Core point of view
The first quarter results were in line with expectations. In the first quarter of 2021, the operating income was 133 million yuan, down 20.7% from the same period last year, and the net profit was 23 million yuan, down 21.0% from the same period last year. The net profit after deducting non-return was 21 million yuan, down 27.3% from the same period last year. Due to the shortage of chips in the automobile industry in the first quarter, the company's operating income and profits declined compared with the same period last year.
Gross profit margin fell and cash flow narrowed. The gross profit margin in the first quarter was 31.8%, down 2.7 percentage points from the same period last year and 1.9 percentage points higher than the previous quarter. During the period, the expense rate increased by 4.1% compared with the same period last year, of which the sales expense rate increased by 0.4%, the management expense rate increased by 2.2%, and the R & D expense rate increased by 1.9%. The net cash flow of operating activities was-19 million yuan, down 132.0% from the same period last year. The decline in operating income resulted in less cash received and longer time for customers to pay in advance.
The development layout of many new areas will be strengthened, and the future harvest can be expected. The company has developed multi-specification automotive motor stator and rotor and applied to United Automotive Electronics, Nissan, Skyline and other enterprises; IGBT has successfully developed laser etching, hot pressing connection, low inductance packaging and other equipment for heat dissipation substrate. In the field of new energy vehicles, the company has mastered the automatic and flexible assembly of drive motor controllers and charging inverters to effectively improve the efficiency of equipment development; the business of automatic handling of robots and stamping of battery cooling tubes in the production of battery packs have achieved a good start and supply. The company has a wide range of product technology layout in the field of automotive electronics and new energy, and is expected to receive more orders in the future to help improve its performance.
Give full play to the coordination with Shanghai Zhongyuan business to enhance Zhongyuan's profitability. In 2018, the company completed the acquisition of Shanghai Zhongyuan and cut into the field of engine and spare parts services, and carried out large-scale automation upgrades to Shanghai Zhongyuan to enhance production capacity and profitability. At present, Shanghai Zhongyuan has set up a professional automotive engine pipeline R & D team, and the relevant systems have passed Volkswagen MEB experimental certification and entered the stage of preparation for mass production. Business collaboration will continue to improve the profitability of Shanghai Zhongyuan.
Financial forecast and investment advice: the EPS of the forecast company from 2021 to 2023 is 0.70,0.95,1.17 yuan respectively. The comparable company is a company related to machinery and equipment, new energy vehicle industry chain and auto parts. The average PE valuation of the comparable company in 21 years is 53 times, giving the company 53 times valuation in 21 years, and the corresponding target price is 37.1 yuan. Maintain the buy rating.
Risk hint: the matching quantity of Zhongyuan automobile parts is lower than expected, the matching quantity of automobile automation equipment is lower than expected, and the matching quantity of heat pump air conditioning pipeline is lower than expected.