The 21-year results are in line with our expectations. Investment income and non-operating income are a drag on 1Q22's 21-year and 1Q22 results: 21-year revenue is 1.285 billion yuan, year-on-year + 27.78%, net profit 483 million yuan, year-on-year + 43.59% access 4Q21 revenue 592 million yuan, year-on-year + 23.74%, home net profit 257 million yuan, year-on-year + 46.91% 1Q22 realized operating income of 193 million yuan, year-on-year + 1.23%, and homed net profit of 37 million yuan, year-on-year-36.20%. Overall, 21-year performance was in line with our expectations, and investment income and non-operating income were a drag on 1Q22 performance.
Trend of development
The 21-year revenue is + 27.78% compared with the same period last year, and the new product iteration + scene development + regional expansion forms a joint force. In the past 21 years, while continuing to carry out iteration and optimization and upgrading of mass production products, the company has launched new products of intelligent operation robot (antelope D200) and high-spray intelligent fire-fighting robot, contributing new growth momentum. Taking the intelligent operation robot as an example, we expect the company to harvest a total of nearly 400 million yuan of orders in Jiangsu and Zhejiang in 21 years.
In 21 years, the company's power / non-power revenue was + 26.31% plus 309.62% to 11.46 billion yuan respectively, actively expanding into off-grid areas such as rail transit and power generation, and implementing the strategic layout of the platform. While consolidating the regional advantages of Jiangsu, Zhejiang and Shanghai, the company continues to expand the southern power grid region, and breakthroughs have been made in Sichuan / Chongqing / Gansu / Yunnan and other regions. In 21 years, the revenue of South China / Southwest / Northwest region was + 55%, + 55%, 450%, 120% respectively, compared with the same period last year.
The profit level of 21 years remains high, and the orders on hand are relatively abundant. The company's profit level remained high in 21 years, with a comprehensive gross profit margin of 59.92%, year-on-year-0.65 ppt, period expense rate of 28.91%, year-on-year + 0.28 ppt, and net interest rate of 37.60%, year-on-year + 414ppt. In the past 21 years, the company has continued to deepen market expansion, with new orders of 1.002 billion yuan and outstanding orders of 393 million yuan by the end of 21, with relatively sufficient orders.
1Q22 investment income and non-operating income periodically drag on the level of net interest rate. 1Q22's gross profit margin is 53.75%, year-on-year-1.22ppt; period expense rate is 38.37%, year-on-year + 0.11ppt; net profit rate is 18.99%, year-on-year-11.14ppt. The main reasons are: 1) the operating loss of the subsidiary (GDHI), the investment income of 1Q22 is-3.48 million yuan, which is 11.43 million yuan less than 1Q21, affecting the net profit rate of nearly 6ppt 2) the government subsidy decreased, and the non-operating income of 1Q22 was 6.38 million yuan, which was 25.36 million yuan less than that of 1Q21, which affected the net interest rate close to 13ppt. We believe that the decline in 1Q22 net interest rate is a phased impact and is expected to remain robust throughout the year; in the long run, the construction of a new power system promotes the accelerated development of intelligence on the grid side, and there is broad room for power robot permeability improvement, and the company as an industry leader is expected to reap growth.
Profit forecast and valuation
Keep the net profit forecast for 22apt 23 unchanged. The current share price corresponds to a price-to-earnings ratio of 15.4 times / 11.8 times earnings for 22 times 23 years. Maintain the outperform industry rating, taking into account the recent decline in the valuation center of the sector, cut the target price by 24.0% to 65 yuan, corresponding to the price-to-earnings ratio of 22.2% in 23 years, which is 17.6 times earnings, which is 48.2% higher than the current stock price.
Risk
The investment in smart grid is lower than expected, the downstream customers are relatively concentrated, and the competition in the industry is intensified.