\u3000\u3 Shengda Resources Co.Ltd(000603) 358 Huada Automotive Technology Corp.Ltd(603358) )
Event:
The company announced the annual report of 2021 and the first quarterly report of 2022. In 2021, the company achieved a revenue of 4.7 billion yuan, 14% year-on-year; The net profit attributable to the parent company was 360 million yuan, a year-on-year increase of 56%; 2022q1 achieved a revenue of 1.1 billion yuan, a year-on-year increase of 26%, and a net profit attributable to the parent company of 80 million yuan, a year-on-year decrease of 15%.
The business expanded steadily, and the performance in the first quarter was under pressure.
In 2021, the company's main business maintained stable growth. Jiangsu Hengyi benefited from the rapid development of new energy vehicles and the large volume of downstream customers. In 2021, it achieved a revenue of 770 million yuan, a year-on-year increase of 74%. Jiangsu Hengyi's production capacity is in the stage of rapid expansion. At present, the utilization rate of production capacity is low, resulting in a low profit margin of Hengyi in 2021. In 2021, the company's gross profit margin was 17.2%, with a year-on-year increase of 0.5 percentage points, mainly due to the improvement of sales structure. In 2022q1, the company's revenue scale maintained a steady growth, with a gross profit margin of 14.2%, a year-on-year decrease of 5.5 percentage points, mainly due to the substantial rise of raw materials and the lower than expected price transfer progress of the company to the downstream due to the epidemic.
The main business has recovered growth, and the battery box business has created the second growth curve.
We expect that with the gradual easing of chip shortage, the company's main business is expected to achieve rapid restorative growth. The battery box business is the second growth curve created by the company. Its customers cover mainstream customers such as Contemporary Amperex Technology Co.Limited(300750) , Yutong Bus Co.Ltd(600066) and Xiaopeng automobile. At the same time, after introducing Contemporary Amperex Technology Co.Limited(300750) affiliated investment companies as strategic investors, the company will further strengthen cooperation with industry leaders Contemporary Amperex Technology Co.Limited(300750) and is expected to fully enjoy the dividends of the development of new energy vehicles. At present, in order to meet the rapidly growing orders, the company has accelerated the construction of production capacity. It is expected to achieve 1.2 million sets of production capacity by the end of 2022 and 2 million sets of production capacity by the end of 2023.
Investment advice
We estimate that the company's EPS from 2022 to 2024 will be 1.08 yuan, 1.44 yuan and 1.92 yuan respectively. Maintain the "buy" rating.
Risk tips
Macroeconomic downturn; Risks such as lower than expected mass production of new process reserves.
