Event: the company released its semi-annual report for 2021, with operating income of 842 million yuan during the reporting period, an increase of 36.83% over the same period last year, and a net profit of 52.7 million yuan, down 38.4% from the same period last year. Net operating cash flow was-80.64 million yuan, down 897.74% from the same period last year. In the second quarter, the operating income was 582 million yuan, up 51.6% from the same period last year; the net profit of shareholders belonging to listed companies was 72.24 million yuan, up 3% from the same period last year.
Comments:
The quarter-on-quarter inflection point first appeared in the second quarter. The company's performance in the first half of the year was suppressed by many factors: the overseas COVID-19 epidemic, the US crackdown on Chinese technology enterprises, the rise in semiconductor prices, insufficient production capacity caused by the relocation of the company's factories, and so on, especially the Q1 performance was seriously affected. The company took multiple measures to actively deal with these negative factors, and achieved year-on-year + 51.6% year-on-year revenue growth and + 3% year-on-year net profit growth in Q2. We think the company is gradually getting back to its pace and the results are expected in the second half of the year.
The main industry maintains a high demeanor. The industries that make great contribution to the company's income are two passengers and one danger > Taxi >
The revenue of GM > public transport in the first half of the year was 464 million / 106 million / 148 million / 105 million, respectively, with a growth rate of 121%, 146%, 46%, 29%, 6%, respectively. In terms of two passengers and one danger, the Ministry of Transport, the Ministry of Public Security and other five departments have formulated the measures for the Safety Management of Road Transport of dangerous goods, trying to strengthen safety management in the whole chain from the source. In addition, the number of known trucks overseas is more than 120 million, including more than 40 million trucks in North America, more than 45 million in Europe, more than 30 million in the CIS, and more than 6 million in South Africa. At present, active safety in these markets is still in its infancy.
A forerunner in the field of commercial vehicle safety and information technology. The company makes full use of advanced AI, big data and other means to help commercial vehicle users solve the problems of safety and efficiency, and has a relatively deep accumulation in the field, forming a deep moat. We are optimistic about the long-term development of the company.
Investment suggestion: it is estimated that the EPS from 2021 to 2023 will be 1.36,1.92,2.50 yuan respectively, compared with the same period last year, with a rating of "Buy-A", which is + 0%, 42% and 30%, respectively, compared with the same period last year.
Risk hint: the intensification of Sino-US trade war, the risk of raising the price of raw materials, and the company's business development is not as expected.