On August 5, the company released the semi-annual report of 2022 and obtained the notice of letter of intent for the designated customer project.
Under the influence of the epidemic, various operational indicators are still improving. In 2022, H1 realized operating income of 395 million yuan, an increase of 3.98% over the same period last year; gross profit increased by 2.65% over the same period last year, and total gross profit increased by 28.27%; net profit returned to the home was 25 million yuan, up 5.45% over the same period last year; and non-net profit was 21 million yuan, an increase of 19.80% over the same period last year. In order to cope with the rapid growth and continuously upgraded products and business forms, the company continued to increase R & D investment, with R & D investment of 18 million yuan in the first half of the year, an increase of 76.20% over the same period last year.
At the same time, the company has established a sound R & D process, continuously expanded R & D personnel, enriched the talent level of R & D team, expanded Guilin R & D base and added Huizhou-Xuzhou R & D base on the basis of original R & D in Shenzhen and Shanghai, and continued to increase long-term asset investment. the original value of fixed assets increased by 26 million yuan in the current period, an increase of 747.95% over the same period last year.
We believe that the company has fully benefited from two major industry dividends:
1. Under the domain control, the screen machine is separated and reshaped the industrial chain. The traditional mode of purchasing modules from Tier2 by Tier1 has become a thing of the past, and the combination of screen and domain controller has gradually become the mainstream. The profits of vehicle assembly are facing redistribution within the industry chain. As a Tier2 with system development capability, the company upgrades its clamping position to Tier1 and supplies complex modules directly to car enterprises, which is expected to achieve a leap increase in order increment and gross profit margin.
2. The intelligent cockpit accelerates infiltration, and the company's main products are expected to rise in volume and price. With the continuous upgrading of cockpit intelligence, the demand of three-dimensional and multi-mode interaction brings the cockpit display to multi-screen, large size and diversified layout. The number of display bicycles is expected to quickly rise from 1-2 to more than 3, and the value of bicycles is expected to rise from about 1500 yuan to more than 6000 yuan, with a broad market space in the future.
At present, the company has more than 10 billion orders on hand, providing momentum for the rapid growth of performance. As of the date of disclosure of this announcement, the cumulative amount of outstanding delivery has been about 10.408 billion yuan, of which about 2.148 billion yuan has been received since the last fixed-point announcement (April 15, 2022). The amount of new fixed-point delivery is about 240 million yuan. Provide customized development and supply services for domestic mainstream system integrators and mainframe manufacturers for a variety of central control, LCD meters, co-driver rear entertainment, HUD, etc., the project cycle is expected to be 2-8 years, mainly concentrated in 3-5 years.
The factory is progressing smoothly and will turn to independent production mode to break through the bottleneck of capacity constraints.
In order to meet the current production of fixed-point projects on hand, the company's two self-built simple module production lines in Jiaxing have been put into production, and the self-built temporary plant in Nantong will also be put into production in September this year, including SMT line, bonding line and final assembly line, which can realize the independent production of 7-48 inch single screen, double screen, triple screen and V-shaped screen. At the same time, the company's 155 mu self-built main factory building has also completed the design planning, and it is expected that Q3 will be completed and put into use in 2023. The main plant will continue to expand the production lines of simple modules, intelligent modules and screen display systems, intelligent cockpit domain controllers and advanced auxiliary driving systems, intelligent network terminals, etc.
Profit forecast: it is estimated that the operating income from 2022 to 2024 will be 9.5pm 18.2 / 2.88 billion yuan respectively, and the net profit of returning to the mother will be 0.8pm 170,000,000 yuan respectively, maintaining the "recommended" rating.
Risk Tips:
(1) Industry competition risk
(2) the risk of recurrent epidemic situation
(3) the risk of high concentration of suppliers
(4) the risk of insufficient R & D and innovation capability.