\u3000\u3 Guocheng Mining Co.Ltd(000688) 162 Jee Technology Co.Ltd(688162) )
Event: Recently, the company released its 2021 annual report and the first quarterly report of 2022. In 2021, the company achieved an operating revenue of 2.122 billion yuan, a year-on-year increase of 42.06%; The net profit attributable to the owners of the parent company was 131 million yuan, a year-on-year increase of 1.85%; 2022q1 achieved a revenue of 549 million yuan, a year-on-year increase of 6.875 billion yuan, and a net profit attributable to the parent company of 36.23 million yuan, a year-on-year increase of 3.11%. Comments are as follows:
Deep cultivation of new energy vehicle installation and survey lines, and sufficient equipment business orders. The company's business consists of two sectors, intelligent equipment business and electric drive business. In 2021, the company's intelligent equipment business realized a revenue of 1.638 billion yuan, a year-on-year increase of 24.7%. The company's intelligent equipment belongs to non-standard customized products. The company's products are assembled, integrated and debugged in the factory and delivered to the customer's site after passing the initial acceptance. After passing the final acceptance, the sales revenue is confirmed, and the delivery cycle is long. Most of the revenue recognized in 2021 comes from orders in 2020, which is greatly affected by the epidemic in 2020, which will affect the growth rate of the company's business in 2021. According to the 2021 annual report, the company added 2.989 billion yuan of orders in the field of intelligent equipment, a year-on-year increase of more than 70%. In 2021, the equipment business has sufficient orders to ensure the continuous growth of this business in the future. For many years, the company has focused on the intelligent assembly and testing of automobile powertrain, the intelligent assembly and testing of power battery and the intelligent connection of automobile body. In particular, the company has accumulated rich experience and technical reserves in the light-weight body and the assembly and testing production line of power battery. In 2021, the company expanded the high-end customer market in the field of new energy vehicles such as Tesla, Volkswagen, velai, Xiaopeng, ideal vehicle, Byd Company Limited(002594) and so on, reflecting the competitiveness of the company in this field.
The new generation of electric drive products were actively distributed, and the electric drive business grew rapidly: in 2021, the company's electric drive business achieved a revenue of 413 million yuan, a year-on-year increase of 146.4%, and 82600 sets of motor and electronic control parts products (including 118300 sets of Daoyi power), a year-on-year increase of 206.17%. The growth rate of electric drive business exceeded expectations. According to the annual report, the company has actively laid out a new generation of electric drive products, including SiC controller development technology, flat wire motor development technology and deep integration technology of integrated electric drive system. During the reporting period, the company realized the fixed-point of new customers and new projects such as Weilai automobile, Dongfeng Automobile Co.Ltd(600006) , Geely Automobile, Honda of Japan and MSA of Korea, which further demonstrated the core competitiveness of the company in the field of electric drive.
The increase in sales volume is expected to drive the improvement of profitability. In 2021, the company's comprehensive gross profit margin was 23.5%, down 2.4pct from 2020. Among them, the gross profit margin of equipment business was 25.8%, down 0.9pct, and the profitability of the company's equipment business has good toughness; The gross profit margin of electric drive business in 2021 was 10.52%, down 5pct, which was the main reason for the decline of the company's gross profit margin in 2021. The electric drive business is greatly affected by the price rise of upstream raw materials. We believe that with the substantial increase in the sales volume of the company's electric drive products, especially the sales volume of products on the same platform, it will help to improve the scale effect and improve the profitability of the business.
Profit forecast and investment rating of the company: driven by two wheel business, the company's business will continue to benefit from the development of Xinneng automobile industry. Based on the company's competitive advantages in technology and product expansion ability, we are optimistic about the medium and long-term development trend of the company. It is estimated that the predicted net profit attributable to the parent company from 2022 to 2024 will be 250 million yuan, 368 million yuan and 539 million yuan, and the corresponding EPS will be 183, 269 and 393 million yuan respectively. The current share price corresponds to the PE values of 22, 15 and 10 times from 2021 to 2023 respectively, maintaining the "recommended" rating.
Risk warning: the sales volume of passenger cars is lower than expected; The development of new energy vehicles is less than expected; The expansion of the company's new products was less than expected.
