Core viewpoints
The performance was lower than expected. In the first quarter of 2022, the operating income was 98 million yuan, down 26.9% from the same period last year; the net profit was 300000 yuan, down 98.7% from the same period last year. The decline in net profit was due to the decline in sales caused by the epidemic and lack of core, which superimposed the impact of rising raw materials and freight.
Gross margin is under short-term pressure and cash flow is improving. The gross profit margin in the first quarter was 15.8%, down 16.0 percentage points from the same period last year. It is expected that the decline in sales will lead to an increase in fixed costs, raw materials and freight. During the first quarter, the expense rate was 19.1%, an increase of 3.2% over the same period last year, of which the sales expense rate was 1.7%, an increase of 0.5% over the same period last year, the R & D expense rate was 9.4%, an increase of 1.3% over the same period last year, and the management expense rate was 9.2%, an increase of 1.4% over the same period last year. The net operating cash flow in the first quarter was-12 million yuan, an increase of 38.1% over the same period last year, which is expected to be due to the acceleration of sales payments and the increase in cash received and the decrease in taxes paid.
New energy automobile electronics new products are widely distributed, laying a solid foundation for future performance growth. The company has worked hard in the field of automotive electronic equipment related to new energy vehicles, continuously increasing R & D investment to achieve revenue growth from technological innovation. Cooperative customers include United Automotive Electronics, Bosch, Huayu Magna, SAIC Volkswagen, Shanghai Volkswagen, FAW Volkswagen and so on. The new energy vehicle motor stator and rotor equipment developed by the company has been equipped with customers such as Automotive Electronics, Nissan, NIO Inc., Huayu Magna, etc.; vehicle controllers and charging inverter equipment have developed high-quality customers such as Eaton, Jinmai Electronics and IRC Power; the testing and stamping equipment of new energy battery and power management have been supplied; the assembly lines of ESP, IPB and other products are supplied worldwide, successfully realizing import substitution. Carbon dioxide high pressure pipeline system has passed Volkswagen MEB experimental certification and entered the pre-batch production and supply stage. At present, it is increasing investment to promote the popularization of R744 heat pump products in the field of new energy vehicles. In addition, the company is also actively layout self-driving, car seats, automobile energy recovery system and many other fields. As a leading automotive electronic equipment company in China, the company continues to expand its production capacity. It is expected that with the landing of related technologies and products. It is expected to increase domestic delivery volume and achieve domestic substitution, and many new products will consolidate the foundation for future performance growth.
Profit forecast and investment suggestion
It is predicted that the EPS of the company from 2022 to 2024 is 0.40,0.53,0.67 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 22 years is 41 times, giving the company 41 times valuation in 22 years, and the corresponding target price is 16.4 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.