High income growth in 2021, 21Q4 performance under pressure
In 2021, the company achieved an income of 216.1 billion yuan, + 38.0% compared with the same period last year; the net profit returned to the mother was 3.05 billion yuan,-28.1% from the same period last year, and 1.25 billion yuan after deducting the non-return net profit from the same period last year. Among them, 21Q4 realized income of 70.95 billion yuan, + 37.6% year-on-year; net profit of 602 million yuan, 26.6% year-on-year,-52.6% month-on-month, and 368 million yuan of non-return net profit,-20.1% year-on-year and-28.9% month-on-month.
High growth in income and improvement in expense rate in all business sectors
In 2021, the revenue of automobiles and related products was 112.49 billion yuan, which was + 33.9% compared with the same period last year. The increase in automobile sales led to an increase in revenue. In 2021, the company sold 740100 cars (monthly sales KuaiBao caliber, the same below), + 73.3% compared with the same period last year. With the launch and delivery of the 21Q1 super hybrid DM-i model, the company's annual sales increased quarter by quarter. In 2021, the revenue from mobile phone parts and assembly business was 86.45 billion yuan, which was + 44.0% compared with the same period last year. The contribution of revenue from major customers in North America further increased. The income from rechargeable batteries and photovoltaic is 16.47 billion yuan, which is + 36.3% compared with the same period last year. The global demand for consumer electronic batteries has increased and the scale of photovoltaic applications has expanded.
In 2021, the company's gross profit margin was 13.0%, year-on-year-6.4pct, of which cars and related products gross profit margin 17.4%, year-on-year-7.8pct, mainly due to the high base contribution of medical protection gross profit in 2020, the rise in raw material costs, and so on. Mobile phone components and assembly and other businesses gross profit margin of 7.6%, year-on-year-3.6pct, mainly due to the increase in the proportion of revenue from the assembly business with lower gross profit margin. Rechargeable battery and photovoltaic gross profit margin of 11.9%, year-on-year-8.2pct. 21Q4's gross profit margin is 13.1%, which is basically flat compared with the previous month. The expense rate will be improved in 2021, the R & D expenditure rate is year-on-year-1.1pct, and the financial expense rate is year-on-year-1.6pct.
21Q4 BYD Electronic, the impairment and price increase dragged down the performance, but the profit of the automobile business was good. 21Q4's net profit was 602 million yuan, compared with-52.6%, of which BYD Electronic contributed 101 million yuan, compared with-70.2%, and the rest of the sector (cars and batteries, etc.) contributed 501 million yuan, compared with-46.2%.
21Q4 company estimates an impairment of 900 million yuan (we judge that it may mainly come from the photovoltaic business). If added back, the net profit of automobiles and batteries will be 1.401 billion yuan, compared with + 39.3%. Taking into account the price increase of lithium carbonate and the high non-profit of Q3, the automobile business Q4 shows strong profitability under the scale effect. 21Q4 sells 287400 vehicles, a month-on-month ratio of + 39.5%, with strong economies of scale. At the same time, low-profit fuel vehicles were further cleared, the structure of DMi was optimized, and the proportion of Tang and Song dynasties was improved.
Cash flow improvement, sound operation for the better
The company's cash increased by 36 billion yuan in 2021 (2.1 billion yuan in vs. 2020), mainly due to the increase of operating cash flow and equity financing. At the end of 2021, the cash balance was nearly 50 billion yuan, and abundant cash flow improved the quality of operation. In 2021, the company's asset-liability ratio is 64.8%, year-on-year-3.2pct, and annual financial expense rate is 0.8%, year-on-year-1.6pct.
Investment advice: cost pressure gradually peaked, vehicle volume and price increase, is expected to usher in the performance inflection point the automotive business has become the core contribution to profits, 21Q4 car profits exceed expectations to prove that economies of scale can bring strong profit resilience. 22Q1 has raised prices twice, and demand is still strong and orders are abundant. Sales are expected to rise quarter by quarter with production capacity climbing in 2022, and sales are expected to double for the whole year. With the increase in product prices, the growth of scale and the peak of raw material cost pressure, we think the company is expected to usher in a performance inflection point. Considering that the price of raw materials such as lithium carbonate rose more than expected, we downgraded the company's net profit in 2022 and 2023 to 5.5 billion yuan and 10.5 billion yuan, maintaining the "buy" rating.
Risk tips: rising prices of upstream raw materials, sales falling short of expectations, etc.