Brief comment on performance
The company released its three-quarter report on October 28, with revenue of 1.011 billion yuan in the first three quarters, an increase of 30% over the same period last year, and net profit of 154 million yuan, up 31% from the same period last year. In the third quarter, the company's revenue was 340 million yuan, up 8% from the same period last year, down 4% from the previous year; the net profit from its parent was 47 million yuan, down 14% from the same period last year and 15% from the previous year.
Business analysis
New product volume, Q3 revenue against the trend year-on-year growth. The company's revenue growth over the same period last year is mainly due to new incremental products, including new energy vehicle connectors and sensors mass-produced by Volkswagen MEB. Therefore, in the context of the serious impact of lack of core in the steering system, the company's revenue fell only 4% in the third quarter compared with the same period last year, which is much better than that of Auto Zero. Due to factors such as rising raw material costs, the company's net interest rate in the third quarter was 14%, down 3.6% from a year earlier and 1.8 percentage points from a month earlier.
Volkswagen MEB platform to boost the company's performance growth. Domestic MEB platform sales in the third quarter were 22000, up sharply from 8000 in the second quarter. Sales of the MEB platform exceeded 10,000 in September, and Volkswagen's MEB platform launched a large terminal discount in October, and sales are expected to exceed expectations in the fourth quarter and next year. The bicycle value of the company's supporting MEB platform is about 800 yuan, which will effectively promote the performance growth of the company.
High-voltage, high-speed connectors look forward to mass production. The new energy vehicle connectors that the company has mass produced include: electric shaft drive system components, battery management system components, high voltage DC inverter system components, etc. The company is researching products including fisheye terminals, 5G high frequency connectors, high current connectors for new energy vehicles, etc., to cater to the trend of intelligent, electric and high-end manufacturing of automotive connectors, and look forward to mass production.
Profit adjustment and investment advice
The homing net profit of the fine-tuning company from 2021 to 2023 was RMB 230,000,000 respectively (down by 8 per cent, respectively, by 5 per cent), and the corresponding EPS was 0.57pm, 0.76max, 1.03 yuan respectively. The company is a high-quality domestic automobile connector company, leading products are used in gearboxes and steering systems with high safety levels, and there are few domestic competitors. In the high-end field, the company is expected to win by virtue of the process barrier, and in the middle and low-end field, it is expected to win with performance-to-price ratio through automated production. It will be given a "buy" rating of 35 times PE in 2022, corresponding to the target price of 26.62 yuan per share.
Risk hint
The risk that the sales volume of new energy vehicles and connector orders are lower than expected; the risk that the progress of the research project is lower than expected; the risk of shrinking the business of traditional fuel vehicle connectors in the long-term dimension; and the risk of lifting the ban on restricted shares.