Event: Hua an Xinchuang released the 2022 semi-annual report and obtained the announcement of the designated letter of intent of the customer project.
2022H1 achieved a total operating income of 394 million yuan (+ 3.98% compared with the same period last year) and a net profit of 25.3655 million yuan (+ 5.45% year-on-year). Among them, the operating income in the second quarter was 231 million yuan (year-on-year-7.67%, month-on-month + 40.94%), and the net profit was 19.8867 million yuan (year-on-year + 1.05%, month-on-month + 262.98%). In addition, the total amount of undelivered projects has reached 10.408 billion yuan, with customers covering domestic mainstream system integrators and mainframe factories. Among them, since the last fixed-point announcement (April 15, 2022), we have received a new fixed-point outstanding amount of about 2.148 billion yuan, and a new fixed-point delivery amount of about 240 million yuan.
The performance was in line with expectations, R & D investment and fixed assets increased significantly compared with the same period last year, accelerating the transformation into Tier1:
In the first half of 2022, under the influence of COVID-19 epidemic in Jilin, Shanghai and other places, the overall operation of the company was under pressure, but still maintained a positive growth trend of revenue and profit compared with the same period last year, and the overall performance was in line with expectations. At the same time, since the first half of the year, the company has worked hard to accelerate the transformation from Tier2 to Tier1, which is embodied in: (1) increasing the construction of R & D team, and the total R & D investment in 2022H1 has increased by 76.2% compared with the same period last year. Expand the Guilin R & D base and add Huizhou and Xuzhou R & D bases on the basis of the original R & D in Shenzhen and Shanghai. (2) accelerate the construction and launch of Tier1 production capacity, and increase the fixed assets of 2022H1 by 26.458 million yuan (+ 747.95% compared with the same period last year). According to the company's fixed-point announcement data, the self-built temporary plant in Nantong, Jiangsu will start production in September, which can realize the independent production of screen display system products such as 7-48-inch single screen, double screen, triple screen and V-shaped screen.
At present, as a Tier1, the company has successfully won a number of head mainframe factory central control, LCD instrument screen display system customized development projects, in hand production orders of more than 10 billion yuan, assuming that the 4-year project cycle estimates, can increase the annual income elasticity of about 2.5 billion. Looking to the future, with the company's Tier1 production line has been put into production, the company's product bike value and profitability are expected to achieve a substantial increase, towards a new journey of development.
Investment suggestion: we expect the return net profit of the company from 2022 to 2024 to be 0.82,1.95 and 314 million yuan respectively, corresponding to the current market value, the PE is 62.8,26.4 and 16.3 times respectively, maintaining the "buy-A"
Rating, 6-month target price of 84.95 yuan per share.
Risk hint: the lack of core in the automobile industry is aggravating; the production capacity is not as fast as expected.