Event: Boqian Xincai released its semi-annual report of 2022, with revenue of 495 million in the first half of the year, + 8.05% year-on-year, net profit of 101 million,-9.2%, and non-net profit of 98 million,-10.0%.
The profitability of Q2 has improved significantly, and the net profit from the home has improved compared with the previous month. 1) the company's Q2 revenue is under pressure under the influence of the MLCC boom and the epidemic situation, and it is expected to pick up in the second half of the year. In 2022, the company achieved revenue of 495 million yuan, + 8.05% compared with the same period last year, of which Q2 revenue in a single quarter was 242 million yuan,-6.53% year-on-year and-4.43% month-on-month, mainly due to weak demand in the consumer electronics market, the declining prosperity of the MLCC industry, and the impact of the epidemic in the second quarter. Q2 revenue declined slightly compared with the previous quarter. As the epidemic gradually recedes, and the demand of the MLCC industry may pick up in the second half of the year, the company's nickel powder production, sales and revenue are expected to boost. 2) the adjustment of nickel powder pricing model and exchange earnings led to the rebound of Q2 profitability, so the return-to-home net profit ratio was significantly improved. The company's Q2 gross profit margin / net profit rate rose to 37.4% / 24.2%, month-on-month + 5.3/+7.2pct, and profitability improved significantly, mainly due to the adjustment of the company's nickel powder pricing model (starting from mid-March 2022, the company's product pricing was adjusted to an one-month or three-month nickel raw material average price + processing fee model), so that the raw material cost can be transmitted downstream. In addition, the company accounts for more than 70 per cent of overseas revenue and is mainly settled in US dollars, so the appreciation of Q2 US dollars brings the company about 11 million exchange gains. In the end, the company's Q2 homing net profit reached 58 million yuan, with a month-on-month ratio of + 36%.
Silver-coated copper powder + nano-silicon powder and other new product research and development to broaden the company's future growth space. 1) silver-coated copper powder:
In the first half of the year, the company built a new trial production line of silver-coated copper powder for HJT battery, continuously promoted the product stability test, and provided technical support for the follow-up large-scale mass production. HJT cells are expected to become the mainstream technology of the next generation of photovoltaic cells. Silver-coated copper powder instead of silver powder is an important way to reduce the cost of HJT cells. In the future, the company's related products may greatly benefit from the volume of HJT cells and the domestic trend of silver paste. 2) nanometer silicon powder:
In the first half of the year, the company effectively improved the per unit yield efficiency of silicon powder through process optimization. with the industrialization of silicon-carbon negative electrode, nano-silicon powder has a strong potential for demand explosion in the future. at present, the company is actively carrying out sample evaluation with downstream anode material customers and is progressing smoothly, and the follow-up is expected to start gradually.
Profit forecast and investment advice: the company is expected to make a net profit of 2.7,3.6 and 460 million yuan in 2024, taking into account the improvement in the profitability of the company's nickel powder, and new products such as silver-coated copper powder and nano-silicon powder are expected to expand the company's long-term growth in the future, covering and giving "overweight" rating for the first time.
Risk hint: downstream demand is lower than expected risk, policy change risk, new product research and development progress is slow.