Event
The company released its quarterly report for 2022 on the evening of April 26. The company realized revenue of 224 million yuan in the first quarter of 2022, an increase of 23.50% over the same period last year, realized net profit of 28 million yuan, down 4.01% from the same period last year, deducted 21 million yuan from non-parent net profit, down 21.70% from the same period last year, and realized EPS of 0.39 yuan, down 4.88% from the same period last year.
Comment
Q1 R & D investment increased, and the performance was in line with expectations. Q1 company R & D cost 15 million, R & D expense rate 6.64%, an increase of 1.57pcts over 21 years, which has a slight impact on the company's performance. Research and development expenses are mainly invested in the development and utilization of new soft magnetic products to speed up the process of new business development. At the same time, Anhui Longji New material Technology Co., Ltd., with an investment of 30 million yuan, has been registered. Q1 permanent magnet ferrite business profit is stable, at the end of February, "annual output of 8000 tons of high-performance permanent magnet ferrite wet pressure magnetic tile project" has reached production, the overall performance is in line with expectations.
The permanent magnet business has expanded steadily, with an annual production capacity of 60,000 tons in 24 years. The company's main products are high-performance wet-pressed magnetic tiles, which are ferrite permanent magnets and are the core components of downstream micro-special motors. At present, the company has a production capacity of 33,000 tons per year, and the company plans to add 10,000 tons per year from 22 years, and achieve 60,000 tons by the end of the 24th, mainly relying on the transformation of the old line and the commissioning of the new line. It is estimated that the output of permanent magnet ferrite in 22-24 is 36000 tons, 45000 tons and 54000 tons respectively. The company's wet-pressed magnetic tile gross profit margin is among the highest in the industry, maintaining around 35% and 40% in recent years.
Integrated layout of soft magnetic business, looking forward to the release of powder core inductors. The company's soft magnetic project officially started construction in 20 years, from powder preparation, magnetic core products and device products to the whole industry chain at the same time. At present, the annual production capacity of iron-silicon-aluminum and iron-silicon metal powder cores has been put into production; 12 million high-frequency magnetic devices (inductors) have been put into production in the first phase. In the second phase of construction, the total annual production capacity of inductors is 50 million, and high-performance soft magnetic ferrites are planned to be 6000 tons.
Profit Forecast & Investment suggestion
It is expected that the company's soft magnetic business will begin to concentrate after 23 years, and the company's 22-23 net profit will be reduced by 13% and 20%. It is estimated that the 22-24 net profit of the company will be 174 million yuan, 232 million yuan and 307 million yuan, respectively, and the corresponding EPS will be 1.44,1.93,2.55 yuan respectively, and the corresponding PE will be 16 times, 33 times and 25 times respectively. Maintain a "buy" rating.
Risk hint
Downstream demand fluctuation risk; new product development risk; risk of loss of technical personnel, etc.
