\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 741 Huayu Automotive Systems Company Limited(600741) )
Key investment points
Event: the company released]2021 annual report and the first quarterly report of 22 years. In 2021, the annual operating revenue reached 139.9 billion yuan, a year-on-year increase of + 4.8%; The net profit attributable to the parent company was 6.47 billion yuan, a year-on-year increase of + 19.7%; Gross profit margin was 14.4%, year-on-year -0.9pp; The net interest rate was 5.7%, year-on-year + 0.5pp. 22q1 achieved an operating revenue of 37.37 billion yuan, a year-on-year increase of + 7.2% and a month on month decrease of – 5.7%; The net profit attributable to the parent company was 1.71 billion yuan, a year-on-year increase of + 32.1%, mainly due to the increase in income and the increase in income from the sale of 27% equity of Shanghai Valeo automobile motor wiper, with a month on month increase of – 3.4%; The gross profit margin is 13.9%, with a month on month ratio of – 1pp / + 1.2pp; The net interest rate was 5.1%, with a month on month ratio of + 0.4pp / + 0.1pp.
Overcome difficulties and perform well: the company’s business covers automotive interior and exterior trim parts, functional parts, metal forming and molds, electronic and electrical parts, hot working parts, etc. the revenue in 21 years accounted for 65% / 17% / 7% / 4% / 0.4% respectively, with a year-on-year increase of + 1.9% / – 0.03% / + 14.3% / + 16.3% / + 6.5% respectively, and the net profit attributable to the parent company was + 57.6% / + 11.6% / + 32.1% / – 88.9% / – 947% respectively. 22q1 under the dual influence of the price rise of raw materials and the epidemic, the company’s revenue and profit increased steadily year-on-year, reflecting the strong resilience and anti risk ability of the company’s operation.
The neutralization strategy continues to be promoted: the company actively develops new external customers. The automobile transmission shaft, drive shaft, differential lock, etc. realize the supporting supply of independent brands such as great wall, Chang’an, Geely and GAC, and the automobile interior, seats, steering gear and drive shaft realize the supporting supply of Tesla, Byd Company Limited(002594) , weixiaoli and other new energy brands; Automotive interiors, seats and other products can be supplied to Mercedes Benz, BMW, Audi and other luxury brands. In 2021, the proportion of non SAIC customers’ revenue increased by 3.1pp to 49.2%, and the customer structure continued to be diversified and optimized.
Accelerate the research and development of new electric and intelligent products. The company has covered a complete product line of millimeter wave radar, and has obtained the fixed-point of vehicle project; Intelligent seat system, intelligent interior surface, intelligent lamp interaction system, new energy electric drive system and other products have been fixed-point or shipped. Among them, the sales of drive motor, electric drive system and battery tray increased by 160% / 1847% / 290% year-on-year. On the whole, the company’s electric and intelligent new products accelerate the R & D and implementation, and will become a new growth point of the company’s business in the future.
Profit forecast and investment suggestions. It is estimated that the company’s EPS from 2022 to 2024 will be 2.22 yuan, 2.45 yuan and 2.75 yuan respectively. The net profit attributable to the parent company will maintain a compound growth rate of 10% in the next three years, with 12 times PE in 2022 and a target price of 26.6 yuan. The first coverage will be given a “buy” rating.
Risk tips: raw material price fluctuation risk, epidemic spread risk, exchange rate risk, etc.
