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On August 25, 2022, Bailey Technology released its semi-annual report of 2022, announcing that its operating income was 950 million yuan, + 174.2% compared with the same period last year; net profit from home was 61.893 million yuan, + 68.4% year-on-year; and earnings per share was 0.13 yuan, + 85.7% compared with the same period last year.
Comments:
With the volume of revenue and high performance, the company has entered the order carry-over cycle.
22H1's revenue is 950 million yuan, year-on-year + 174.2%; net profit from home is 61.893 million yuan, year-on-year + 68.4%; net profit from non-return is 59.957 million yuan, year-on-year + 69.8%; corresponding to earnings per share is 0.13 yuan, year-on-year + 85.7%; gross profit margin and net profit rate are 16.3% and 6.5% respectively, compared with last year-7.8pct and-4.1pct The expense rate is 11.1%, which is higher than that of the previous year-18.1pct, in which the rates of management and R & D expenses have dropped a lot. From a quarterly point of view, Q1-Q2 revenue is + 66.0% year-on-year and + 326.4%, performance is + 2.5% and + 361.5% respectively, and gross profit margin is 20.5% and 14.1% respectively. The company's order carry-over accelerated in the second quarter. The higher revenue growth rate than the performance growth rate of 22H1 is mainly due to: 1) the gross profit margin of the company's lithium battery business has dropped a lot; 2) the income tax provision is 9.181 million yuan, which is + 703.3% compared with the same period last year.
Abundant orders, high pre-receipt, and reversal of impairment work together to ensure high performance in the future.
The newly signed order of 22H1 Company is 2.14 billion yuan, about 27.9% of the same period last year, including 150 million yuan for chemical business and 1.99 billion yuan for lithium power business, + 32.6% year-on-year. By the end of 22H1, the company's prepayment and inventory were 460 million yuan and 430 million yuan respectively, which were + 727.0% and + 240.3% respectively compared with the same period last year, indicating that with the high increase in orders, the company's equipment procurement and inventory increased synchronously; the company's accounts receivable and bills totaled 870 million yuan, + 14.7% compared with the same period last year; the contract debt was 860 million yuan, + 217.9%, accounting for 82.4% of 21-year revenue In addition, the company recently signed a supplementary agreement with Lubao Xinghai, and it is expected that the impairment of its equity investment will return 1.40 and 120 million yuan respectively in 22-23. Taking into account the abundant stock orders of the company, the high number of newly signed orders, the higher proportion of pre-received accounts as a percentage of revenue and the impairment back to expectations, the future performance of the comprehensive security company will be high.
Business depth expansion space is huge, is expected to break through the growth space ceiling again.
At present, the company's business begins to expand vertically from the EPC general contract model, and the smooth acquisition of 60% equity interest in Wuxi Baistone, an industrial kiln external circulation equipment company, and the 60% equity acquisition in Suzhou are being actively promoted. Through independent research and development or epitaxial mergers and acquisitions, the company can increase the self-financing ratio of equipment, increase the added value of products, and then improve the level of profit margin. And it is expected that after establishing the advantages of lithium equipment research and development and manufacturing process, the company has the potential to realize the production of core raw materials in areas such as silicon-carbon negative electrodes, solid electrolytes and hydrogen fuel cells, so as to break through the growth ceiling again and further raise the valuation.
Revenue burst, excellent performance, entered a period of rapid growth, maintain a "strong push" rating:
The company's forward-looking layout of lithium business, from the traditional chemical industry to lithium EPC and lithium equipment track switch. At present, the company has abundant orders for lithium power business, and the proportion of self-supplying equipment with high gross margin continues to increase, and it is expected that it has the potential to realize the production of lithium core raw materials in the future and constantly break through the growth ceiling. Based on the company's R & D and process advantages, fully enjoy the industry demand outbreak dividend, is expected to maintain rapid growth in the future. We maintain the company's earnings per share forecast of 0.52,0.67,0.86 yuan for 22-24 years (taking into account the expected earnings per share for 22-23 years after the impairment is expected to be 0.75 yuan and 0.85 yuan respectively), corresponding to PE of 30.1,23.2,18..2 times, maintain the target price of 21.0 yuan, maintain the "strong push" rating.
Risk hint: the lithium market is falling faster than expected, and the company's expansion speed is not as fast as expected.