\u3000\u3 Shengda Resources Co.Ltd(000603) 305 Ningbo Xusheng Auto Technology Co.Ltd(603305) )
Event: the company achieved revenue of 990 million in the first quarter, a year-on-year increase of + 96.3%; The net profit attributable to the parent company was 120 million, a year-on-year increase of + 33.7%. Performance exceeded expectations.
1. The net interest rate rebounded from the bottom and increased month on month:
22q1 achieved a revenue of 990 million, a year-on-year increase of 96.3%, mainly benefiting from 1) the rapid growth of Tesla‘s sales volume and 2) the successful development of other major customers. Q1 gross profit margin was 20.28%, year-on-year -8.94pct, month on month + 1.98pct. The year-on-year decline was mainly due to the great impact of raw material prices. The aluminum price increased from 1.5W yuan per ton in 2021q1 to 2.1W yuan per ton in 2022q1, and the material cost was more than + 40%; The month on month improvement is mainly due to the partial transfer of the company in the first quarter.
Four fees accounted for 7.77%, with a year-on-year rate of -0.63pct, of which the financial rate was 1.95%, + 1.88pct, mainly due to the increase of convertible bond interest. It should be emphasized that the four rates of the company have been effectively controlled at 7.5-9%, which belongs to the echelon with the lowest four rates in the industry. Therefore, under the effective control of the four fees, the net interest rate performance is better than the industry average.
Q1 net interest rate was 12.09%, with a year-on-year ratio of -5.67pct and a month on month ratio of + 4.04pct. When the raw materials were still high, the company’s profit margin stabilized and rebounded and improved month on month.
2. Full orders and active layout: lightweight industry is a heavy investment industry, which will also face many uncertainties during expansion. We can see that the company has achieved high-speed capacity expansion from 170 million fixed assets in 2015 to 1.79 billion in 2021. This period is not only due to active layout and dare to invest, but also due to full orders and abundant grain and grass. At the same time, we also promoted that with the large-scale investment of leading enterprises in the industry, their manufacturing, R & D and management capabilities have been qualitatively improved, which is conducive to continuously developing large customers and forming a closed-loop effect.
Investment suggestion: in the past seven years, the compound growth rate of the company’s revenue was 48% and the compound growth rate of its profit was 42%, belonging to the leading lightweight enterprise with the fastest growth rate. We predict that the net profit in 22 and 23 years will reach Tian Jin Bohai Chemical Co.Ltd(600800) million, corresponding to only 19.7 times of the dynamic valuation in 2022, maintaining the “buy” rating.
Risk warning: the sales volume of customers is lower than expected, the price of raw materials continues to deteriorate, and the epidemic situation is affected
