\u3000\u3 China Vanke Co.Ltd(000002) 920 Huizhou Desay Sv Automotive Co.Ltd(002920) )
Key investment points:
Revenue and net profit growth achieved high growth, in line with market expectations. The company released the quarterly report of 2022q1. Q1 achieved a revenue of 3.14 billion yuan, a year-on-year increase of + 53.9% and a month on month increase of – 3.8%; The net profit attributable to the parent company was 320 million yuan, with a year-on-year increase of + 39.2% and a month on month increase of – 6.9%; Deduct the net profit not attributable to the parent company of 310 million yuan, a year-on-year increase of + 38.0% and a month on month decrease of – 9.7%. Both revenue and net profit achieved higher growth of more than 30%, which was in line with market expectations.
The expense rate continued to decline, and the gross profit margin and net profit margin declined, due to the rise in the price of upstream raw materials. The growth rate of non net profit deducted by Q1 company was lower than that of revenue, due to the slight decrease in gross profit margin and net profit margin (gross profit margin 24.0%, year-on-year -1.1pct, month on month -0.8pct; net profit margin 24.0%, year-on-year -1.1pct, month on month -0.8pct). Since Q4 of 2021, the prices of upstream raw materials such as copper, aluminum, rubber and plastics have increased significantly and continued to Q1 of this year, resulting in an increase in the cost of the company’s products. At present, the price of upstream raw materials has dropped to a certain extent, which will be conducive to the recovery of the company’s overall gross profit margin and net profit margin. The company’s expense rate continues to decline. The sales / management / R & D / financial expense rate of Q1 is 1.8% / 2.3% / 8.8% / – 0.1% respectively. The overall expense rate is -2.2pct month on month, and the management and control ability is quite excellent.
Leading enterprises in automotive intelligence have abundant orders in hand. Global automotive intelligence has entered an accelerated stage, and the company’s key components such as intelligent cockpit and domain controller will fully benefit and grow at a high speed. The company has broken through lutes, stellantis (PSA and FCA joint venture) and other important new customers, and the annual order of new projects in hand has exceeded 12 billion yuan, with a growth rate of more than 80%. The company’s core products ipu02 and ipu03 will enter the centralized delivery period this year and next, which is expected to drive the performance to achieve rapid growth.
Profit forecast, valuation analysis and investment suggestions. It is estimated that the company’s net profit attributable to the parent company from 2022 to 2024 will be RMB 1.14/16.1/2.11 billion, with a year-on-year increase of 36.4% / 42.0% / 30.7%, corresponding to EPS of RMB 2.05/2.90/3.80 and PE of 58.4/41.2/31.5 times. For the first time, the investment rating of “Buy-A” is given.
Risk tip: the impact of repeated outbreaks exceeded expectations, the impact of chip shortage exceeded expectations, and the price of upstream raw materials rose sharply.
