\u3000\u3000 Foryou Corporation(002906) (002906)
Core view
Event: the company issued the performance forecast for 2021.
The performance is in line with expectations. In 2021, the net profit attributable to the parent company was RMB 280 million-300 million, with a year-on-year increase of 54.7% – 65.7%, and the net profit after deduction was RMB 242 million-262 million, with a year-on-year increase of 103.0% – 119.8%. In the fourth quarter, the net profit attributable to the parent company in a single quarter ranged from 72 million yuan to 92 million yuan, with a year-on-year change range of – 21.7% – 0.1%, a month on month increase of 0.6% – 28.7%. The net profit after deduction was 66 million yuan to 86 million yuan, a year-on-year increase of 13.2% – 47.5% and a month on month increase of 5.9% – 37.9%. The performance growth in 2021 was due to the significant increase in orders for intelligent cockpit products such as HUD and digital instruments and precision die casting, Digest the impact of price rise of some raw materials by reducing costs. In 2021, the company’s non recurring income decreased by about 22 million yuan over the previous year, and the equity incentive fee increased by about 10 million yuan over the previous year.
HUD technology, customers and order reserves are sufficient, which is where the company’s profit growth elasticity lies. The company has a complete intelligent cockpit and some intelligent driving product lines. The products include on-board display, HUD, digital instrument, wireless charging, etc. a variety of HUD products have achieved mass production. In 2021, the company’s w-hud product technology has been greatly upgraded to provide ar-hud for GAC motor gs8 and produce goods in quantity. HUD cooperative customers have expanded from independent brands such as great wall, Chang’an and GAC to Dongfeng Honda Vietnam vinfast and other foreign and joint venture brands. HUD products of the company have technical advantages, which have broken through the core technical difficulties such as sunlight backflow, image distortion correction and eye tracking, and have comprehensive advantages in technical reserves, customer orders, manufacturing processes and so on. With the rapid development of autonomous driving, HUD penetration is expected to increase rapidly. It is expected that the company is expected to expand more relevant customers and obtain new orders. The supporting volume of HUD products is expected to become the elasticity of performance growth.
The cockpit domain controller has been designated by several customer projects and is expected to contribute more performance increment. The company has developed a cockpit domain controller with high integration and scalability, which has been verified by design and engineering. The cockpit domain controller is equipped with a variety of chip schemes such as Qualcomm, Renesas and Centrino, and has been designated by multiple customer projects. The cockpit domain controller product launched with BlackBerry QNX as the software platform has been designated by the main engine factory of a head bus brand in China. The company has rich product lines in the cockpit field, and more products are expected to combine with the domain controller to promote the increase of single vehicle value. The cockpit domain control can realize multi screen interconnection and cross screen display, bring better interactive experience to consumers, and is expected to further increase the volume and promote the growth of performance.
Profit forecast and investment suggestions
Slightly adjust the expense rate, etc. it is predicted that the company’s EPS from 2021 to 2023 will be 0.62, 0.95 and 1.23 yuan respectively (the original 0.66, 0.95 and 1.23 yuan), which can be compared with the company’s pe75 times in 22 years, and the PE valuation will be 75 times in 22 years. The corresponding target price is 71.25 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.
