Bo Liwei issued an announcement: in the first half of 2022, the company realized an income of 1.231 billion yuan / yoy+20.51%, and a net profit of 0.8 billion yuan / yoy-8%.
Main points of investment
The profitability of the second quarter is strongly repaired, and the inflection point is clear.
The company's 2022Q2 realized income of 685 million yuan / yoy+21%/QoQ+26%, realized return net profit of 53 million yuan / yoy+38%/QoQ+110%, and deducted non-return net profit of 0.53 million yuan / yoy+34%/QoQ+122%. The company's 2022Q2 gross profit margin was repaired to 18%, which was about 1.7pct higher than that of 2022Q1, and the net profit margin was repaired to 7.8%, which was about 3.1pct higher than that of 2022Q1. The financial expense rate of 2022Q2 decreased by about 1.6pct compared with the previous month. The net cash flow of the company's 2022Q2 operating activities is + 48 million yuan, which is highly matched with the net profit and significantly improved compared with 2022Q1.
The company actively promotes the conversion of the core technology platform from 18650 to 21700, internally digesting the cost pressure. At the same time, the company should deal with the price increase of raw materials and actively negotiate price transmission with customers. In addition, the change in the RMB exchange rate also plays a positive role in improving the company's profitability. On the whole, the company strengthens internal incentives, reduces costs and increases efficiency in multiple dimensions, and the profit inflection point is clear.
Energy storage is growing at a high speed, and the performance of the two-wheeler is remarkable.
The company's 2022H1 energy storage business income increased to 10%, with a strong performance; the company's 2022H1 two-wheeler business achieved income of 724 million yuan / yoy+29%, accounting for about 59%, maintaining rapid growth; and consumer battery 2022H1 income of 321 million yuan / yoy-13%, accounted for 26%. On the whole, the company's energy storage and two-wheeler business have achieved good growth, while consumer and battery business is relatively weak, and the company's consumer batteries are mainly suitable for notebook computers, mobile power supplies, etc. Due to the decline in demand in the consumer market, mainly notebook computers and mobile phones, the overall scale growth of consumer electronics is not obvious. The sharp rise in raw material prices has had an impact on consumer batteries, and the income of lithium-ion batteries has not changed much compared with the same period last year.
The company strengthens the management and control of core resources such as chips and cells, ensures the supply of core resources, actively implements chip localization, and strengthens strategic cooperation with LG and other core manufacturers.
The company's 2022H1 overseas income exceeds 600 million yuan, accounting for about 50%. Based on the company's long-term deep cultivation of Europe and the United States and other overseas markets, the company continues to expand its energy storage business, the company's energy storage business is expected to continue to grow at a high speed.
Strengthen governance, enhance the boundary of capacity, and long-term growth is expected.
On May 19, 2022, the company granted 999000 restricted shares to 128 people, accounting for about 1% of the company's total share capital at a grant price of 26 yuan per share. In terms of assessment, the income examination accounts for 60%, and the profit assessment accounts for 40%, of which the company's 2022 / 2023 / 2024 / 2025 target deduction of non-return net profit is 2 billion yuan, 3 pounds and 4 billion yuan. The company actively optimizes governance, stimulates staff vitality, and ensures long-term sustainable development. With two-wheeler as the core, the company continues to develop energy storage business and create the second growth curve.
Profit forecast
It is estimated that in 2024, the net return profit of 2022Universe 2023Universe will be 1.93Compact 400 million yuan, and eps will be 1.94Placem4.05 respectively, and the corresponding PE will be 41-27-20 times respectively. Based on the company's high-quality track, light vehicle battery has a prominent position in the European market, actively develop energy storage business in the United States and Europe and other places, equity incentives demonstrate long-term growth confidence, we are optimistic about the company's medium-and long-term development opportunities and maintain the "buy" rating.
Risk hint
Risk of policy fluctuation; lower-than-expected downstream demand; lower-than-expected product prices; risk of deterioration of the competition pattern; capacity expansion and digestion is not as expected.