Core conclusion
Event: in the first half of 2021, the company achieved main business income of 250.872 million yuan, an increase of 26.54% over the same period last year, a net profit of 41.3801 million yuan, an increase of 12.15% over the same period last year, and a net profit of 35.9601 million yuan, an increase of 4.67% over the same period last year.
The intelligent business is growing at a high speed, and the controller business is making remarkable progress. Revenue growth mainly comes from the growth of pre-and post-loaded advanced auxiliary driving systems and intelligent enhanced driving systems, of which the income of front-loaded intelligent products is 27.08 million yuan, an increase of 64% over the same period last year, and customers add Jinlong, BeiBen, Geely commercial vehicles, etc.; the revenue of rear-loaded intelligent products is 24.08 million yuan, an increase of 177% over the same period last year, the epidemic situation has been alleviated, and key cities have shipped and installed one after another. In addition, in the first half of 2021, the company invested in setting up a holding subsidiary, Beijing Yubo, which is responsible for the research and development of automobile controller products. At present, it has signed technology development agreements with a number of mainframe factories to supply Sinotruk. At present, the subsidiary has sufficient business volume. In the future, the team will be gradually expanded to the direction of commercial vehicle domain controllers.
Q2 business is temporarily under pressure, and R & D investment is increasing. The company's Q2 performance has declined, and since the second quarter, the growth rate of vehicle sales of downstream customers has begun to decline, causing greater pressure on the company's business; at the same time, the tight supply of some raw materials and rising prices are more prominent, which have a certain impact on the company's supply and cost. At the same time, the company increased investment in R & D. during the reporting period, R & D expenses totaled 48.015 million yuan, accounting for 19.14% of the current income, an increase in 0.86pct compared with the same period last year.
The growth logic remains unchanged, and we look forward to a rebound in performance. Short-term industry fluctuations do not change the trend of intelligent network penetration.
The company is a pioneer and forerunner in the field of commercial vehicles, with the continuous introduction of favorable policies in the industry, the upgrading of downstream customer demand, and the strong driving force for the long-term growth of the company's business, as the pressure on the cost side is digested and the downstream demand picks up. The company's performance growth is expected to gradually improve. We forecast that the company's net profit from 2021 to 2023 will be 1.26,1.72 and 218 million yuan, and the PE will be 30,22,18x, maintaining the company's "buy" rating.
Risk hints: downstream demand is less than expected risk; raw material shortage and price rise risk; related policies promote less than expected risk.