\u3000\u3 Shengda Resources Co.Ltd(000603) 960 Shanghai Kelai Mechatronics Engineering Co.Ltd(603960) )
Core view
The performance is lower than expected. In the first quarter of 2022, the operating revenue was 98 million yuan, a year-on-year decrease of 26.9%; The net profit attributable to the parent company was RMB 003 million, a year-on-year decrease of 98.7%. The decline in net profit was due to the decline in sales due to the epidemic and lack of core, superimposed with the rise in raw materials and freight.
Gross profit margin is under short-term pressure and cash flow is improved. The gross profit margin in the first quarter was 15.8%, a year-on-year decrease of 16.0 percentage points. It is expected that the decline in sales volume will lead to the increase of shared fixed costs and the rise in the price of raw materials and freight. During the first quarter, the expense rate was 19.1%, with a year-on-year increase of 3.2 percentage points, of which the sales expense rate was 1.7%, with a year-on-year increase of 0.5 percentage points, the R & D expense rate was 9.4%, with a year-on-year increase of 1.3 percentage points, the management expense rate was 9.2%, with a year-on-year increase of 1.4 percentage points, and the financial expense rate was – 1.2%, which was flat year-on-year. The net operating cash flow in the first quarter was -12 million yuan, with a year-on-year increase of 38.1%. It is expected that it is due to the accelerated collection of sales payment, the increase of cash received and the decrease of tax paid.
New energy vehicles have a wide range of new electronic products, laying a solid foundation for future performance growth. The company has made intensive efforts in the field of automotive electronic equipment related to new energy vehicles, continuously increased R & D investment and realized the growth of technological innovation income. Its cooperative customers include United Automotive Electronics, Bosch, Huayu magna, SAIC Volkswagen, Shanghai Volkswagen, FAW Volkswagen, etc. The motor stator and rotor equipment for new energy vehicles developed by the company has been matched with United Automotive Electronics, Nissan, Weilai, Huayu magna and other customers; Vehicle controller and charging inverter equipment to develop high-quality customers such as Eaton, Jinmai electronics and yikong power; Equipment in the field of testing and stamping of new energy batteries and power management has been supplied; ESP, IPB and other product assembly lines are supplied by Bosch worldwide, and import substitution has been successfully realized; The carbon dioxide high-pressure pipeline system has passed the Volkswagen MEB experimental certification and entered the stage of pre batch production and supply. At present, the company is increasing investment to promote the popularization of R744 heat pump products in the field of new energy vehicles. In addition, the company also actively arranges many fields such as driverless, car seats and car energy recovery system. As a leading automotive electronic equipment enterprise in China, the company continues to expand production capacity. It is expected that with the implementation of relevant technologies and products, It is expected to improve China’s delivery and realize domestic substitution, and many new products will consolidate the foundation for future performance growth
Profit forecast and investment suggestions
It is predicted that the company’s EPS from 2022 to 2024 will be 0.40 yuan, 0.53 yuan and 0.67 yuan respectively. The comparable companies are mechanical equipment, new energy vehicle industry chain and auto parts related companies. The average PE valuation of the comparable company in 22 years is 41 times, and the company is given a valuation of 41 times in 22 years. The corresponding target price is 16.4 yuan, maintaining the purchase rating.
Risk tips
The supporting quantity of Zhongyuan auto parts is lower than expected, the supporting quantity of auto automation equipment is lower than expected, and the supporting quantity of heat pump air conditioning pipeline is lower than expected.
