\u3000\u3 Shengda Resources Co.Ltd(000603) 179 Jiangsu Xinquan Automotive Trim Co.Ltd(603179) )
Core view
Q1 results were better than expected. In the first quarter, the revenue was 1.49 billion yuan, a year-on-year increase of 33.3%; The net profit attributable to the parent company was 83 million yuan, a year-on-year decrease of 13.3%; Net profit deducted from non parent company was 80 million yuan, with a year-on-year increase of 6.5%. In the first quarter, the company overcame the adverse factors such as the shutdown of Shanghai factory due to the epidemic, and the revenue still achieved high year-on-year growth.
After adjustment according to the same caliber, the gross profit margin decreased due to the impact of costs, and the cash flow improved significantly. The gross profit margin in the first quarter was 19.5%, with a significant year-on-year decrease, mainly due to the adjustment of the company's accounting standards in 2022, which included the transportation expenses incurred in performing the customer's sales contract before the control of the goods was transferred to the customer into the operating cost (after retroactive adjustment according to the same caliber, the gross profit margin in the first quarter of 2021 was 21.6%, and the gross profit margin in the first quarter decreased by 2.1 percentage points year-on-year, which is expected to be affected by the rise of raw material prices, product structure adjustment and other factors). During the first quarter of the same caliber, the expense rate decreased by 0.1 percentage points year-on-year, of which the sales expense rate increased by 0.4 percentage points year-on-year and the R & D expense rate decreased by 0.3 percentage points year-on-year. The net cash flow from operating activities in the first quarter was 182 million yuan, a significant increase of 363.2% year-on-year, mainly due to the increase in cash received in the current period.
Focusing on expanding the supporting business of new energy vehicles, it has entered the supporting system of new energy vehicle enterprises in China. With the resumption of work and production of downstream vehicle enterprises, it is expected that the company will enter the replenishment stage in the second quarter. While continuing to strengthen cooperation with independent brands and strive for more market share, the company focuses on expanding new energy vehicle customers, and has supplied products for Chinese foreign brand new energy vehicles such as international well-known brand electric vehicle enterprises, ideal, Weilai, Byd Company Limited(002594) , SAIC, Geely and GAC new energy. With the expansion of the sales scale of international well-known brand electric vehicle enterprises, the supporting scale of the company increases accordingly. It is expected that after the epidemic is controlled, the downstream vehicle enterprises will accelerate the production pace and replenish the inventory, and the company will enter the replenishment stage.
It is proposed to establish a new branch, improve the industrial layout and continue to promote the internationalization strategy. According to the company's announcement, the company plans to set up a new branch in Hangzhou, which will help improve the company's industrial layout, further expand production capacity and have a positive impact on the company's subsequent operation. With the development of overseas business of the company's main customers, the company closely follows the pace of customer development, successively establishes production bases and subsidiaries in Malaysia, Mexico, the United States and other places, strengthens the marketing service ability for customers in Southeast Asia and North America, and lays the foundation for developing new customers and orders in overseas markets.
Profit forecast and investment suggestions
Due to the conversion of the company's share capital, it is predicted that eps1 will be in place from 2022 to 202404, 1.52 and 2.06 yuan. According to the 22-year PE valuation and with reference to the valuation of comparable companies, 30 times PE will be given in 2022, with the target price of 31.2 yuan, maintaining the buy rating.
Risk tips
The demand of passenger car industry is lower than expected, and the supporting quantity of passenger car and commercial vehicle products is lower than expected.
