Event

In the first half of 2022, revenue reached 1.23 billion yuan, an increase of 21 percent over the same period last year, and net profit and non-return net profit were 0.79 and 77 million respectively, down 8 percent and 11 percent from the same period last year, of which Q2 reached 53 million and 53 million, up 38 percent and 34 percent year-on-year and 112 percent and 121 percent respectively.

Analysis

Overseas electric bike + energy storage two-wheel drive, income keeps rising rapidly. In the first half of 2022, the income of the two-wheeled car business reached 724 million, an increase of 29% over the same period last year. Under the adverse situation such as inflation and war in Europe, it still maintained a relatively high growth rate, reflecting the company's strong product strength. Q4 is the peak season for electric bikes, and the income in the second half of the year is expected to increase month-on-month. In the first half of 2022, the revenue of the energy storage business reached 124 million, an increase of 136% over the same period last year. The United States portable energy storage continues to expand new customers, while overseas households save up rapidly, and the annual revenue is expected to exceed 300 million.

Product price increase + cost reduction plus support, the net interest rate in the second quarter was 7.9%, significantly higher than in the first quarter from the beginning of the first quarter, the company's two-wheeler and energy storage and other products gradually increased prices to transmit the raw material cost pressure since 2021, at the same time through the battery replacement and chip supply and other measures to achieve cost optimization.

It is expected that the company's self-produced large cylindrical cells will be put into production in the second half of the year, and the company is expected to further reduce costs through the improvement of cell self-supply rate.

Profit forecast

It is estimated that the net profit of homing in 2022 and 2023 is 200 million and 300 million, PE39 and 26 times.

Risk hint

The sales volume of light electric vehicles is lower than expected; the capacity expansion of lithium batteries for light electric vehicles is higher than expected; the price decline is higher than expected; the pace of production expansion is not as expected; the introduction of new customers is not as expected; and the prices of major raw materials are rising faster than expected.