Events:

The company officially disclosed its annual report of 2021 and quarterly report of 2022 on April 25, 2022. In 2021, the company achieved a total revenue of 10.017 billion yuan, an increase of 28.82% over the same period last year, and a net profit of 250 million yuan, an increase of 142.01% over the same period last year, with a basic EPS of 0.11 yuan per share. In the first quarter of 2022, the company achieved revenue of 2.683 billion yuan, an increase of 21.54% over the same period last year, a net profit of 147 million yuan, an increase of 12.54% over the same period last year, and a basic EPS of 0.06 yuan per share. The company's performance is in line with expectations.

Comments:

Sales of new energy vehicles have increased significantly.

Benefiting from the rapid development of the new energy vehicle industry, the company's new energy vehicle powertrain system achieved an annual business income of 1.357 billion yuan, a substantial increase of 78.17% over the same period last year, including a substantial increase in sales of electric drive assembly products for pure electric passenger vehicles.

The product layout of BHS Division is very effective.

In the face of the overall weak terminal demand in the air conditioning market, the BHM Division, which is mainly composed of building air conditioners and household electrical appliances, has quickly adjusted the product layout and achieved good results in high efficiency intelligent motors, semi-closed compressor motors, fresh air air conditioning fans and other products, with sales reaching a record high: BHM Division achieved revenue of 5.5676463 billion yuan in 2021, an increase of 29.20% over the same period last year.

Prospective layout of hydrogen energy industry

The state's support for the development of hydrogen energy industry is getting stronger and stronger, and has issued a large number of related industrial policies. The company is looking ahead to the hydrogen energy industry. at present, it has completed the sample development, performance, reliability and prototype verification of 120KW fuel cell modules, and is undergoing strong inspection and certification by third-party agencies. In the catalogue of "the new energy automobile with three recommended models carrying the company's hydrogen fuel cell application", the market explorer has completed the technical and business docking of the core components with five head hydrogen fuel cell module companies.

Profit forecast and investment advice

Considering that the impact of the price increase of raw materials in the upper reaches of this year has not been eliminated, we estimate that the operating income of the company from 2022 to 2023 is 122.61 / 14.78 billion yuan, and the net profit is 3.66 / 487 million yuan (the previous value is 5.55 yuan and 667 million yuan, respectively). At the same time, the profit forecast for 2024 is 18.225 billion yuan, the net profit is 658 million yuan, and the corresponding EPS is 0.151mm 0.210.28 yuan per share. The corresponding PE is 30.4x/22.8x/16.9x. Maintain a "buy" rating.

Risk hint

1) the risk of rising prices of upstream raw materials; 2) the risk of intensified competition in the industry; 3) the risk of impairment of goodwill.