Event
The results of the 2022 mid-term report announced that revenue increased by 11.19%, while net profit fell by 8.67%.
On the evening of August 25, 2022, long Magnetic Technology released its semi-annual report on 2022, showing that the company realized operating income of 448 million yuan in the first half of the year, an increase of 11.19% over the same period last year. Net profit belonging to shareholders of listed companies was 56.7689 million yuan, down 8.67% from the same period last year; net profit belonging to shareholders of listed companies after deducting non-recurring gains and losses was 47.2093 million yuan, down 19.97% from the same period last year; and basic earnings per share were 0.6095 yuan.
Brief comment
Second-quarter results are still down from a year earlier, but the quality of the data improved month-on-month. The company's second-quarter revenue was 223 million yuan, up 1.05% from the same period last year, down 0.65% from the previous quarter; the net profit from the return to the mother was 28.86 million yuan, down 12.77% from the same period last year and slightly increased by 2.69% from the same period last year; the non-net profit deducted from the mother was 26.4 million yuan, down 18.55% from the same period last year and up 26.86% from the previous quarter; compared with the first quarter, the company's second-quarter revenue decreased but its non-return net profit increased sharply, reflecting an improvement in performance and quality.
The disturbance of the epidemic has improved for a long time, and the performance has hit bottom and walked out of the golden pit. The decline in the company's net profit in the first quarter is mainly due to the advance of some expenses in business expansion, the increase in three expenses, the increase in the cost of raw materials, etc.; the performance in the second quarter did not grow as expected, in addition, it was mainly dragged down by the epidemic, and the company's orders were mainly overseas. Port logistics affected shipping and transportation, and increased transportation costs. As the epidemic only affected the pace of performance and did not change the company's target for the whole year, the company had plenty of orders on hand, and the performance was postponed to the third or fourth quarter; in addition, raw material prices fell sharply, releasing cost pressure, and the company's data are expected to be stronger in the second half of the year.
Permanent magnet capacity expansion path is clear, the scale is the first in the world. The company is a scarce high-performance ferrite permanent magnet manufacturer, downstream is mainly micro-special motors, terminals are mainly automobiles, household appliances, high certification barriers. At present, the company has formed a high-performance ferrite permanent magnet wet-pressing magnetic tile with a production capacity of 37,000 tons per year, and the Vietnam factory has increased its annual production capacity by 4,000 tons per year in the second half of the year, and completed a production capacity of 41000 tons by the end of 2022. In addition, it is planned to increase the production capacity of 10,000 tons per year from 2023 to 2024, and the total production capacity of high-performance permanent magnet materials will reach 60,000 tons per year, surpassing Japan's TDK, leaping from the fourth place in the world to the first place in the world. at the same time, the introduction of talents and the acceleration of R & D and the comprehensive standard of products are first-class in the world.
The integrated layout of soft magnetic industry chain is progressing smoothly, and the trinity of powder, powder core and inductor has developed in an all-round way. While the company's permanent magnet basic disk is growing steadily, we are making every effort to create a soft magnetic whole industry chain layout of soft magnetic powder, magnetic powder core and inductor devices. Up to now, the company has formed metal soft magnetic powder core production capacity of 4000 tons / year, soft magnetic ferrite production capacity of 3000 tons / year, which is planned to reach 5000 tons / year and 6000 tons / year respectively by the end of 2022. At the same time, the company's business extends downstream, investing 700 million yuan to build a high-frequency magnetic device project, which is planned to be completed and put into production in 2023, building the whole industry chain of soft magnetic materials, which has more cost advantages. With the development of photovoltaic, new energy, energy storage and other fields, the demand for soft magnetism and inductance will increase greatly, and the company will open up the room for growth.
Profit forecast and investment advice
It is estimated that the company's revenue in 2022-2024 will be 1.78 billion yuan, an increase of 27.9%, 30.0%, 32.9%, and 16.0%, 31.6%, 40.4%, respectively, corresponding to EPS 1.317,000,000 yuan and PE 25.1191max 13.6 times. With the rapid growth of new energy vehicles, photovoltaic and other industries, the demand for high-performance permanent magnet ferrites, soft magnets and inductors has increased greatly. as a scarce manufacturer of high-end permanent magnet materials, the company will be world-class in scale and technology. benefit from the high growth of the industry and the company's size and profitability, at the same time, the company cut into the field of soft magnetic and new energy components with higher demand growth, the integrated layout of the soft magnetic industry chain has more advantages. With high growth, given a "buy" rating.
Risk hint
The project production schedule is not as expected, the risk of price fluctuations, and policy changes affect downstream demand.