Main points of investment
Event: Jiadian shares announcement 2022 semi-annual report. In the first half of 2022, the company realized operating income of 1.714 billion yuan, an increase of 19.61% over the same period last year, a net profit of 152 million yuan, an increase of 11.49% over the same period last year, and basic earnings per share of 0.2541 yuan per share, an increase of 11.50% over the same period last year. In this regard, our comments are as follows:
Motor main industry to achieve steady growth, a variety of means to stabilize gross profit margin. In terms of products, the company's revenue from explosion-proof motors in the first half of 2022 was 872 million yuan (+ 21.92% compared with the same period last year), 708 million yuan from ordinary motors (+ 16.73% from the same period last year), and 84.7856 million yuan from spare parts repair (+ 31.96% from the same period last year). Other business income 49.2892 million yuan (year-on-year + 4.93%), the main motor industry achieved steady growth. At the same time, under the influence of the rising global raw material prices in the first half of 2022, on the one hand, the company raised the sales price of its products, on the other hand, the company continued to promote lean production and strengthen cost control, so as to keep the overall gross profit margin stable. In the first half of 2022, the company's sales gross profit margin was 23.94%, down 1.72 pct from the same period last year; of which, explosion-proof motor gross profit margin was 27.36%, down 0.61pct from the same period last year, and ordinary motor gross profit margin was 17.95%, down 0.72pct from the same period last year.
The net operating cash flow decreased by 69.56% compared with the same period last year, affected by the rise in raw material prices and the increase in raw material reserves. In the first half of 2022, the company's operating / investment / financing net cash flow was-170 million yuan /-4137.51 million yuan /-48.3468 million yuan, respectively, compared with the same period last year. Among them, the change of operating net cash flow increases due to the increase in raw material prices and reserves. The company's cash and cash equivalents increased by-260 million yuan in the first half of 2022, a year-on-year increase of 21.61%.
Research and development expenses increased by 171.53% compared with the same period last year, and the escort company continued to develop. In the first half of 2022, the company generated R & D expenses of 174 million yuan, an increase of 171.53% over the same period last year; R & D expenses accounted for 1.02% of operating income, an increase of 0.57pct over the same period last year. In the first half of 2022, we intensified the training of core talents, taking the "technology double headquarters" of "Jiamusi Technology headquarters + Harbin Technology headquarters" as the development model to speed up the construction of talent echelon and the sustainable development of escort companies.
Investment advice: maintain a "prudent overweight" rating. The forecast to maintain the company's homing net profit from 2022 to 2024 is 300 million yuan, 344 million yuan and 390 million yuan respectively, which is + 40.4%, + 14.7% and + 13.6% respectively compared with the same period last year. The PE valuations corresponding to the closing price on August 23, 2022 are 20.8X, 18.2X and 16.0X, respectively.
Risk tips: the risk of rising prices of raw materials, the risk of shrinking demand downstream of traditional motors, the risk of capacity expansion not as expected, and policy risks.
