New production capacity has been gradually released and performance has continued to grow. According to the semi-annual report released by the company, H1 achieved an operating income of 1.799 billion yuan in 2022, an increase of 6.53% over the same period last year, mainly due to the increase in revenue from the release of new production capacity. The net profit reached 161 million yuan, an increase of 24.86% over the same period last year, of which Q1 realized a net profit of 75 million yuan, an increase of 16.08% over the same period last year, a month-on-month decline of 8.57%. Q2 realized a net profit of 86 million yuan, an increase of 33.61% over the same period last year. The performance of Q1 Q2 with a month-on-month growth of 15.46% reversed the decline in Q1, and the performance is expected to achieve sustained growth in the second half of the year.
The scale effect is prominent, and the investment in R & D continues to increase. In 2022, the gross profit margin of H1 company was 23.95%, which was higher than that of the same period last year (2.79pct). The main reason was that the scale effect of the company gradually appeared and the average cost per unit product decreased. From the expense point of view, the expense rate of H1 Company in 2022 was 12.23%, an increase of 0.21pct over the same period last year, of which sales expenses were 42 million yuan, an increase of 48.04% over the same period last year. The main reason is that the related expenses caused by the company's overseas business expansion. The proportion of export sales of 2022H1 Company reached 40.36%, an increase of 10.96pct over the same period last year. The R & D cost reached 101 million yuan, an increase of 13.55% over the same period last year. The company continues to increase its R & D investment in areas such as 100G-400G high-speed optical modules and 5G base stations.
Aiming at the hot spots of the market, the proportion of products in the field of automotive electronics has increased. According to Prismark data, automotive PCB demand will increase from US $8.2 billion in 2021 to US $11.8 billion in 2026, with CAGR of 7.5%, 2.7% higher than the overall growth rate of PCB. With regard to the performance requirements of automotive electronics for PCB, high value-added products such as high density, high power and high speed will become the focus of demand.
In 2021, the company's automotive electronic products made a substantial growth, the proportion of sales increased from 1% to 8%, continued to maintain a steady improvement in the first half of this year, has achieved a number of large car factories and Tier1 customer certification, order demand began to steadily increase At the same time, the company has also carried out the research and development of the combination of software and hardware for lidar vehicles, high-density printed circuit boards and printed circuit boards with voltage resistance of more than 400V for vehicle power supply.
We will promote capacity expansion in an orderly manner and expand our market competitive advantage. The production capacity of the three newly built factories of 2022H1 Company has been expanded in an orderly manner, among which Ji'an Shengyi Phase I project products are located in automotive electronics, servers, communications and other middle and high-end applications. In the first half of the year, Ji'an Shengyi realized operating income of 375 million yuan, an increase of 109.65% over the same period last year, and a net profit of 26 million yuan. Dongcheng Factory (Phase IV) 5G application field high-speed and high-density printed circuit board expansion and upgrading project is expected to be trial production in Q4 this year. Ji'an factory (phase II) multi-layer printed circuit board construction project has been officially launched in 2021Q4, and plans to start civil construction at the end of August this year. The products are mainly targeted at middle and high-end automotive electronic products. The expansion project will comprehensively expand the company's production capacity in middle and high-end products and further enhance the company's core competitiveness.
[investment advice]
Since its establishment in 1985, the company has always focused on the R & D, production and sales of all kinds of printed circuit boards. The company's products are located in the middle and high-end application market, with the characteristics of high precision, high density and high reliability. according to the final product application field, it mainly includes communication equipment, network equipment, computer / server, automotive electronics, consumer electronics, industrial control and medical treatment and so on. Based on the industry outlook and first-half performance of the company, we estimate that the operating income of 2022Universe 2023 in 2024 will be 46.36 million, the net profit of homing will be 575 million, and the EPS will be 0.45, 0.57 and 0.69, respectively, with an "overweight" rating corresponding to PE of 27-21-18.
[risk Tip]
The recurrent impact of the epidemic
Downstream demand is lower than expected
The risk of rising prices of raw materials.