The company released its three-quarter report for 2021, with revenue of 1.296 billion yuan in the first three quarters, an increase of 24.89 percent over the same period last year; net profit of 53 million yuan, a decrease of 60.33 percent over the same period last year; and net profit of 37 million yuan after deduction, a decrease of 65.46 percent over the same period last year.
Revenue in the third quarter was affected by short-term events. In the third quarter of 2021, the company's revenue was 454 million yuan, an increase of 7.48% over the same period last year, mainly because of the power restriction policy that began in late September, some raw material suppliers affected the delivery of some materials, resulting in a decline in production efficiency. indirectly affected sales and the delayed delivery of some large projects due to the epidemic, affecting the realization of revenue. The company's gross profit margin in the first three quarters of 2021 was 37.36%, a decrease of 7.48 percentage points compared with the same period last year, mainly due to higher procurement costs of major raw materials.
Adhere to long-term doctrine, high investment in research and development. The company is further increasing its R & D investment, with the R & D expenditure rate of 15.31% in the first three quarters of 2021 and 14.54% in the same period last year. The sales expense rate and management expense rate in the first three quarters of 2021 increased slightly compared with the same period last year. In addition, the share payment of amortization in the second and third quarters increased significantly compared with the same period last year.
Sign cooperation with the horizon. In August 2021, the company signed a comprehensive strategic cooperation agreement with Horizon to promote in-depth cooperation in the field of commercial vehicle intelligent technology and products to achieve win-win development. And jointly released two commercial vehicle afterloading products based on Horizon Asahi 3 chip-360 look-around and forward-looking ADAS cameras. In the future, the two sides will focus on technical cooperation in key areas such as Advanced Auxiliary driving (ADAS) and self-driving.
Investment suggestion: the company is one of the core targets of the car network track, and is optimistic about the company's leading position in the global commercial vehicle market and the room for improving market penetration in the future. It is estimated that the EPS for 21-23 will be 1.36,2.13,2.72 yuan respectively, maintaining the "buy" rating.
Risk tips: industry expansion is not as expected; overseas market expansion is not as expected; industry competition is intensified.
