Without fear of the disturbance of the epidemic, the income grew steadily. The company announced that in the mid-2022 report, 22H1 achieved an income of 405 million yuan, + 24.45% compared with the same period last year, 35 million yuan, + 27.88%, and 33 million yuan, + 32.96%, respectively. In the single quarter of 22Q2, the company achieved revenue of 201 million yuan, year-on-year + 23.82%, month-on-month-1.41%; return-to-mother net profit 20 million yuan, year-on-year + 37.65%, month-on-month + 34.03%; deduction of non-return net profit 18 million yuan, year-on-year + 30.33%, month-on-month + 26.52%. Although the production of the company's Songjiang plant was greatly affected by the epidemic in the second quarter, the company's 22Q2 revenue and profits still showed good resilience.
Gross profit margin has improved significantly. 22H1's gross profit margin is 26.85%, year-on-year + 0.37pct; net profit margin is 8.68%, year-on-year + 0.23pct. 22Q2 single-quarter gross profit margin is 29.00%, year-on-year + 0.12pct, month-on-month + 4.27pcts; net profit rate is 10.02%, year-on-year + 1.01pcts, month-on-month + 2.65pcts. The profit margin has improved significantly, which we believe is mainly due to: 1) the decrease in the price of upstream raw materials and the easing of the pressure on the cost side; 2) the improvement of the company's product structure and the increase in the proportion of high-margin products.
Automotive connector products contribute mainly to revenue increment. From a business point of view, 22H1's automotive precision connectors, components and accessories earned 262 million yuan, + 21.05% compared with the same period last year; automotive precision shielding and structural parts earned 19 million yuan, + 51.95%; mobile phone precision connectors earned 11 million yuan,-14.63%; and mobile phone precision shielding and structural products earned 83 million yuan, + 39.18%. The company's 22H1 revenue increased by 80 million yuan compared with the same period last year, of which the contribution income of automotive precision connectors and components and accessories products increased by about 46 million yuan.
Be optimistic about the long-term development of the company. Despite being disturbed by the epidemic, the company performed steadily in the first half of the year; as the epidemic alleviates, the second half of the year is the traditional peak season for car sales, and the company is expected to achieve better growth.
Looking to the future, as a high-quality automobile connector enterprise in the precision manufacturing track for nearly 20 years, the company is expected to fully benefit from the wave of automobile electrification and intelligence and maintain a good growth momentum. Maintain the company's annual homing net profit forecast of 0.76 million in 22-23-24, with an "overweight" rating of 279 million.
Risk tips: new product sales are not as expected; industry competition aggravates risks; macroeconomic downside risks