Tesla, Apple blessing also does not work, "missing core" of long profit precision performance thunderstorm, the highest pre-loss of nearly 700 million

Reporter | Zhang Yi

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The new energy automobile industry broke out, sitting on Tesla, Ningde era (300750. SZ), Apple and other important customers of Changying Precision (300115. SZ) performance has thundered.

Changying Precision's performance forecast on the evening of January 23 shows that the company expects a loss of 490 million yuan to 690 million yuan in 2021, compared with a profit of more than 600 million yuan in the same period last year; and a net profit after deducting non-profit is -650 million yuan to -850 million yuan. This is the first annual loss since changying precision was listed for 11 years, and the amount of loss is relatively large compared to its own body volume.

The reason why it is surprising is because of the double day of ice and fire in the performance of Changying Precision. In the first three quarters of last year, the company was still profitable, and the net profit attributable to the shareholders of the listed company was 157 million yuan. This means that the company lost 647 million yuan to a loss of 847 million yuan in the fourth quarter. Losses have already begun in the third quarter, with a single quarter loss of 79 million yuan in the third quarter.

Changying Precision 2021 annual report performance forecast

For the reasons for the performance loss, Changying Precision put forward five explanations, including the increase in research and development expenses, the impact of missing cores, the price increase of raw materials, and the impairment of inventory.

According to the announcement, the company's main customers' strategic product research and development investment has further increased, the cost has increased, the layout of new energy components and research and development investment have increased; the key products of major customers are in the period of mass production and climbing, and the yield rate is low; some production and manufacturing bases are affected by the epidemic and the shortage of customer chips, the capacity utilization rate has declined, and the production cost has risen; the main raw materials such as copper and aluminum have risen sharply, which is difficult to digest in the short term.

Some of the inventory at the end of the period was impaired due to the above reasons, and an impairment provision was made. However, Changying Precision did not disclose the specific inventory impairment amount.

Changying Precision is a consumer electronics enterprise, in recent years, the company has gradually developed from precision manufacturing to intelligent manufacturing, and its business has extended to mobile communication terminals, new energy vehicle components, robots and intelligent manufacturing markets.

At present, Changying Precision has two major business segments, namely consumer electronics precision components business and new energy vehicle precision components business.

In terms of consumer electronics, Changying Precision mainly supplies intelligent terminal components, including smart phone metal exterior parts, stamped hardware, notebook computers and new hardware structural parts, ultra-precision linkers, etc.; new energy vehicle components include hydrogen fuel cell metal bipolar plates, high-voltage buses, power battery structural parts, charging guns, etc.

In these two major businesses, Changying Precision customers have no shortage of industry giants.

In the field of consumer electronics, Changying Precision and major customers Apple, Huawei, Xiaomi and other head mobile phone brand suppliers.

In terms of new energy vehicle business, Changying Precision is an important supplier of Tesla's components, and the leading power battery company Ningde Times is also an important customer.

In 2017, Changying Precision cooperated with Tesla for the first time, and gradually became a supplier of Tesla's new energy vehicle components, occupying a core supply share in some high-precision products. In addition to Tesla, changying new energy vehicles also have many important customers, including PSA, Daimler Benz, SHANGHAI Motor, Geely Automobile and so on.

Whether it is new energy vehicles, or robots, the industry in which Changying Precision is located is an upward industry, and it is also in line with the policy direction, at the same time, the company also has heavyweight customers, why will Changying Precision have a performance thunderstorm in a single quarter?

A big reason may be that the new business layout has taken too big a step.

In order to be closely bound with Tesla and catheter era, Changying Precision put forward the idea of "nearby matching" for key customers. Around this idea, the company has built new production bases in many places.

In 2020, Changying Precision raised 1.9 billion yuan in private issuance, part of which was used to build a new energy vehicle component base in Shanghai Lingang.

In 2021, Changying Precision will invest a total of 2.5 billion yuan to build power battery structural parts production bases in Yibin, Sichuan, Changzhou, Jiangsu and Ningde, Fujian, to support customers such as Ningde Times.

The company's latest reply to investors said that Ningde Changying and Changzhou Changying have been put into production in the first half of 2021, and Yibin Changying is expected to be put into production.

Changying Precision also said that the decline in profits of the company's new energy business was caused by the rise in raw materials and the company's large-scale expansion of production. "The increase in the company's R&D expenses was mainly caused by the increase in R&D labor and material costs for new projects of international customers; the management expenses were mainly caused by the increase in the management team of the new energy business and the adjustment of the staff structure."

While the focus is on the field of new energy, the revenue proportion of Changying Precision New Energy Vehicle Business is not high. In the first half of 2021, the revenue of this business was only 437 million yuan, accounting for nearly 10% of the revenue.

At the same time, electronic connectors and smart electronic products account for nearly half of the revenue, and consumer electronic precision structural parts and modules account for nearly 40%. Therefore, the "lack of core" may be the more important reason for Changying's precision injury.

Since 2022, the stock price of Changying Precision has continued to decline, with a cumulative decline of 18.80%, and the latest closing price is 16.11 yuan / share.

Large customers can not bring performance protection for Changying Precision, and the specific loss is to be disclosed in the annual report.