Event: the company released three quarterly reports, 3q21, the company achieved operating income of 4.4 billion yuan, return to the mother net profit of 300 million yuan, year-on-year + 5%, deducting non-return net profit of 250 million yuan. At the same time, the company issued a profit distribution plan, which intends to distribute a cash dividend of 32 yuan (including tax) to all shareholders for every 10 shares.
The performance is in line with expectations and the intensity of dividends is unprecedented. 3q21, company revenue 4.4 billion yuan, year-on-year-3%, deducting non-net profit 250 million yuan, year-on-year-7%, month-on-month decline, mainly due to lack of core. The company intends to distribute a cash dividend of 32 yuan (including tax) to all shareholders for every 10 shares, demonstrating the company's sincerity in rewarding shareholders. At the same time, the company is scheduled to increase by no more than 2.219 billion yuan, major shareholders intend to subscribe in full, and there is sufficient confidence in future development.
Internal and external accessories: smooth development of Japanese car customers, product upgrading continues to increase the value. As a leading enterprise of ornaments, the company's interior accessories are positioned as a high-end route, and it is expected to promote rapid business growth through rising volume and price in the future: 1) quantity: the company has successfully developed Japanese car customers represented by Toyota, and is expected to further increase its supply share in the future. at the same time, binding Tesla, Inc., NIO Inc. and other new energy vehicle companies, fully benefit from the rise of new energy vehicle sales. 2) Price: after the automobile electric intelligence, the technology of interior decoration and the trend of interior decoration are obvious, and the bicycle value of the company's products is expected to continue to increase. The company's competitive advantage: 1) the company's interior products have high certification threshold + nearby supporting advantages, and the price advantage will be further enhanced after the factory moves to the area with low labor cost; 2) the certification time of parts manufacturers is longer, which generally takes 2-3 years. Customer stickiness is high.
Automotive electronics: the rapid growth of new energy supporting business, fully benefiting from the rise of new energy vehicle sales. 21H1, the company's automotive electronics business gross profit of 200 million, yoy+68%, gross profit margin of 26%. At present, the company has laid out new energy-related products, which will fully benefit from the rise of new energy vehicle sales: 1) Tesla, Inc.: the company is the global supplier of model Y, and it is expected to obtain more product matching qualifications in the future, driving the rapid development of business through Tesla, Inc. 's sales growth + the improvement of bicycle matching value; 2) batteries: subsidiary Ningbo Shilam matching battery enterprises supply battery package module plastic parts. We expect the global battery demand for 267,431 and 583GWh in 21-23 years to help thicken the company's performance.
Metal parts: core customers start a new product cycle, and the high demand for batteries drives business growth. The company's thermoforming products are deeply matched with FAW-Volkswagen, benefiting from the opening of a new product cycle by core customers. At the same time, the company expanded production to support new customers, and developed battery cladding products, supporting Volkswagen and Audi, benefiting from the increased battery demand brought about by the high sales growth of new energy vehicles.
Investment suggestion: the company is the leading target of domestic automobile interior and exterior decoration, with optimized customer structure and layout of new energy products, fully benefiting from the rapid development of new energy field. At the same time, after the automobile electric intelligence, the trend of science and technology of interior decoration and interior decoration is remarkable, and the value of the company's bicycles is expected to continue to increase; the closure of the loss-making German factory in the past 20 years has solved the long-standing problem of sustained losses in overseas business, and the reversal of overseas operations is imminent; the actual controller intends to subscribe for all shares to show confidence in the development of the company. We expect the company's 2021-2023 net profit to be 1.4 billion, 1.6 billion and 1.9 billion respectively, corresponding to 11, 9 and 8 times PE respectively, maintaining an overweight rating.
Risk hint: sales of new energy vehicles are lower than expected, exchange rate risk, industry size and other data are lower than expected, and the public information used in the research report may lag behind or not be updated in a timely manner.
