\u3000\u3 Shengda Resources Co.Ltd(000603) 596 Bethel Automotive Safety Systems Co.Ltd(603596) )
Key investment points
Key points of announcement: the company released the performance report for the first quarter of 2022, which is in line with our expectations. In Q1 of 2021, the company achieved a revenue of 1.014 billion yuan, a year-on-year increase of + 29.0% and a month on month increase of – 12.9%; The net profit attributable to the parent company was 138 million yuan, a year-on-year increase of + 8.3% and a month on month increase of + 1.8%; The net profit deducted from non parent company was 112 million yuan, with a year-on-year increase of + 0.4% and a month on month increase of – 2.1%.
The gross profit margin stabilized and rebounded, and the cost rate decreased month on month. The company achieved a gross profit margin of 22.5% in Q1 of 2022, a month on month increase of + 0.38pct. The gross profit margin continued to decline for three quarters and then stabilized and rebounded; The cost rate was 9.59%, with a month on month ratio of -1.58pct, of which the management cost rate and R & D cost rate were 2.08% / 6.83% and -0.22pct / – 1.27pct respectively. The increase of gross profit margin and the decrease of superimposed expense rate jointly promoted the slight increase of the net profit attributable to the parent company month on month.
The output of core customers is under pressure, and the number of projects under research continues to increase. Affected by the epidemic and chip shortage in Q1 in 2022, Chery Automobile, the company’s core customer, achieved an output of 233500 vehicles, with a month on month ratio of – 15.64%, and Geely Automobile achieved an output of 331500 vehicles, with a month on month ratio of – 18.31%. As of Q1 2022, the company has added 47 projects involving 22 models, including 25 EPB projects, 7 wcbs (braking by wire) projects and 8 lightweight projects. The total number of projects under research is 233, including 98 new energy projects and 8 projects put into operation, involving 4 models.
Core managers accept equity incentive, start a new round of repurchase plan and issue assessment management measures. The company issued the incentive plan for restricted shares in 2022 (Draft). Mr. Yan Shifu, the general manager of the company, was granted 416000 shares of restricted shares at a grant price of 27.89 yuan per share. The first time the restriction was lifted was 60 months from the date of grant. At the same time, the company issued a new round of equity repurchase plan, which is expected to be completed within 12 months after the board of directors passed the repurchase plan. It is expected that the number of repurchases will not be less than 500000 shares (inclusive) and not more than 700000 shares (inclusive), and the repurchase price will not exceed RMB 90.91/share for the implementation of equity incentive or employee stock ownership plan. The company issued the management measures for the assessment of the implementation of restricted stock incentive plan in 2022. The performance assessment indicators of each year are as follows: the revenue growth rate in 2022 / 2023 / 2024 / 2025 / 2026 is based on the revenue in 2021, and the growth rates are 15.00% / 32.25% / 52.09% / 74.90% / 101.14% respectively. Based on this, the proportion of lifting the sales restriction shall be determined. If the target of the current year is less than 85%, the sales restriction shall not be lifted in the current period.
Profit forecast and investment rating: we maintain the company’s profit forecast. From 2022 to 2024, the revenue is RMB 4.839/7.010/9.414 billion respectively, with a year-on-year increase of + 38.6% / + 44.9% / + 34.3%, the net profit attributable to the parent company is RMB 666 / 9.30/1.329 billion respectively, with a year-on-year increase of + 31.9% / + 39.7% / + 43.0%, the corresponding EPS is RMB 1.63/2.28/3.25 respectively, and the corresponding PE is 35.3/25.3/17.7 times respectively, maintaining the “buy” rating.
Risk tip: the recovery of passenger car demand is lower than expected, the penetration of new energy vehicles is lower than expected, and the progress of vehicle intelligence is lower than expected.
