The revenue and net profit increased significantly, and the company's performance turned from loss to profit.
The company forecasts a turnaround in 2021, with expected revenue of 18.5-1.9 billion yuan, an increase of 62%-66% over the same period last year; after deducting revenue of 17.2-1.77 billion yuan, an increase of 59%-63% over the same period last year; return-to-mother net profit of 0.18-27 million yuan, an increase of 103%-104% over the same period last year; mother deduction of non-net profit loss of 1.15-124 million yuan, an increase of 81-82% over the same period last year Basic earnings per share ranged from 0.037 to 0.056 yuan per share, an increase of 103 percent over the same period last year. The company's profit indicators have improved significantly, mainly due to the substantial growth of new energy vehicle drive motor business.
New energy-driven motors grow by more than 250% year-on-year, and rising raw material costs squeeze profits
In 2021, with the rapid development of the domestic new energy vehicle market, the company's new energy vehicle drive motor business increased by more than 250% compared with the same period last year. But at the same time, due to the sharp rise in the prices of commodities such as copper, aluminum and silicon steel, the company's raw material costs rose, affecting the company's operating profit growth lower than operating income growth, net profit after deducting non-recurrent profit and loss is still a loss. We believe that the prosperity of the industry continues, the new drive motor production capacity is put into production, and the company's profitability continues to improve.
High-quality customers continue to expand, and the new production capacity is expected to reach production by 2024.
According to the company's financial report, in the first half of 2021, the company shipped more than 190,000 new energy-driven motors, which continued to be in the forefront of the industry, and its market share further increased. The company's mass production drive motor is mainly used in SAIC GM Wuling MINIEV, XPeng Inc. P7, Geely Dihao EV and other models. The new energy vehicle drive motor developed by the company for Weiran Power, SAIC passenger cars and Chery is progressing smoothly and is expected to be mass produced in the fourth quarter of 2021. In addition, the company has also acquired the SAIC GM Wuling GSEV project and two hybrid projects, and the development of other new customers and new projects is also progressing smoothly. The company will have a drive motor production capacity of 500,000 units per year by the end of 2021, and it is currently in the stage of full production. In order to meet the needs of customers, the company has started a project to increase the annual production of 1 million drive motors, which is expected to invest 500 million yuan, and the project is expected to increase its annual operating income by 2.5 billion yuan in 2024.
Risk hint: sales of new energy vehicles fall short of expectations; commodity prices continue to rise.
The core target of the drive motor, which is rated as "increasing holding".
It is estimated that the EPS for 21-23 years will be 0.05max 0.26x0.60 yuan, and the PE of the previous share price will be 249x46max 20x, which will be rated as "overweight".
