\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 27 Shanghai Huace Navigation Technology Ltd(300627) )
Core view
The performance of 2021 and 22q1 is generally in line with expectations. In 2021, the company achieved a revenue of 1.9 billion yuan, a year-on-year increase of + 35%, and a net profit attributable to the parent company of 290 million yuan, a year-on-year increase of + 49%; 22q1 company achieved a revenue of 420 million yuan, a year-on-year increase of + 22%, and a net profit attributable to the parent company of 70 million yuan, a year-on-year increase of + 35%. The overall performance is in line with expectations.
Each business segment achieved good growth. In 2021, the company’s four application sectors achieved good growth: (1) the revenue of construction and infrastructure sector was 860 million yuan, a year-on-year increase of + 26%; (2) The revenue of geospatial information sector was 350 million yuan, a year-on-year increase of + 35%. The company has established in-depth cooperation with survey units in 11 cities; (3) The revenue of resources and public utilities sector was 610 million yuan, a year-on-year increase of + 52%. The market share of the company’s agricultural machinery driverless products and ground disaster monitoring products was leading; (4) Siasun Robot&Automation Co.Ltd(300024) and driverless segment revenue was 89 million yuan, a year-on-year increase of + 27%. The company has reached cooperation with Alibaba, tage Zhixing and other companies in the fields of low-speed Siasun Robot&Automation Co.Ltd(300024) , mine car and has been designated as the fixed point supplier of Nezha, Geely lutes, Byd Company Limited(002594) , Great Wall in the field of passenger vehicles. The cost and expense control ability is excellent, and the profitability is rising steadily. In 2021, the gross profit margin of the company was 54.6% (year-on-year + 0.3pct) and the net profit margin was 15.5% (year-on-year + 1.5pct). Under the background of rising raw material prices, the net profit margin reached a new high since 2018, reflecting the excellent cost and expense control ability of the company. 22q1, the company’s gross profit margin was 60.4% (year-on-year + 1.5pct), mainly due to cost control and changes in product structure; The net interest rate was 15.8% (year-on-year + 1.5pct), and the overall profitability increased steadily.
Policy dividend, steady growth and automatic driving, with strong demand for high-precision applications. In terms of policy, the company is expected to benefit from the comprehensive promotion of real scene 3D China Construction and the continuous procurement of geological disaster monitoring. Under the tone of “steady growth” in China in 2022, the demand of construction and infrastructure sector is also expected to be released. In the field of passenger cars, the company’s products have been fixed-point supplied to a number of car enterprises, and the project cycle is 20212026, which is expected to become an important performance increment of the company. Superposition company actively expanded overseas markets. In 2021, the revenue in foreign markets was 320 million yuan, with a year-on-year increase of + 59%. There was strong demand for high-precision applications outside China. Continuous R & D and innovation, and actively ensure product supply. In 2021 and 22q1, the R & D expense rate of the company exceeded 17%, and actively invested in core technology fields such as chip and SWAs system to consolidate technical barriers. Facing the supply chain shortage and the negative impact of the epidemic, on the one hand, the company actively prepared goods. The inventory of 22q1 reached 410 million yuan, with a net increase of 30 million yuan in the quarter; On the other hand, the company’s dual base layout in Wuhan and Shanghai helps to coordinate production, improve anti risk ability, reduce the impact of the epidemic, ensure product supply, and is expected to continue a good growth trend.
Risk warning: the downstream market demand is less than expected; The epidemic situation repeatedly affects production and supply; Overseas market development was less than expected.
Investment advice: maintain the profit forecast and maintain the “buy” rating.
Maintaining the previous profit forecast, it is estimated that the net profit attributable to the parent company in 22-23 years will be RMB 380 / 550 million respectively, and the corresponding PE will be 32 / 22 times respectively. The demand for high-precision applications continues to be strong. The company is in a leading position in China in many fields, continues R & D and innovation, and consolidates competitive barriers, which is expected to continue to benefit; In addition, the passenger car automatic driving business is expected to bring important performance increment, optimistic about the growth of the company and maintain the “buy” rating.
