\u3000\u3 China Vanke Co.Ltd(000002) 906 Foryou Corporation(002906) )
The first quarter performance exceeded expectations. In the first quarter, the revenue was 1.200 billion yuan, a year-on-year increase of 25.2%; The net profit attributable to the parent company was 69 million yuan, a year-on-year increase of 25.6%; Net profit deducted from non parent company was 65 million yuan, with a year-on-year increase of 19.7%. In the first quarter, the company overcame the difficulties such as the decline in production and sales of downstream customers, and achieved high year-on-year growth in performance. It is expected that the main reason is the rapid growth of revenue from automotive electronics and precision die casting business.
After adjustment according to the same caliber, the gross profit margin increased year-on-year, and the cash flow improved significantly. The gross profit margin in the first quarter was 22.0%, with a year-on-year decrease, mainly due to the adjustment of the company’s accounting standards in 2021, which included the freight generated by the performance of contractual obligations into the operating cost (after adjustment according to the same caliber, the gross profit margin in the first quarter of 2021 was 21.5%, and the gross profit margin in the first quarter of 2022 increased by 0.5 percentage points year-on-year). Under the same caliber, the expense rate in the first quarter increased by 0.4 percentage points year-on-year, of which the management expense rate decreased by 0.8 percentage points year-on-year, and the R & D expense rate increased by 1.6 percentage points year-on-year, mainly due to the increase of R & D investment in the current period. In the first quarter of 2022, the net cash flow from operating activities was -03 million yuan, with a year-on-year increase of 95.9%, mainly due to the increase in sales revenue and customer collection in the current period.
The development of new products and orders for automotive electronics business is smooth. The company has a rich automotive electronic product line, continuous iterative upgrading of products and continuous introduction of new intelligent products. Since 2022, new products and new orders have been developed smoothly. The cockpit domain control products cover mainstream chip solutions such as Qualcomm, Renesas and Xinchi, and have been designated by many automobile enterprises such as Chang’an and great wall; HUD’s early orders have been mass produced one after another, and the shipment volume has increased rapidly. In 2022, it won the new fixed-point projects of great wall, Dongfeng, jinkangsailis and other auto enterprises; Digital key, Yu eye camera, 360 look around system, DMS, APA, DAB and other products have obtained mass production or fixed-point projects; The new product digital power amplifier is equipped with dual DSPs and multi speaker channels, which has won the fixed-point projects of great wall, Chang’an and other automobile enterprises; Electronic exterior rearview mirrors and intelligent cockpit multimodal interactive solutions have been introduced to the market. The development of new products and new orders will continue to improve the company’s market competitiveness and escort the company’s long-term development.
The precision die casting business continued to improve and achieved a number of new fixed-point projects. The company’s precision die casting business continues to improve, and continues to develop new businesses and technologies. In 2021, the company extended the magnesium alloy product line and precision injection molding business, and made breakthroughs in the technical fields of mold multi cavity, high vacuum and hot runner, laying a solid foundation for developing the market of lightweight and intelligent products. In 2022, the precision die casting business obtained new fixed points for customers such as precision machinery, Valeo, ThyssenKrupp, Byd Company Limited(002594) , Contemporary Amperex Technology Co.Limited(300750) , Haila and Tyco. The products include new energy three electricity system, HUD, lidar, automobile connector, smart key and steering parts. The new fixed point project will promote the profitability of the precision die casting business.
It is predicted that the company’s EPS from 2022 to 2024 will be 0.86 yuan, 1.24 yuan and 1.72 yuan respectively, which is 53 times that of the comparable company in 22 years. The PE valuation of 53 times in 22 years will be given, and the corresponding target price will be 45.58 yuan, maintaining the buy rating.
Risk tips
The supporting volume of automotive electronics business is lower than expected, the precision die casting business is lower than expected, and the shortage of automotive chips.
