In 2020, the company realized revenue of 3.38 billion yuan,-0.7% compared with the same period last year, and realized net profit of 247 million yuan, + 40.0% compared with the same period last year. Among them, 2020Q4 achieved revenue of 1.06 billion yuan in a single quarter, + 17.8% year-on-year, and a net profit of 98 million yuan, which was within the forecast range of KuaiBao's previous performance, which was in line with market expectations. The company has a solid leading position in the large and medium-sized bus air-conditioning industry, and is expected to benefit from the recovery of the industry in 2021; the customer quality and product profitability of the car thermal management business continue to improve, through the acquisition of Jingbin Ocean to break through Volkswagen, Honda and other joint venture customers. Taking into account the impact of chip shortage on the sales of the automotive industry, the company downgraded its 22-year EPS forecast to 0.40 EPS 0.48 yuan (the original forecast was 0.44 Universe 0.57 yuan), and increased the 2023 EPS forecast of 0.58 yuan, maintaining the "buy" rating.

The company's 2020Q4 performance is in line with expectations. The company achieved revenue of 3.38 billion yuan in 2020,-0.6% year-on-year, and net profit of 247 million yuan, + 40.0% year-on-year. Among them, 2020Q4 achieved revenue of 1.06 billion yuan in a single quarter, + 17.8% of the same period last year, and realized a net profit of 98 million yuan, compared with 1 million yuan in the same period last year, which was within the forecast range of KuaiBao's previous performance, in line with market expectations. Under the influence of the epidemic, the company still maintains a leading position in the domestic automobile thermal management industry, while seizing the opportunity of the rapid development of the truck and construction machinery industry to improve the quality of customers and orders. In 2020, the revenue of the company's large and medium-sized bus thermal management business was 1.16 billion yuan, down 23.1% from the same period last year, which was better than the sales growth rate of the large and medium-sized passenger industry (- 25.8%). The car thermal management business rose 14.9% against the trend and began to contribute performance, and the overall operation improved significantly.

Some of the financial indicators of Q4 declined due to the adjustment of accounting standards, and the actual operation of the company was stable. The company's gross profit margin in the fourth quarter of 2020 was 10.44%, year-on-year-16.84pcts and month-on-month-20.40pcts, mainly due to the adjustment of accounting standards, warehousing and logistics fees, as well as subsequent maintenance and protection fees corresponding to current sales in 2020 were included in operating costs. After reducing the above expenses, the company's actual gross profit margin is 25.59%, which is basically stable. The company's 2020Q4 sales rate is-6.05%, year-on-year-13.54pcts, month-on-month-16.88pcts, mainly due to changes in accounting standards; management fee is 4.82%, year-on-year-1.01pcts, month-on-month + 0.18; research and development rate 7.41%, year-on-year level, month-on-month ratio + 1.98pcts; financial rate 0.13%, year-on-year + 0.23pcts, month-on-month-0.15pcts.

The customer structure is optimized, and the management has hit bottom. Since 2019, the company has adhered to the business strategy of "simultaneous development of passengers and businessmen" and increased customer development for passenger vehicles and commercial vehicles. The company's commercial vehicle business, especially construction machinery air-conditioning products, accounts for an increasing proportion of sales. at present, the main customers are advanced construction machinery manufacturers such as Sany, Xugong, Futian and Shaanxi Automobile. In terms of passenger cars, the company mainly supplies condensers, air conditioners and other products, and gradually phase out low-end customers and expand high-quality independent and joint venture brand customers. At present, the company's main passenger car customers are Jianghuai, Changan, SAIC GM Wuling and SAIC passenger cars. In 2020, the company announced that it was designated for the air conditioning box project of NIO Inc. and BAIC off-road vehicles, and completed the acquisition of Jingbin Ocean, breaking through Volkswagen, Honda and other joint venture customers. The company's new customers and new products expand smoothly.

Continuous investment in R & D and rapid expansion of new business. Since 2014, the company's annual R & D expenditure is more than 150 million yuan; in terms of patents, the company is the drafting unit of industry standards for automotive air-conditioning products, and the vehicle air-conditioning R & D technology is ahead of its domestic counterparts. And the company has Shanghai Songzhi Experimental Center and Jianghuai Songzhi Experimental Center two nationally recognized qualified laboratories. The company invested 150 million yuan in 2018 to build an international advanced ring mold wind tunnel laboratory to speed up the cooperative development with a number of vehicle factories. The company is a leading enterprise in the field of large and medium-sized bus air-conditioning, air-conditioning products continue to iterate, and based on the company's existing products, enter the field of energy storage power station, continue to provide increment. In terms of cold chain business, after the acquisition of Lumikko, the company localized its technology and products, and the transportation of drugs, fruits and vegetables and other products increased significantly.

Risk factors: the prosperity of the automotive industry is declining; the progress of product research and development is not as expected; the expansion of new products and new customers is not as expected.

Investment suggestion: the company has a solid leading position in the large and medium-sized bus air-conditioning industry, and is expected to benefit from the recovery of the industry in 2021; the customer quality and product profitability of the car thermal management business continue to improve. Through the acquisition of Jingbin Ocean to break through Volkswagen, Honda and other joint venture customers. Considering the impact of the shortage of chips on the sales of the automobile industry, the company downgraded the company's 22-year EPS forecast to 0.40 EPS 0.48 yuan (the original forecast was 0.44 pound 0.57 yuan), and increased the 2023 EPS forecast by 0.58 yuan, maintaining the "buy" rating.