Announcement: 1H22's revenue was 490 million yuan, up 8.1% from the same period last year; net profit from home was 101 million yuan, down 9.16% from the same period last year; and non-net profit was 98 million yuan, down 10.0% from the same period last year. Of this total, the revenue of 2Q22 was 240 million yuan, down 6.5% from the same period last year, the net profit of returning to the mother was 58 million yuan, down 1.1% from the same period last year, and the non-net profit was 56 million yuan, down 2.4% from the same period last year.
By reducing the cost and increasing efficiency, optimizing the process and adjusting the product pricing model, 2Q22's gross profit margin and net profit margin were significantly repaired. In the first half of 22, the company faced the pressure of rising raw material prices and repeated outbreaks. In mid-March, the company changed its pricing method and transferred part of the risk of price changes of raw materials downstream, while optimizing the process to reduce costs. 2Q22 gross profit margin repair 5.3pct to 37.4% X 2Q22 net interest rate repair 7.2pct to 24.2%.
1H22 nickel powder business is advancing steadily. The revenue of 1H22 nickel powder was 417 million yuan, up 9.67% from the same period last year, and the proportion of revenue increased by 1.25pct to 84.37% compared with the same period last year. For 21 years, the company deeply ploughed consumer grade MLCC nickel powder and copper powder, and accelerated the layout of 80nm finished nickel powder, automotive specification grade MLCC nickel powder and copper powder sample delivery and customer certification. 22 years will accelerate the promotion of 80nm, 180 nm, 200 nm finished nickel powder market layout.
In 2020, the market space of MLCC internal electrode is about 4.4 billion RMB, and the company has achieved a breakthrough in the monopoly pattern of Japanese enterprises.
We estimate that the market space of internal electrodes in MLCC is about 4.4 billion yuan in 2020 and is expected to increase to nearly 8 billion yuan in 2025. At present, there are only a few enterprises in the world that mass produce and sell nickel powder for MLCC on a large scale, except for Japanese enterprises.
The alloy powder keeps a fast growth rate. The revenue of 1H22 alloy powder was 5 million yuan, an increase of 64.45% over the same period last year, accounting for 0.93% (up 0.32pct compared with the same period last year); and silicon powder was 64000 yuan, accounting for 0.01% of the income. We believe that with the improvement of product performance and the promotion of market development, the second curve of new products such as alloy powder and silicon powder will be gradually formed.
The research and development of silver-coated copper powder and nano-silicon powder has been steadily advanced. 1H22 invested 30 million yuan in R & D, an increase of 55.37% over the same period last year, and set up an R & D center in Ningbo with its own funds. In addition, the company has built a trial production line of silver-coated copper powder for HJT heterojunction battery to promote large-scale mass production of silver-coated copper powder; in the application field of negative materials for lithium batteries, the production process has been continuously optimized and the per unit yield efficiency of silicon powder has been effectively improved. It is expected that more than 23 years of two new products are expected to be released.
Adjust earnings forecasts and maintain buy ratings. It is optimistic that the company's nickel powder business will continue to achieve high growth through expanding customers, expanding new products and expanding new areas, and the layout of the second curve of new products will be firmly promoted. Taking into account the pressure of rising prices of raw materials, repeated epidemics and the weak market for consumer electronics, the net profit forecast for 22-24 is lowered to RMB 2.8pm (the original value is RMB 330,000), and the buy rating is maintained.
Risk hints: lower-than-expected demand growth; lower-than-expected volume of new products; risk of rising prices of raw materials; exchange rate risk; litigation risk, etc.