\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 799 Changzhou Xingyu Automotive Lighting Systems Co.Ltd(601799) )
Event: the company released 2022q1 performance. In the first quarter, the company achieved a revenue of 2.13 billion, a year-on-year increase of + 11.6% and a month on month increase of - 5.27%; The net profit attributable to the parent company was 270 million, with a year-on-year increase of - 5.61% and a month on month increase of + 27.8%. Profit margin increased month on month: Q1 gross profit margin was 22.38%, year-on-year -3.84pct, month on month + 5.99pct. The year-on-year decrease in gross profit margin is partly due to changes in accounting standards, which we believe will affect about 1.7 points (freight), and partly due to the rise in the price of raw materials and changes in product structure.
Q1 four charges were 8.42%, with a year-on-year increase of -1.31pct, of which the sales rate decreased by 1.66pct (freight transferred to cost), and the R & D rate was + 1.19pct. The net interest rate was 12.64%, with a year-on-year increase of -2.31pct and a month on month increase of + 3.27pct, rising from the bottom. We can see that since Q3 last year, the profit margin of the company has entered the bottom due to the lack of core of major customers, the decline of scale effect and the rise in the price of raw materials. However, the cost transfer will generally lag for one to two quarters. After two quarters of the bottom area, the profit situation has recovered significantly.
Successful expansion of diversified customers: the company has been very successful in developing new customers in the past two years. In 2020, BBA, a strategic customer, achieved breakthroughs in multiple projects. In 2021, weixiaoli, a new force in vehicle manufacturing of strategic customers, also made breakthroughs across the board, winning led and ADB headlamp projects. With the mass production of new customers and new projects, the company is expected to open a secondary high growth curve.
Industry upgrading continues: in addition to the company relying on its own efforts to continuously develop new projects, the upgrading of the lamp industry is far from over. Halogen lamps go from low zone led to high zone led, and then ADB upgrades. DLP lamps with higher price are gradually adopted by high-end vehicles. Intelligent vehicles have higher and higher requirements for digital interaction of lamps, and the continuous upgrading of lamps also brings significant growth opportunities to the company.
Investment strategy: we expect the company's net profit attributable to the parent company to be 1.4/1.7 billion in 22 / 23 years. At present, the stock price corresponds to 25 times of the company's dynamic PE in 2022, maintaining the company's "buy" rating.
Risk tip: the sales volume of customers is lower than expected, and the price of raw materials continues to deteriorate.
