Summary of events: on April 26, the company released the first quarter report of 2022 that the company's 22Q1 realized operating income of 294 million yuan, an increase of 47.57% over the same period last year; net profit of 113 million yuan, an increase of 61.32% over the same period last year, deducting 99 million yuan of non-return net profit, an increase of 67.94% over the same period last year; and basic earnings per share of 1.13 yuan, an increase of 61.43% over the same period last year.
22Q1's profitability has risen further. 22Q1's gross profit margin rose sharply to 52.76% month-on-month, and the share of revenue from high-value products increased. In terms of expense rate, the sales expense rate and management expense rate of 22Q1 decreased significantly compared with the previous month. The sales expense rate of 22Q1 decreased by 1.47Pcts and 3.24Pcts to 3.95%, while the management expense rate decreased by 2.17Pcts and 2.18Pcts to 4.08%. The effect of cost control was remarkable, and the R & D expenditure rate of 22Q1 remained at a high level of 5%. Benefiting from the sharp decline in expense rates during the period, 22Q1's net interest rate increased significantly by 3.27Pcts and 13.9Pcts to 38.40%, respectively, compared with the previous month.
22Q1 inventory continues to maintain the growth trend. The company calculates the inventory with the cost method, and the inventory of 22Q1 Company reaches 479 million yuan, which is a further increase compared with the end of the 21st century. The amount of goods sent out is larger, and the adverse impact of the epidemic on logistics and production is less. The company mainly adopts the production mode of "fixed production by sales and appropriate amount of inventory". The production department will prepare an appropriate amount of inventory according to the product orders received by the sales department. 22Q1 has a large amount of inventory and is further improved compared with the end of the 21st year, releasing a positive signal for the company's follow-up growth.
New market + new products two-wheel drive, the company is expected to maintain steady growth in the future. The main results are as follows: 1) the intelligent column switch accelerates the expansion outside the province. During the 14th five-year Plan period, the proportion of distribution network investment is expected to rise to about 60%, and there is a large switch space on the intelligent pole of the distribution network. based on the sound basic market of Zhejiang Province, the company has accelerated the expansion of non-provincial markets. the company has more products put into operation in Jiangsu, Shaanxi, Fujian, Shanxi, Shandong, Henan and other provinces, and the proportion of regional revenue except East China has increased to nearly 40% in 2021. In the future, non-provincial business is expected to accelerate the contribution of performance increment. 2) the intelligent ring network cabinet is expected to open the company's second growth curve. The intelligent ring network cabinet is mainly used in the scene of underground cable, which has the characteristics of difficult maintenance and high running stability, so the corresponding demand space of the intelligent ring network cabinet is larger. The company's intelligent ring cabinet business is expected to be industrialized in 2022, with high technical homology with the company's intelligent post switch, and strong reusability of channel resources, etc., after the company's intelligent ring cabinet industrialization, the business is expected to maintain a faster expansion speed and contribute new performance increments to the company.
Investment advice: the company has plenty of on-hand orders, and the downstream demand is high. We expect the company's annual income in 2022-23-24 to be RMB 14.8 billion, with a revenue growth rate of 30.6%, 35.8% and 35.8%, respectively. The net profit at home is RMB 5.6, 7.6 and 1.04 billion, with a growth rate of 35.3%, 36.5% and 36.5%. Corresponding to the closing price on April 26, the 22-24 valuation of the company is divided into 17X, 12X and 9X. As the vanguard of the intelligent primary and secondary integration of the distribution network, the company will highly benefit from the intelligent transformation of the distribution network, the dual growth path of region + category expansion is clear, and maintain the "recommendation"
Rating.
Risk hints: the risk that the construction of power grid investment is less than expected; the risk of market development outside the province is less than expected; the risk of epidemic development exceeding expectations, and so on.
