Event

Amatton released the semi-annual report of 2022: the company's operating income in the first half of 2022 was 1.469 billion yuan, an increase of 67.63% over the same period last year. The net profit belonging to shareholders of listed companies was 42.9863 million yuan, an increase of 84.65% over the same period last year. Of this total, the operating income of Q2 was 764 million yuan, an increase of 154.64% over the same period last year, and the net profit of returning home was 31.946 million yuan, an increase of 240.14% over the same period last year.

Main points of investment

2022H1's operating income is growing rapidly, and its profitability is improving.

In terms of revenue, H1 Amatton's operating income in 2022 was 1.469 billion yuan, an increase of 67.63% over the same period last year, of which Q2 revenue was 764 million yuan, an increase of 154.64% over the same period last year. On the profit side, the return net profit of H1 company in 2022 is 42.9863 million yuan (+ 84.65%), Q2 is 31.946 million yuan (+ 240.14%), H1 deducts the non-return net profit is 27.6069 million yuan (+ 163.5%), Q2 is 23.4924 million yuan (+ 176.81%). The main reason is the substantial increase in photovoltaic glass shipments. In addition, the increase in the company's investment income and the decrease in credit impairment together increased the company's profit by about 18.74 million yuan, accounting for a high proportion of the company's profit. Overall, the company's reported performance is lower than the previous forecast of the lower limit of homing net profit.

In terms of profitability, the gross profit margin of H1 company in 2022 was 7.27%, down 1.19% from the same period last year, and the net profit rate was 3.03%, an increase of 0.20% over the same period last year. The gross profit margin and net profit margin of Q1 are 4.99%, 1.65%, 9.38% and 4.31% respectively. The main reason for the increase in Q2 profitability is the rise in the price of photovoltaic glass in the second quarter.

Photovoltaic glass drives profit growth, and profitability is expected to continue to improve in the second half of the year.

After the adjustment of the company's strategy, the company focused on glass integration business. In 2022, H1 photovoltaic glass business revenue increased by 79.26% year-on-year, and gross profit margin decreased by 1.37% year-on-year. Considering the rise in photovoltaic glass prices in the second quarter, the company's photovoltaic glass business gross profit margin Q2 increased from 4.99% to 9.38%. The gross loss of the company's components and electronic glass business reached 20.47 million yuan, of which H1 photovoltaic module business revenue fell 56.64% year-on-year, gross profit margin decreased 49.95pct year-on-year, electronic glass business revenue increased 29.96% year-on-year, but gross profit margin decreased 12.44pct.

In 2022, with the improvement of the company's deep processing capacity utilization and photovoltaic glass.

Glass price upward, the company's photovoltaic glass business profitability improved significantly, while sales growth is faster than the same period last year, the company's photovoltaic glass business is growing rapidly. At present, the joint venture company established by the company and Southern Glass has won the quartz sand rights, and the cost of quartz sand in the follow-up raw materials is expected to further decline. at the same time, the price of heavy soda ash has gradually dropped from a high of 2950 yuan / ton in July to 2832 yuan / ton. Showing a downward trend. We expect the profit of the company's photovoltaic glass business to continue to improve.

The differential competition path of ▌ ultra-thin glass is worth looking forward to, and the loss reduction of electronic glass is "on the road".

The company has outstanding core competitiveness in the field of ultra-thin glass. The company's ultra-thin photovoltaic glass yield, diversity and performance indicators are better than their peers, conforming to the trend of lightweight industry, and enjoy advantages in BIPV and other application fields. The company has signed a "strategic cooperation agreement" with Tianhe on 1.6mm ultra-thin photovoltaic glass, with a total amount of 7.4 billion yuan. The differential competition path of the company's ultra-thin photovoltaic glass is worth looking forward to.

In terms of electronic glass business, the company announced in April that its subsidiary planned to invest in the construction of 5 million large-size display optical laminating production lines in Fengyang, Anhui Province, and announced on August 15 that it would invest 100 million yuan to build an optoelectronic display glass subsidiary in Shiyan, Hubei Province. In recent years, the company has gradually established the photovoltaic / photovoltaic glass production integration strategy, this optoelectronics company's investment will further improve the company's vertical integration layout in the field of optoelectronic glass, and enhance the company's core competitiveness in this field.

Profit forecast

Regardless of the impact of additional issuance on performance and equity, we predict that the return net profit of the company from 2022 to 2024 is 1.88,2.89 and 434 million yuan respectively, the EPS is 0.94,1.45 and 2.18 yuan respectively, and the current stock price corresponds to 48.8,31.7 and 21.2 times of PE respectively.

Risk hint

1) the installed capacity of photovoltaic power station is not as expected; 2) BIPV is not as expected; 3) the cost of raw materials is rising; 4) the company's technology leading edge is not as expected.