21st Century Business Herald reporter Yang Ping reported in Shenzhen
An announcement on the monthly operating conditions has attracted the attention of Joyson Electronics.
In the early trading of March 11, Joyson Electronics’ stock price changed from the previous losing streak to a red one, with an intraday increase of more than 5%.
On the evening of the previous day, Joyson Electronics disclosed an “Announcement on the Operation from January to February 2022”. During the period, the company is expected to achieve an operating income of about 7.4 billion yuan. Since 2022, the company’s automotive electronics and automotive safety business. It has successively obtained orders from world-renowned customers, and the current cumulative order amount (full life cycle) in hand exceeds 295 billion yuan.
As soon as the news came out, it immediately aroused widespread attention in the market.
But just before Joyson Electronics’ announcement of a pre-loss in 2021 was still lingering in investors’ minds. Why did Joyson Electronics “reverse performance” in the short term, and will the “tragedy” of pre-loss in 2021 repeat itself?
With this question in mind, the 21st Century Business Herald reporter called Joyson Electronics Securities Department. The operator told reporters,At present, the company’s over 259 billion orders in hand are all calculated based on actual contracts. “The average period of (orders) is about 5 years.” Considering the risks of supply chain shocks and rising raw materials, the company is negotiating “price increase policies” with customers, but “risks do exist.”
Where did the 295 billion orders in hand come from?
According to public information, Joyson Electronics is a global auto parts supplier, mainly engaged in the R&D and manufacturing of intelligent driving systems, automotive safety systems, new energy vehicle power management systems, and high-end automotive functional parts assemblies.
In November 2020, after Xiangshan Co., Ltd. acquired 51% of the shares of Joyson Group, a subsidiary of Joyson Electronics, for 2.04 billion yuan, Joyson Electronics’ main business has shifted from the original three major sectors of automotive functional parts, automotive safety and automotive electronics to There are two major areas of automotive safety and automotive electronics.
Since 2011, the company has successively acquired German PREH, an automotive electronics company, German robotics company IMA, German QUIN, global supplier of automotive safety systems, American KSS, and German TS in the field of intelligent car networking. The field of automotive intelligence and new energy has since become an important field for Joyson Electronics.
According to the latest announcement of Joyson Electronics, the company’s automotive electronics business has entered Porsche, Volkswagen, BMW, Mercedes-Benz, Ford, GM, Geely, GAC and other world-renowned brands. Its self-developed new-generation intelligent cockpit Human-Machine Interaction (HMI) product has won a number of project orders from a leading domestic new energy vehicle manufacturer; and in the automotive safety business, Joyson Electronics related products have quickly entered SAIC and BYD. , Weilai, Ideal and Xiaopeng and other well-known customer supply chain systems.
As the prosperity of the new energy vehicle industry continues to improve, Joyson Electronics has also ushered in a big business explosion.
According to Joyson Electronics, in the automotive electronics business segment, from January to February 2022, the company’s automotive electronics business segment is expected to achieve operating income of about 2.2 billion yuan, an increase of about 10% year-on-year, mainly due to the new energy battery management system business. growth of. At present, the cumulative amount of orders in hand (full life cycle) for the automotive electronics business exceeds 75 billion yuan.
In the automotive safety business sector, from January to February 2022, Joyson Electronics is expected to achieve operating income of about 5.2 billion yuan. Since 2022, the value of new orders for automotive safety business in China is about 4.2 billion yuan, and the value of new orders in Europe is about 4.5 billion yuan. Profitable in March. At present, the total amount of orders (full life cycle) in the global auto safety business is about 220 billion yuan.
It is worth mentioning that in 2021, Joyson Electronics is expected to achieve an operating income of about 45.6 billion yuan. This also means that in just two months in 2022, the operating income of Joyson Electronics’ only two major businesses, automotive safety and automotive electronics, has reached 1.60% of last year.
Faced with how long the “full life cycle” of the aforementioned order is, a person from Joyson Electronics Securities Department responded to the 21st Century Business Herald reporter: “At present, the orders in hand mainly involve downstream complete vehicle customers, especially the new models of new car-making customers. (The orders mainly cover) the whole cycle of these new models from the start of mass production, to the update iteration, and then to the shutdown of production. The period is about 5 years.”
According to a person from the securities department, these orders are all implemented at the contract level,”According to industry management, customers will definitely give us orders, which is also in line with business logic. Some future models of customers will be bound to our products, and the price and (supply) quantity will be agreed upon according to the contract.”
Performance may still be under pressure
It is worth mentioning that, before Joyson Electronics “actively announces the good news”, the company just handed over a not very “decent” transcript.
Joyson Electronics’ 2021 performance forecast shows that the company is expected to achieve a net profit of -3.18 billion to -3.78 billion attributable to the parent. Among them, the impairment of the goodwill of the relevant asset group of the automobile safety division will cause the company’s net profit in 2021 to drop by 2 billion yuan to 2.5 billion yuan.
After excluding the impact of goodwill impairment, the company expects that the main reasons for the loss in 2021 will be the sharp drop in operating income compared to before the epidemic, the sharp rise in operating costs per unit of income caused by the rise in upstream raw material prices and transportation costs, and the impact of the epidemic. Factory shutdowns and production losses.
At present, whether the large number of orders in hand can really make Joyson Electronics sweep away the haze of “loss” is still a big question mark in the minds of investors.
Earlier, Joyson Electronics said in response to the exchange’s inquiry letter, “The company’s gross profit decreased by about 950 million yuan compared with 2020. Compared with 2019, the operating income in 2021 will decrease by about 16.1 billion yuan, a decrease of about 26 million yuan. %, combined with the impact of rising operating costs per unit revenue, gross profit decreased by more than 4 billion yuan, a drop of more than 40%. Although the company’s four expenses, such as sales expenses and management expenses, have increased with the integration of the company’s auto safety business and the reduction in operating income. The total decline was about 1.7 billion yuan, but it still could not offset the impact of the decline in gross profit on net profit.”
Since entering 2022, problems such as chip shortages, supply chain disturbances, rising raw material prices and transportation costs are still severe. A person from Joyson Electronics Securities Department told reporters frankly, “Risk does exist”。
As for the issue of rising raw materials, a source from the securities department revealed: “As a supplier in the middle of the industry chain, it is impossible for us to fully bear the cost of the upstream. Last year, the upstream cost did rise, and the downstream customers did not agree, (resulting in pressure on the operating performance), but starting from 2022, we have already I see that some customers agree to our relevant price increase policy。”
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