Core viewpoints
Event: the company released the 2021 annual report, with annual income of 410 million (- 11.1%), net profit of 30 million (- 66.5%), deduction of non-net profit of + 21 million (- 74.3%), Q4 income of 88 million (- 43.0%) in a single quarter, net profit of-13 million (- 139.2%) and deduction of non-net profit of-16 million (- 151.1%). In addition, the company released 22Q1 quarterly report, realizing income of 69 million (- 48.7%), net profit of-15 million (- 172.0%) and deduction of non-net profit of-15 million (- 180.0%).
The slight decline in revenue from the core business is mainly due to the decline in the demeanor of the heavy card view. From a product point of view, the revenue of intelligent enhanced driving system and advanced assisted driving system reached 240 million and 70 million respectively, with year-on-year growth rates of-5.7% and-0.1% respectively, both of which declined slightly, mainly due to the decline in front loading heavy truck bearing and rear loading slag car market, as well as the decline in heavy truck sales. According to the data of the first Commercial vehicle Network, a total of 1.391 million heavy trucks were sold in 2021, down 14.1% from the same period last year, and heavy trucks are the company's main product supporting models. therefore, the continued downturn of the commercial vehicle market represented by heavy trucks has had a great impact on the company's preloading business.
The performance pressure is due to the decrease in gross profit margin and the increase in expense rate during the period. The company's comprehensive gross profit margin of 41.8% (- 5.4pct) in 2021 is mainly due to the increase in the price of raw materials, the intensification of competition in the industry as a whole and the impact of the company's increased market development efforts. In addition, the expenditure rate during the period was 43.5%, an increase of 11.1pct over the same period last year, mainly due to increased investment in research and development. The rate of R & D expenditure during the reporting period was 28.1%, an increase of 9.8pct over the same period last year.
Enrich iterative products and consolidate and expand customers at the same time. On the product side, in addition to improving the functions of existing products, the company has in-depth layout in the field of intelligent network connection, controller products, extending to the direction of domain controllers, forming a diversified product layout. On the client side, the application models of the company's products extend from passenger cars and heavy trucks to the field of generalized commercial vehicles and passenger vehicles, expand various types of mainframe factory customers and constantly improve penetration and accumulate customer group advantages. With the development of the company's products and clients, revenue and profits are expected to improve.
Profit forecast and investment suggestion
After adjusting the gross profit margin and expense rate of income growth, we predict that the EPS of the company in 22-24 will be 0.33 soybean 1.08 yuan respectively (the original forecast EPS for 22-23 will be 1.86 shock 2.37 yuan). Taking into account the impact of the 22-year epidemic and the demand brought about by the arrival of the new standard for driving recorders was mainly released in 23 years, according to the comparable company's PE level in 23 years, the company was given 24 times PE in 23 years, corresponding to a target price of 19.68 yuan, maintaining a buy rating.
Risk hint
The risk of the policy landing is not as expected, the risk of the epidemic affecting the downstream demand, etc.