This company has Tesla and Apple to support the performance but "thunderstorm"

Author: Less words

New energy vehicles are becoming increasingly popular, and companies that supply precision components for new energy vehicle companies such as Tesla are also optimistic about the capital market.

However, after the company's 2021 performance forecast was announced, even the melon-eating masses were stunned.

What's going on here?

The highest performance pre-loss of 490 million to 690 million yuan This company actually "thunderstorm"

On the basis of a profit of 600 million yuan in 2020, this company is unanimously optimistic about institutions and investors, because he not only has the blessing of giants, but also a Tesla concept stock, but also an Apple supply chain company. However, to the surprise of many people, the 2021 performance forecast shows that the company "exploded".

This company is Changying Precision (300115. SZ）。

According to public information, today's Changying Precision has served the markets including mobile communication terminals, new energy vehicle components, robots and intelligent manufacturing, and is a large-scale manufacturing enterprise that develops, produces and sells intelligent terminal components, new energy vehicle components, intelligent equipment and system integration.

It can be said that Changying Precision has embarked on the development path of dual-drive consumer electronics precision components business and new energy vehicle precision components business.

But what no one expected was that Changying Precision Performance suddenly changed its face. According to Changying Precision's performance forecast, the company expects a net loss attributable to shareholders of listed companies of 490 million yuan to 690 million yuan in 2021, a profit of 600 million yuan in the same period of 2020, a net loss of 650 million yuan to 850 million yuan, and a profit of 479 million yuan in the same period of 2020.

Source: Changying Precision Announcement

For the reasons for the pre-loss of 2021 performance, Changying Precision said in the announcement:

First, the investment in the research and development of strategic products of major customers has further increased, the cost has increased, and the layout of new energy components and R&D investment have increased;

Second, the key products of major customers are in the period of mass production and climbing, and the yield rate is low;

Third, some production and manufacturing bases have been affected by the epidemic and the shortage of customer chips, and the capacity utilization rate has declined and production costs have risen; fourth, the prices of major raw materials such as copper and aluminum have risen sharply, which is difficult to digest in the short term; exchange rate changes and labor costs have a certain impact on gross profit margins;

Fifth, an impairment provision was made for the impairment of some inventories in 2021 due to the above reasons.

According to the financial data previously released by Changying Precision, in the first quarter, the first half of 2021 and the first three quarters of 2021, the revenue was 2.249 billion yuan, 4.522 billion yuan and 7.366 billion yuan, and the net profit was 138 million yuan, 236 million yuan and 157 million yuan, respectively.

It is worth noting that the revenue of Changying Precision in the third quarter reached 2.844 billion yuan, and the net loss in the third quarter was 79.3488 million yuan, down 143.33% year-on-year, and the cumulative net profit in the first three quarters fell compared with the first half of the year. In addition, the net profit of Changying Precision in the second quarter of the single quarter was 0.98 billion yuan. In this way, in the four quarters of 2021, the net profit of Changying Precision in a single quarter showed a downward trend.

Of course, the lack of core is one aspect of the decline in the performance of Changying Precision.

In the 2021 performance forecast, Changying Precision mentioned the "lack of core" of major customers.

As an electronics manufacturing enterprise, Changying Precision's early business was consumer electronics parts manufacturing business, and its main customers were also apple, millet, Huawei, Samsung and other well-known consumer electronics brand manufacturers. However, one of the problems plaguing the consumer electronics industry in 2021 is the lack of production capacity caused by the shortage of chip supply, which indirectly leads to the obstruction of the production of Changying Precision. It is reported that since the beginning of 2021, due to the shortage of customer chips, order delays or cancellations, the entire industrial order has shown a relatively chaotic state, and many electronic manufacturing foundries have also stopped production and insufficient capacity utilization.

Due to the deep binding of these large customers in the consumer electronics business, the performance of Changying Precision's related businesses was also less than expected.

In 2021, the prices of raw materials such as aluminum and copper in the upstream of the manufacturing industry will rise sharply, causing great pressure on the operating costs of related manufacturing enterprises, and Changying Precision is no exception. In addition, Changying Precision made an impairment provision for the impairment of some inventory in 2021 due to the above reasons. As of the third quarter of 2021, the inventory of Changying Precision increased by 1.562 billion yuan or 51.49% compared with the beginning of 2021, and as of the third quarter of 2021, the cumulative inventory of Changying Precision was about 4.6 billion yuan.

Secondly, Changying Precision expands new industries and continuously increases investment.

In this regard, in the performance forecast of Changying Precision, it was said that due to the increase in the business layout of new energy components, the investment in research and development increased, which directly led to the pressure on its short-term performance.

The pace of new business is a bit big

Changying Precision was the first to Android brand metal frame processing, but as the smart machine entered the stock era, the Android brand in the low-end model price war intensified, gradually shifting the cost pressure to the supply chain link, profitability declined, followed by the implementation of the "double transformation" strategy, the business is mainly focused on consumer electronics precision components business and new energy vehicle precision components business.

According to the official website information, in terms of consumer electronics, Changying Precision mainly supplies intelligent terminal components, including smart phone metal exterior parts, stamped hardware parts, 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.

Nowadays, Changying Precision has become the core supplier of Apple's Macbook chassis, and in new business, it is also actively cooperating with large customers for MR product research and development.

However, the biggest change in the process of "double adjustment" of Changying Precision is the entry into the new energy industry. Changying Precision's new energy vehicle components have been supplied to Tesla, Peugeot Citroen, Daimler Benz, SAIC, Geely Automobile and other customers.

In addition, in order to better serve new energy vehicle customers, in 2021, Changying Precision will also invest 2.5 billion yuan to build power battery structural parts production bases in Yibin, Sichuan, Changzhou, Jiangsu and Ningde, Fujian. It is understood that Ningde Changying and Changzhou Changying have been put into production in the first half of 2021.

It can be seen that the two main businesses of Changying Precision have huge market demand in the industries, which is why it is optimistic about many institutions. However, the transformation will always experience pains, and Changying Precision will also increase R&D investment while laying out production capacity, which will consume more resources.

On December 31, 2021, some investors asked on the interactive platform of the Shenzhen Stock Exchange why Changying Precision has a high turnover and low profit? Changying Precision said that the continuous adjustment of product structure and customer structure, the development of new products and the construction of new business capacity require greater investment, and since 2021, due to the shortage of chips, the sharp rise in raw material prices and other factors, the cost side of the pressure is greater.

Source: Shenzhen Stock Exchange Interactive

Changying Precision is also solving the problem of tight funds. On December 17, 2021, Changying Precision issued an announcement that the company's board of directors agreed to use no more than 500 million yuan of idle raised funds to temporarily supplement working capital. It is reported that in 2020, Changying Precision will raise 1.900 billion yuan for the Shanghai Lingang New Energy Vehicle Components (Phase I) project and the 5G mid-end module project.

On the one hand, the pressure of enterprise working capital, on the other hand, the investment of enterprise transformation, under the superposition of two factors, can the big stride of Changying Precision still go steadily?

(This article is for reference only and does not constitute investment advice, and you do so at your own risk)