, the operating revenue was 153946 billion yuan, yoy + 66.43%, the net profit attributable to the parent was 7.071 billion yuan, yoy-2.14%, and the net profit not attributable to the parent was 6.016 billion yuan, yoy-1.20%. The company also released the first quarterly report of 22 years. In 22q1, the company achieved revenue of 41.600 billion yuan, yoy + 97.91%, qoq-42.96%, net profit attributable to parent company of 1.803 billion yuan, yoy + 33.63%, qoq-24.26%, net profit attributable to non parent company of 1.524 billion yuan, YoY + 30.56%, qoq-24.62%.
Comments: binbiao Likai precision (Yancheng) has achieved high growth in operating revenue in 21 years, and its profit is dragged down by the rise of raw material logistics price + the impact of new business investment + the weak demand for intelligent acoustic wear. In the whole year of 21, the company achieved revenue of 153946 billion yuan, yoy + 66.43%, net profit attributable to the parent company of 7.071 billion yuan, yoy-2.14%, deducting net profit attributable to the parent company of 6.016 billion yuan, yoy-1.20%. In the whole year of 21, the gross profit margin was 12.28%, yoy-5.81pct, and the net profit margin was 5.08%, yoy-3.02pct. Corresponding to the single quarter of 21q4, 21q4 achieved revenue of 72.934 billion yuan, yoy + 121.19%, net profit attributable to parent company of 2.381 billion yuan, yoy-6.48%, net profit deducted from non attributable to parent company of 2.021 billion yuan, yoy + 7.64%, corresponding to gross profit margin of 8.01%, yoy-6.98pct, qoq-7.99pct, net profit margin of 3.68%, yoy-4.4pct, qoq-1.71pct. In 21 years, consolidated Likai precision (Yancheng) made a great contribution to the growth of revenue. In 21 years, it achieved a revenue of 49.7 billion yuan and a net profit of 1.09 billion yuan, with a corresponding net interest rate of 2.2%, mainly due to the large initial investment of newly acquired Likai precision products and the high proportion of materials in the product cost structure. At the same time, under the background of global core shortage, factors such as the rise of raw material prices and logistics and transportation costs + phased pressure on the demand for intelligent acoustic wearable products also pose a certain drag on the company’s gross profit margin. By industry, in 21 years, the revenue of computer interconnection products and precision components, automobile interconnection products and precision components, communication interconnection products and precision components, consumer electronics, other connectors and other businesses was 78.57/41.43/32.69/134638/4.039 billion yuan, yoy + 123.11% / + 45.66% / + 44.32% / + 64.56% / + 96.82%, accounting for 5.1% / 2.69% / 2.12% / 87.46% / 2.62%, and the gross profit margin was 19.86% / 16.11% / 17.41% / 11.36% / 19.84%, yoy-1.59pct/-0.41pct/-2.32pct/-6.49pct/-2.49pct。 The ratio of sales / management / R & D / financial expenses in 2021 is 0.51% / 2.43% / 4.31% / 0.36% respectively, yoy-0.00pct / – 0.23pct / – 1.90pct / – 0.62pct.
The first quarter report exceeded expectations, the gross profit margin improved month on month, and the growth rate of net profit was 25% ~ 30% higher than the pre forecast value. The company achieved revenue of 41.6 billion yuan in 22q1, yoy + 97.91%, qoq-42.96%. In the first quarter, the epidemic outside China reduced the speed of customs clearance, some material suppliers stopped production and transportation capacity, affected logistics delivery and revenue recognition, and had a certain impact on revenue growth, but it still maintained a high growth rate year-on-year. On the profit side, in the first quarter, the net profit attributable to the parent company was 1.803 billion yuan, yoy + 33.63%, qoq-24.26%, and the net profit not attributable to the parent company was 1.524 billion yuan, yoy + 30.56%, qoq-24.62%. In the first quarter, the gross profit margin was 11.8%, yoy-5.0pct, QoQ + 3.8pct, and the net profit margin was 5.0%, yoy-1.5pct, QoQ + 1.3pct. The gross profit margin decreased year-on-year due to the impact of upstream material shortage cost increase + transportation cost increase + product structure change, but improved month on month. 22q1 sales / management / R & D / financial expense rates were 0.51% / 2.01% / 4.06% / 0.35%, yoy-0.32pct / – 0.46pct / – 2.42pct / + 0.10pct respectively. The overall expense rate decreased and efficiency improved.
Firmly optimistic about the company as a consumer electronics leader, the vertical integration strategy of “parts module complete machine” supply chain is continuously strengthened + the layout of automobile business is far-reaching, and fully benefits from automobile electrification and intellectualization + active production expansion:
The product layout of the company’s automobile business includes harness, connection system, new energy (PDU, BDU, inverter, etc.), intelligent network connection (road test unit, on-board communication unit), intelligent cockpit (domain controller, information entertainment system, multimedia instrument) and intelligent manufacturing. Harness and connector products will fully benefit from the market expansion brought by intellectualization and electrification + the rise of Shanxi Guoxin Energy Corporation Limited(600617) automobile enterprises in China is expected to give priority to supporting China’s supply chain + the company’s forward-looking layout of high-voltage, high-speed and new energy products, which has been introduced into customers of new energy brands in North America, new forces of Chinese car making and other new energy automobile enterprises + companies actively expand the production of new energy vehicles and smart vehicle connection products; The group’s business collaboration + active foreign cooperation, and the long-term growth of the automobile business is sufficient. The company will actively cooperate with Sinovel (Sinovel) and Sinovel (Sinovel) in the development of the dual layout of Sinovel (Sinovel + Chery) auto driving module industry, and actively cooperate with Sinovel (Sinovel + Chery) in the development of automotive intelligent driving module industry. The 10 billion joint venture Chery + controlling shareholder acquired 20% shares of Chery, developed the vehicle ODM mode, and established a new automobile platform;
The expansion of key customer categories + the increase of share support the growth of the company’s traditional consumer electronics business, and continue to be optimistic about the company’s “parts module complete machine” supply chain vertical integration strategy. 1. Spare parts: acquire Nikai computer, improve the layout of structural parts, and fully infiltrate the layout of mechanical, optical, acoustic and electrical integration; 2. SIP: the overall performance of the product end is mature. It has achieved full coverage in the layout of intelligent and healthy wearable products. In the short term, it will expand intelligent acoustic wearable products and peripheral functional modules. In the long term, it will develop in the direction of chip / semiconductor module packaging. The improvement of SIP self-sufficiency rate will help to improve the company’s assembly gross profit margin; 3. Optics: Lijing innovated to acquire Gaowei electronics and cut into the front camera module (in vitro), so as to further enhance the optical strength of Guangbao; 4. Assembly: acquire Wistron, start iPhone assembly (in vitro), undertake the share of Taiwan manufacturers, and increase the share of Apple watch assembly.
Investment suggestion: maintain the revenue of 2127 / 276.5 billion yuan, yoy + 38% / + 30%, net profit of 10.5/14.9 billion yuan and yoy + 49% / + 41% profit forecast in 22 and 23 years.
Risk tips: the impact of the epidemic is less than expected, the development of automobile electrification / intelligence is less than expected, domestic supporting facilities are less than expected, the release of Apple ar new products is less than expected, the increase of company share is less than expected, Sino US trade friction, consumer electronics sales and ASP are less than expected
