This report is read as follows:
With the general trend of lithium electrification of light two-wheeled vehicles, the company benefits from the outburst of revenue in the downstream light lithium electricity and small energy storage market, and the short-term disturbance of raw material price fluctuations does not change the company's long-term growth trend.
Main points of investment:
Maintain the target price of 110.03 yuan and maintain the overweight rating. Taking into account the rise in raw material prices and the slowing down of consumer battery demand, the company's EPS in 2021-2023 was 1.24 yuan / 2.24 yuan / 4.02 yuan, a year-on-year growth rate of 0%, 81%, 79%, and maintained the target price of 110.03 yuan, corresponding to 27 times PE in 2023.
Q4 revenue performance was eye-catching, slightly exceeding expectations. The company announced its performance in 2021, KuaiBao, with revenue of 2.22 billion yuan in 2021, an increase of 54.9%, a net profit of 120 million yuan, an increase of 0.7%, and a deduction of 140 million yuan, an increase of 21.3%. Of this total, Q4 earned 720 million yuan, up 44.8% and 50.2%, which was better than market expectations, mainly due to the high prosperity of the electric two-wheeler industry and the high income brought about by the efforts of the company's core customers.
The rise in raw material prices has disrupted performance in the short term. The company's Q4 returned to the mother net profit of 35 million yuan, slightly reduced by 3% compared with the same period last year. The non-return net profit of the company Q4 deducted 27 million yuan, down 15.6% from the same period last year. The company's performance is weaker than revenue growth, mainly due to the rise in material prices, exchange rate fluctuations and the increase in management expenses, sales expenses and R & D expenses.
Looking to the future, the company is expected to fully benefit from the industry lithium electrification. The trend of electrification and lithium electrification of the two-wheeler market at home and abroad will continue to deepen. Electric bicycles in Europe and the United States are in a rapid stage from 1 to N, and the compound growth rate of the industry in 3-5 years is more than 30%. The domestic electric bicycle lithium electrification and recharging market is booming, and the global motorcycle electrification and small energy storage market is just in its infancy. As a light lithium battery leader, the company will fully benefit from the high prosperity of various subdivision racing lines downstream. Business continues to maintain high growth.
Risk tips: rising prices of raw materials, intensified trade frictions, intensified competition in the industry.