Events:
The company released a semi-annual report that 2021H1's total operating income was 857 million yuan, an increase of 48.92% over the same period last year, and its net profit was 94 million yuan, an increase of 9.79% over the same period last year. The net profit was 89 million yuan, up 103.41% over the same period last year.
Of this total, 21Q2's total revenue was 428 million yuan, an increase of 26.47 percent over the same period last year, a slight decrease of 0.12 percent compared with 21Q1, and a net profit of 48 million yuan, a slight decrease of 3.9 percent over the same period last year and an increase of 5.78 percent.
Investment Summary:
The leading effect of basic pan pump products + domestic substitution and upgrading, boosting the continued high growth of the main industry. In the first half of the year, the company's diesel engine oil pump sales revenue increased by 39.72% compared with the same period last year, an increase of 38.81% compared with the same period in 19 years; gasoline engine oil pump sales revenue increased by 98.46% year-on-year, an increase of 91.6% over the same period in 19 years; gearbox pump sales revenue increased by 131.91% year-on-year, an increase of 391.17% over the same period in 19 years. As the absolute leader in the field of oil pump, the company has a prominent leading effect in the recovery period of the industry, and its business growth rate has substantially outperformed the average growth rate of the commercial vehicle and passenger vehicle market in the same period. In addition, the company seized the opportunity of domestic alternative upgrading to obtain a 10-year global supply agreement for Daimler-Benz, and expanded the scale of cooperation with Ford and Stellantis. As the company deepens the global support, the profit level is expected to continue to improve, laying a solid foundation for the future high growth of the main industry.
Develop new pump products and join in new energy sources. Aiming at the trend of the industry, the company has developed thermal management system electronic pumps, gearbox pumps, vacuum pumps and other products, which can be used in pure electric, hybrid and hydrogen fuel cell vehicles. Toyota, Cummins, Aixin, BYD, Geely and other domestic and foreign car companies have plenty of orders on hand. In the first half of the year, the company added new energy commercial vehicle customers such as FAW Group and Peca in the United States. The company's fund-raising projects are mainly used for energy conservation and new energy auto parts intelligent manufacturing technology transformation projects, capacity expansion is orderly, with the gradual landing of relevant orders, it is expected to open the company's second growth space.
Forward-looking layout intelligent driving ecology to expand the circle of friends, the executive layer EPS has a batch order, L4 products have been equipped with unmanned ferry to achieve export. The company cooperates with Yazhou District of Sanya City and Changan Automobile Union, participates in the construction of intelligent driving test base, lays out intelligent networking and intelligent driving system companies, and provides intelligent driving products for vehicles and carries out testing and verification work. The company's intelligent driving executive layer product EPS has been equipped with Changan, well-off, FAW-Volkswagen Jetta brand models. At the same time, the intelligent driving execution system (L4 adaptation EPS) and control module (ECU) developed by the company for L4 intelligent driving have been matched and sold on the unmanned ferry bus / intercity unmanned bus.
The profitability is stable, the three fees are steadily falling, and the R & D investment continues. The company's sales gross profit margin is 28.37% (+ 0.69pct), and the net profit margin is 10.66% (- 4.52pct), which is basically stable, and the net profit margin is the same as that of the same period in previous years. Thanks to the high revenue growth, the company's premium rate for the period was 14.39%, a year-on-year decline of 2.75pct, in which sales, management and financial rates decreased by 1.85pct, 0.7pct and 0.2pct, respectively. In terms of R & D, it has maintained a high R & D investment, with a R & D rate of 7.1% (+ 0.52pct), supporting the company's forward-looking leading position in technology.
Investment suggestion: we expect the company's operating income from 2021 to 2023 to be 1.748 billion yuan, 2.162 billion yuan and 2.603 billion yuan respectively, the net profit attributable to the shareholders of the listed company is 228 million yuan, 278 million yuan and 337 million yuan respectively, and the earnings per share are 1.42,1.73 yuan and 2.1yuan respectively, and the corresponding PE are 15.42X, 12.67X and 10.45X respectively. Maintain a "buy" rating.
Risk tips: car sales fall short of expectations, customer expansion progress is not as expected, raw material costs rise, the risk of intensified competition in the industry.
