22H1's net profit is 251% year-on-year, maintaining the "buy" rating company 22H1's revenue of 4.705 billion yuan (yoy+68.4%) and its net profit of 405 million yuan (yoy+251%). 22Q2's net profit is 239 million yuan, which is better than we expected (180 million yuan).
The company's profitability has improved better than we had expected, and the price performance of rare earths in the upstream is weak, so we slightly lower the price assumption of rare earths. Finally, the net profit of homing in 22-24 years is estimated to be 1.583 billion yuan (the previous value is 650pm, 919,229 million yuan). Comparable company Wind unanimously expects the average PE (22e) to be 28.5x. Considering that the company's performance is expected to benefit from both volume growth and improved profitability, the company is given a 22-year 30XPE with a target price of 20.40 yuan (the previous value is 14.90 yuan) to maintain a buy rating.
Multi-factor resonance, 22H1 homing net profit increased by 251% compared with the same period last year.
According to the semi-annual report, the main driving factors for the increase in the net profit of the company's 22H1 as shareholders of the listed company over the same period last year are: the increase in orders year-on-year through increased market development efforts; the increase in the price of the company's products compared with the same period last year; the company's advantage in cost control by strengthening the centralized procurement of raw materials; and the increase in exchange earnings due to the devaluation of the RMB.
22Q2 continues to improve its profitability in a single quarter
According to the company announcement, the company has signed fixed-price sales agreements with some customers, affecting the 20-year gross margin performance. In the past 21 years, the company's single-quarter profitability has been gradually repaired. The single-quarter sales gross profit margins of 22Q1 and 22Q2 are 17.48% and 18.49% respectively, compared with-0.36 and + 1.01pct respectively, and the net sales profit margins of the same period are 9.01% and 11.07% respectively, compared with-0.77% and + 2.06pct respectively. 22Q1's profitability fell slightly month-on-month, or due to relatively off-season sales. According to the Investor Summary (22.04.27), generally speaking, the company's first quarter is the quarter with relatively few orders, and the fourth quarter is the quarter with the largest number of orders. According to investor interaction platform 21.12, the company said that Lexi's loss-making order (fixed price sales agreement) will end with 22Q1; as a result, 22Q2's profitability continues to improve in a single quarter.
The company's capacity continues to expand, and it is expected that 22H2 new capacity will be gradually put into production according to the Investor Summary (2204.28), the company's 21-year sinter NdFeB production capacity of 20,000 tons, bonded NdFeB production capacity of 1500 tons, the company plans to use rights issues to raise funds and self-raised funds to increase sintering NdFeB production capacity of about 10,000 tons, we expect 22H2 new production capacity to gradually put into production, 22 before the end of the company sintering NdFeB production capacity will reach 30,000 tons. At the same time, the company said in the "Investor Summary" (22.04.28) that if the order situation and market demand are very good, the company will be able to expand production by about 21000 tons around the end of 24, that is, Vision's NdFeB production capacity is planned to reach 51000 tons.
Risk hint: macroeconomic is not as expected, downstream demand is not as expected, and industry policy has changed.