This report is read as follows:
The company's performance in 2021 is in line with expectations, revenue is growing rapidly, net profit remains stable, profitability is affected by rising raw material prices, and the continuous development of new energy and intelligent related products is expected to accelerate the company's growth.
Main points of investment:
Lower the target price to 20 yuan to maintain the overweight rating. Under the influence of the rise in raw material prices, the EPS forecast of the adjustment company in 2022-2024 is 0.600.13 / 0.800.08 / 1.12RMB. The comparable company gives the company 25 times PE in 2023, lowering the target price to 20RMB (originally 25.51RMB) and maintaining the overweight rating.
Income is growing rapidly, net profit remains stable and performance is in line with expectations. In 2021, the company achieved an operating income of 1.422 billion yuan, an increase of 18.32%; a net profit of 195 million yuan, an increase of 2.75%; of which Q4 operating income was 411 million yuan, a decrease of 3.10%, and a net profit of 41 million yuan, a decrease of 42.97%. In 2022, Q1's operating income was 344 million yuan, an increase of 8.68%, and a net profit of 33 million yuan, a decrease of 34.16%.
New business is gradually developing, and profitability is affected by raw materials and other factors. In 2021, the company's traditional powertrain achieved revenue of 606 million yuan, which remained stable; the intelligent cockpit management system achieved revenue of 144 million yuan, an increase of 40%; and sales revenue of new energy vehicle projects reached 59.49 million yuan, an increase of 297%. The rise in the price of raw materials such as copper, plastic and electronic components affects profitability, and the gross profit margin has been significantly affected.
The continuous development of new energy and intelligent related products is expected to accelerate the growth of the company. In 2021, the company acquired 18 projects including battery management system of Volkswagen, Bosch and Ningde era, electric drive system of joint electronics, power management system of Great Wall Motor and Sinotruk, and 22 projects such as intelligent access to Bosch steering system, mainland electronic stabilization system, intelligent cockpit system of Bosch and Zaifu, etc. New products have entered a period of rapid growth, which is expected to lead the company to achieve accelerated growth.
Risk hint: the risk of lower-than-expected mass sales of core customers and a substantial increase in costs such as raw materials