\u3000\u3000 China Automotive Engineering Research Institute Co.Ltd(601965) (601965)
Events
The company released the performance express for 2021. The company expects to achieve a revenue of 3.83 billion yuan in the whole year, with a year-on-year increase of 12.1%; The net profit attributable to the parent company was 692 million yuan, a year-on-year increase of 23.86%; Net profit deducted from non parent company was 570 million yuan, with a year-on-year increase of 15.85%. Among them, 21q4 is expected to achieve a revenue of 1.24 billion yuan, a year-on-year increase of 20.8%; The net profit attributable to the parent company was 196 million yuan, a year-on-year decrease of 10.11%; The net profit attributable to the parent company after deduction was 173 million yuan, a year-on-year increase of 5.56%.
Key investment points
Q4 high revenue growth, technical service and equipment business continued to develop
21q4’s revenue reached 1.24 billion yuan, a record high in the single quarter, an increase of 20.8% over the same period last year and 57% over Q3. It is expected that it will be the incremental contribution of technical service and equipment business. 21q1 / Q2 / Q3 of technical service and equipment business increased by 48.2% / 26.2% / 20.7% respectively year-on-year. Q4 is expected to continue to develop, The main reason is that the implementation of the four national laws and regulations on non road machinery has brought new testing projects and new energy intelligent network testing, which has gradually driven the demand for R & D testing.
Q4 gross profit margin remained high, net profit attributable to the parent company after deduction of non profit was + 5.6% year-on-year
In 2021, the company’s gross profit margin was 33.6%, with a year-on-year increase of + 2.88 PCT, of which 21q4 gross profit margin was 36.4%, maintaining a high level of -2.47 PCT year-on-year and -3.31 PCT month on month. It is expected that the proportion of R & D testing will increase. Due to the decline of gross profit margin, decrease of other income and increase of impairment in 21q4, the growth rate of net profit attributable to parent company after deduction of non capital was only 5.6%, lower than the growth rate of revenue.
Embrace the era of change and expand the testing capacity of new energy vehicles and intelligent Internet connection
In November 2021, the company signed the investment cooperation agreement with Suzhou New District Hi-Tech Industrial Co.Ltd(600736) District, and plans to invest 2 billion yuan to build China Automotive Engineering Research Institute Co.Ltd(601965) East China base, which mainly builds the R & D, testing and testing capabilities of new energy vehicles and intelligent networked vehicles, including the R & D and testing capabilities of new energy vehicles and three electricity, as well as the testing capabilities of on-board software, intelligent cockpit, wireless communication and electrical architecture. After the completion of the project, the company will comprehensively improve its technical service strength in East China, the core automobile industry cluster, and meet the needs of new energy vehicles and intelligent network detection business.
Profit forecast and valuation
The company is one of China’s six major automobile testing centers fully authorized by the government and has high-quality assets and equipment of leading peers. The platform-based manufacturing of vehicles shortens the model replacement cycle, greatly improves the number and launch speed of new vehicles compared with the past, and will benefit from regulatory testing; At the same time, the stricter emission standards and the improvement of vehicle quality requirements will bring about the growth of testing projects and R & D testing demand. The process of electric intelligence will accelerate the release of intelligent network testing demand, and the company will fully benefit from the era of electric intelligence. It is estimated that the company’s revenue in the year of 21-23 will be RMB 3.83/43.2/4.91 billion, yoy will be 12.13% / 12.75% / 13.64%, the net profit attributable to the parent company will be RMB 6.9/8.1/950 million, yoy will be 23.86% / 17.75% / 16.81%, corresponding to PE 24.52/20.83/17.83 times, maintaining the “buy” rating.
Risk tips
The implementation of smart Internet policy is less than expected, the penetration of smart Internet is less than expected, and the innovative business is less than expected
