Key points of investment
The company released its 2022 quarterly report: revenue of 742 million yuan, up 12.95% year on year; net profit of 312 million yuan, up 30.62% year on year; net profit after deduction of 297 million yuan, up 28.12% year on year; basic earnings per share of 0.13 yuan/share, up 24.11% year on year; and weighted average return on net assets of 4.05%, down 1.28pct year on year.
Net interest rate increased significantly, and the period expense ratio decreased year over year: in the first quarter of 2022, the company's overall gross profit margin was 57.03%; net profit margin was 42.02%; weighted average return on net assets was 4.05%; total period expenses of the company were 134 million yuan, down 5.97% year on year, accounting for 18.08% of the company's revenue, and revenue share decreased by 3.64pct year on year.
Net cash flow from operating activities decreased year-on-year: In the first quarter of 2022, the net cash flow from the company's operating activities was 46.118 million yuan, a year-on-year decrease of 116.88%
Accounts receivable increased slightly from the beginning of the year, and contract liabilities decreased significantly from the beginning of the year: as of the end of the first quarter of 2022, the company's receivables totaled 2,217 billion yuan, up 6.19% from the beginning of 2022, of which accounts receivable were 2,046 billion yuan, up 6.01% from the beginning of 2022; inventory was 1,631 billion yuan, a decrease of 1.55% from the beginning of 2022; and contract liabilities of 548 million yuan, a decrease of 17.22% from the beginning of 2022.
In the first quarter of 2022, the company's credit impairment recovered to 62.1415 million yuan, up 413.56% year on year; income tax expenses were 52.3957 million yuan, up 515.39% year on year.
We maintain our profit forecast. It is estimated that the company's net profit for 2022-2024 will be 1,497/19.28/2,369 billion yuan, and EPS will be 0.64/0.82/1.01 yuan/share, respectively, and the PE corresponding to the closing price of April 20 will be 26.4/20.5/16.7 times, maintaining the “prudent increase in holdings” rating.
Risk warning: Product delivery progress falls short of expectations, new product development falls short of expectations, and industry competition is intensifying.