\u3000\u3 Shengda Resources Co.Ltd(000603) 596 Bethel Automotive Safety Systems Co.Ltd(603596) )
Core view
The results in the first quarter were in line with expectations. In the first quarter, the revenue was 1.014 billion yuan, a year-on-year increase of 29.0%; The net profit attributable to the parent company was 138 million yuan, a year-on-year increase of 8.3%; The net profit deducted from non parent company is 112 million yuan, which is basically the same year-on-year. The growth rate of profit side is lower than that of revenue. It is expected to be affected by the rise of raw material prices.
In the first quarter, the gross profit margin was under short-term pressure, and the expense rate increased due to the increase of R & D investment and interest payment of convertible bonds. In the first quarter, the gross profit margin was 22.5%, a year-on-year decrease of 3.2 percentage points. The decline in gross profit margin is expected to be mainly due to the rise in the price of raw materials. During the first quarter, the expense rate increased by 2.4 percentage points year-on-year, of which the R & D expense rate increased by 1.5 percentage points year-on-year, mainly due to the increase of R & D investment in the current period; The financial expense rate increased by 0.8 percentage points year-on-year, mainly due to the withdrawal of convertible bond interest in the current period. The net cash flow from operating activities in the first quarter was - 138 million yuan, a year-on-year decrease of 83.0%, which is expected to be mainly due to the increase in cash paid for purchasing goods and receiving labor services compared with the previous year.
The fixed-point and mass production delivery of new projects are progressing smoothly. The company continued to increase R & D investment and steadily promoted new product R & D and market promotion. In the first quarter, the company added 47 designated projects, involving 22 new models, including 22 new energy vehicle projects, involving 11 new models. The newly added projects mainly include 25 EPB projects of electronic parking system, 7 wcbs projects of brake by wire system and 8 lightweight projects. In the first quarter, the company put into operation 8 projects, involving 4 models. The smooth progress of fixed-point and mass production delivery of the company's new projects will contribute to the improvement of the company's comprehensive competitiveness and provide guarantee for the sustained and rapid growth of the company's revenue and profit.
It is proposed to launch a new restricted stock incentive plan. According to the company's announcement, the company plans to carry out a new restricted stock incentive plan, and plans to grant 416000 restricted shares to the general manager of the company, with a planned grant price of 27.89 yuan / share. The evaluation indicators of the incentive plan are the company's revenue growth rate and the individual performance of the incentive object. The performance evaluation objective of the full exercise is: Based on the revenue in 2021, the company's revenue growth rate from 2022 to 2026 shall not be less than 15.00%, 32.25%, 52.09%, 74.90% and 101.14% respectively (i.e. the annual revenue growth rate from 2022 to 2026 shall not be less than 15%). On the one hand, the incentive plan can attract and retain excellent talents, fully mobilize the enthusiasm of the company's management team and improve the company's long-term incentive mechanism; On the other hand, it puts forward clear business objectives for the next five years, which will help closely combine the interests of shareholders, the company and the personal interests of incentive objects, so that all parties can pay common attention to the long-term development of the company and ensure the smooth realization of the company's development strategy and business objectives.
Profit forecast and investment suggestions
Forecast of eps1 from 2022 to 202454, 1.92 and 2.38 yuan. According to the 22-year PE valuation and with reference to the valuation of comparable companies, the 22-year 40 times valuation is given, and the corresponding target price is 61.6 yuan, maintaining the buy rating.
Risk tips
The supporting quantity of automobile electronic control braking is lower than expected, the supporting quantity of automobile lightweight products is lower than expected, and the uncertainty of overseas epidemic time affects the supporting quantity of downstream automobile enterprises.
