China Automotive Systems (CAAS) Tops Q1 EPS by 7c, Revenues Beat; Raises FY21 Revenues Guidance Above Consensus

May 12, 2021 6:03 AM EDT
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Price: $3.37 +1.51%

Revenue Growth %: +45.0%

Financial Fact:
Net income: 5.86M

Today's EPS Names:
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China Automotive Systems (NASDAQ: CAAS) reported Q1 EPS of $0.10, $0.07 better than the analyst estimate of $0.03. Revenue for the quarter came in at $130.3 million versus the consensus estimate of $116.78 million.

First Quarter 2021 Highlights

  • Net sales rose 77.0% to $130.3 million from $73.6 million in the first quarter of 2020
  • Gross profit increased 75.9% to $19.7 million from $11.2 million in the first quarter of 2020; gross margin was 15.1% compared with 15.2% in the first quarter of 2020
  • Income from operations increased 320.0% to $4.2 million from $1.0 million in the first quarter of 2020
  • Net income attributable to parent company's common shareholders was $3.2 million, or diluted income of per share of $0.10, compared to net loss attributable to parent company's common shareholders of $0.03 million, in the first quarter of 2020
  • Cash and cash equivalents, and pledged cash were $122.0 million as of March 31, 2021

Mr. Qizhou Wu, chief executive officer of CAAS, commented, "We are excited to report accelerated top line growth in the first quarter driven by increased demand in each of our key markets - Chinese OEM passenger vehicles, Chinese OEM commercial vehicles and exports to North and South America."

"According to statistics from the China Association of Automobile Manufacturers ("CAAM"), automobile sales in China rose by 75.6% year-over-year in the first quarter of 2021 as passenger vehicle sales grew 75.1% year-over-year and commercial vehicle sales increased by 77.3% year-over-year."

"Each of our operational units achieved sales growth and was profitable in the first quarter of 2021 as all our manufacturing lines were operating at a high utilization rate. Our sales to the Chinese commercial vehicle OEMs rose by approximately 169% year-over-year and sales of our electric power steering products ("EPS") by our Henglong KYB joint venture rose by 200% year-over-year in the first quarter of 2021. North American sales rose by 26.3% year-over-year in the first quarter of 2021, and our Brazil Henglong joint venture has already announced an expected 200% increase in unit sales in South America for the 2021 year."

"We have increased our investment in research and development by 28.6% as automobile technology continues to evolve. Our new EPS system integrates and communicates with the vehicles' main data architecture to provide key Advanced Driver Assistance Systems (ADAS) functions including lane keeping assist (LKA), automatic parking assist (APA), lane centering (LCK) and traffic jam assist (TJA). Other new products are under development as well as ongoing efforts to improve the performance and quality of current steering products. Our new products will continue to provide new growth opportunities and solidify our leadership role in the global steering market."

Mr. Jie Li, chief financial officer of CAAS, commented, "We continued to maintain our financial strength even as we increased investment and expenditures in the first quarter of 2021 to support our growth as we maintained our cash levels, accounts receivable and payable amounts, and our inventories."


China Automotive Systems sees FY2021 revenue of $485 million, versus the consensus of $467.89 million.

Management raises revenue guidance for the full year 2021 to $485 million from $470 million. This target is based on the Company's current views on operating and market conditions, which are subject to change.

For earnings history and earnings-related data on China Automotive Systems (CAAS) click here.

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