In 2020, the company achieved an operating income of 16.892 billion yuan,-1.2% compared with the same period last year, and a net profit of 849 million yuan,-13.4% compared with the same period last year. Of this total, the revenue in the fourth quarter was 5.488 billion yuan, + 2.0% compared with the same period last year, and the net profit returned to the mother was 241 million yuan,-22.5% compared with the same period last year. The company's 2021Q1 realized operating income of 4.335 billion yuan, + 58.2% compared with the same period last year, and realized net profit of 239 million yuan, + 196.6% compared with the same period last year, in line with market expectations. The company is the world's leading supplier of automotive interior and interior decoration and metal parts, with high-quality customers and deepening global penetration; the restructuring of the European business is progressing steadily, overseas loss-making assets are expected to be divested, and the company is expected to usher in valuation restructuring.
We maintain the company's 2021 EPS 22 forecast of 1.79 EPS 2.14 yuan, add the 2023 EPS forecast of 2.48 yuan, and give the company 15xPE in 2021 with a target price of 26.85 yuan, maintaining a "buy" rating.
The company's 20Q4 and 21Q1 results are in line with market expectations. In 2020, the company achieved an operating income of 16.892 billion yuan,-1.2% compared with the same period last year, and a net profit of 849 million yuan,-13.4% compared with the same period last year. Of this total, the revenue in the fourth quarter was 5.488 billion yuan, + 2.0% compared with the same period last year, and the net profit returned to the mother was 241 million yuan,-22.5% compared with the same period last year.
The company's 2021Q1 realized operating income of 4.335 billion yuan, + 58.2% compared with the same period last year, and realized net profit of 239 million yuan, + 196.6% compared with the same period last year. The revenue and performance of the company's 20Q4 and 21Q1 are within the range of performance forecast, in line with market expectations. We believe that the company has a clear plan for the future, customer penetration continues to deepen, overseas loss asset restructuring continues to advance, the company will look forward to stable growth in the future.
The overall operation of the company is stable. In the fourth quarter of 2020, the company achieved a gross profit margin of 18.1%, year-on-year-0.1pct, month-on-month ratio-2.6pcts; realization expense rate 7.8%, year-on-year-2.6pcts, month-on-month ratio-3.9pcts, of which sales expense rate was-0.4%, year-on-year-2.8pcts, month-on-month ratio-3.4pcts, mainly due to the adjustment of transportation charges that originally belonged to sales expenses into the main business cost according to the new revenue criteria. Management fee 5.4%, year-on-year + 1.4pcts, month-on-month ratio-0.1pct; R & D expense rate 2.6%, year-on-year-1.4pcts, month-on-month ratio-0.4pct; financial expense rate 0.2%, year-on-year + 0.3pct, unchanged. In the first quarter of 2021, the company achieved a gross profit margin of 18.6%, year-on-year + 0.4 pct, month-on-month + 0.5 pct; realization expense rate 10.3%, year-on-year-5.4pcts, month-on-month + 2.5pcts, in which sales expense rate 2.8%, year-on-year-0.6pct, month-on-month + 3.2pcts; management expense rate 4.3%, year-on-year-2.7pcts, month-on-month ratio-1.1pcts; R & D expense rate 2.9%, year-on-year-1.5pcts, month-on-month + 0.3pct Financial expense rate 0.3%, year-on-year-0.6pct, month-on-month + 0.1pct. Under the influence of the epidemic, the management level of the company remains stable, which shows the resilience of the company.
European business restructuring stop loss, will increase confidence in development. In 2020, the company issued an announcement to determine the European business restructuring plan, reached a layoff compensation agreement with the German local trade union, and planned to close the main factory of Huaxiang in Germany. The continuous loss of the German factory is a drag on the company's overseas performance. This time, the promotion of the "European restructuring Plan" and the shift of manufacturing focus to low-cost areas to improve the efficiency of operation and management is expected to fundamentally solve the drag of losses in the European region. At the same time, in February 2021, the company issued a fixed increase announcement, raising about 2.3 billion yuan from the actual controller, demonstrating the confidence of major shareholders in the development of the company. The company's thermoforming structure business is developing rapidly, and welding with cold stamping parts to become assembly re-matching customers, the added value of the products has been greatly increased, and the profitability has been significantly enhanced. The company's interior accessories business takes a two-pronged approach both at home and abroad: in terms of domestic business, the joint venture company Sheng Weidehe Huaxiang currently supplies rearview mirror products of Model 3 models made in Tesla Shanghai Super Factory. In terms of overseas business, Northern Engraving, a subsidiary of Lawrence Interior Decoration, cooperates with North American Tesla to support Model X, Model S aluminum trim and other products. In the future, the company is expected to get more new orders for interior decoration and strip products on domestic Model Y models.
Risk factors: global car sales are not as expected; overseas business restructuring is not as expected; the progress of additional issuance projects is not as expected; Tesla's supporting expansion is not as expected.
Investment suggestion: the company is a global high-quality automotive interior and interior decoration and metal parts supplier, supporting Tesla, Volkswagen, Mercedes-Benz, BMW and other high-quality customers; new business thermoforming metal parts production lines have reached production, began to contribute performance.
After the major shareholders increase their shares in the future, it will help to optimize the corporate governance structure; the company's European business restructuring is progressing steadily, overseas loss-making assets are expected to be divested, and the company is expected to usher in valuation restructuring. We maintain the company's 2021 / 22 EPS forecast of 1.79 EPS 2.14 yuan, increase the 2023 EPS forecast of 2.48 yuan, give the company 15xPE in 2021, the target price is 26.85 yuan, and maintain the "buy" rating.
