\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 741 Huayu Automotive Systems Company Limited(600741) )
Event:
Huayu Automotive Systems Company Limited(600741) released the annual report of 2021 and the first quarterly report of 2022: in 2021, the company achieved an operating revenue of 139944 billion yuan, a year-on-year increase of + 4.77%; The net profit attributable to the parent company was 6.469 billion yuan, a year-on-year increase of + 19.72%. In 2022q1, the company achieved an operating revenue of 37.370 billion yuan, a year-on-year increase of + 7.15%; The net profit attributable to the parent company was 1.707 billion yuan, a year-on-year increase of + 32.13%.
Key investment points:
Q4 performance is under pressure, and the annual net interest rate is + 0.49pct year-on-year. In 2021q4, the company achieved an operating revenue of 39.610 billion yuan, a year-on-year increase of – 5.36%; The net profit attributable to the parent company was 1.767 billion yuan, a year-on-year increase of – 23.21%; The gross profit margin was 12.61%, with a year-on-year increase of -5.13pct; The net interest rate was 5.06%, with a year-on-year increase of -2.03pct. Throughout the year, the gross profit margin of the company was 14.38%, with a year-on-year increase of -0.85pct; The net interest rate was 5.71%, year-on-year + 0.49pct; The expense rate during the period was 10.70%, with a year-on-year increase of -0.98pct. Among them, the sales expense ratio was 0.71%, with a year-on-year increase of -0.59pct, mainly due to the conversion of previous transportation expenses into operating costs; The management expense ratio was 10.04%, with a year-on-year increase of -0.31pct, mainly due to the reduction of office operating expenses.
In 2022, the net profit attributable to the parent company in Q1 was + 32% year-on-year. In Q1 2022, the company achieved an operating revenue of 37.37 billion yuan, a year-on-year increase of + 7.15%; The net profit attributable to the parent company was 1.707 billion yuan, a year-on-year increase of 32.13%; The gross profit margin was 13.85%, with a year-on-year increase of -1.05pct; The net interest rate was 5.14%, year-on-year + 0.44pct; During the period, the expense rate was 10.11%, with a year-on-year rate of -0.82pct, and the effect of fee control was good.
The company’s customer structure continues to be optimized. The company supplies BBA and other luxury car brands, realizing a total foreign exchange sales of more than 30 billion yuan in China; Supply Tesla, Byd Company Limited(002594) , Weilai, Xiaopeng, ideal and other new energy vehicle brands, with total sales exceeding 12 billion yuan; Supply great wall, Chang’an, Geely, GAC, Chery and other independent brands, with a total sales of more than 9 billion yuan. In 2021, 49.2% of the company’s main business revenue came from complete vehicle customers other than Saic Motor Corporation Limited(600104) with a year-on-year increase of + 3.31pct, and the effect of customer structure optimization was remarkable.
Product innovation and transformation, and several projects have been targeted by customers. In line with the development trend of intelligent and electric vehicles, the company continues to launch innovative products, including: Huayu electronics launched its independently developed 4D imaging millimeter wave radar products, forming a product line covering the complete demand of ADAS for millimeter wave radar; The intelligent cockpit series products of Yanfeng automotive trim system have been designated by European and American vehicle customers for high-end models; Huayu vision technology intelligent lamp realizes the supply of Zhiji, Gaohe and other models, and pioneers the supply of slim module products, Cadillac lyriq, and the through tail lamp is delivered to Audi e-tron; The drive motor series platform products independently developed by Huayu electric system have been designated by Volvo worldwide, and the prototype research and development of 800V high-voltage drive motor has been completed; Huayu Magna’s high-power electric drive system products have been designated by the Great Wall, and the domestic substitution of power semiconductor modules and chips has been realized on this system. We believe that based on the advantages of R & D, gradually broaden the product matrix and the stickiness of existing customers, the average matching value of a single car is expected to continue to increase.
The customer structure of profit forecast and investment rating companies has been continuously optimized, supporting more traditional independent brands and new forces, and upgrading business products such as intelligent driving and intelligent cockpit. It is estimated that the company’s main business income from 2022 to 2024 will be 161.2 billion yuan, 178.8 billion yuan and 193.8 billion yuan, with a year-on-year growth rate of 15%, 11% and 8%; The net profit attributable to the parent company was 7.8, 8.4 and 9 billion yuan, with a year-on-year growth rate of 20%, 9% and 7%; EPS is 1.04, 1.42 and 1.88 yuan; The corresponding PE is 7.6, 7.0 and 6.6, the valuation is reasonable, and the company is given a “buy” rating.
Risk Tips 1) the price of raw materials continues to rise; 2) International shipping prices continued to rise; 3) The company’s new customer expansion is less than expected; 4) The sales volume of key customers of the company is lower than expected; 5) The company’s product transformation is less than expected.
