Main points of investment

Event: on the evening of August 26, the company released its 2022 mid-term report.

Affected by the epidemic, 2022H1's revenue dropped 29.5% compared with the same period last year, and its net profit changed from profit to loss 2022H1: the company realized revenue of 346 million yuan, down about 29.5% from the same period last year, and lost 26 million yuan in net profit, down about 190% from profit to loss.

In the second quarter alone, the company achieved revenue of 148 million yuan, down about 38% from the same period last year, while the net profit lost 29 million yuan, down about 347% from the same period last year. The decline in 2022H1 revenue and performance is mainly due to 1) the decline in orders in the second half of 2021 affects revenue; 2) the epidemic affects the expansion, implementation and delivery of 2022H1 projects; and 3) the increase in R & D expenses.

The gross profit margin of 2022H1 sales is 25%, which is about 1.5 pct higher than the same period last year; the net profit margin of 13.8pct2022H1 company is 25% Maolu8% respectively, which increases the gross profit margin of 13.8pct2022H1 and decreases 14pct respectively over the same period of last year. The slight increase in gross profit margin in the first half of the year is mainly due to the initial results of a variety of cost reduction strategies of the company. The expense rate of 2022H1 during the period is about 24.5%, of which the rates of sales, management (excluding R & D), R & D and financial expenses are 7%, 5.7%, 9% and 3% respectively, up about 3.7 pct, 2.1 pct, 5pct and 0.8pct over the same period last year. 2022H1 R & D expenses increased by 58% compared with the same period last year, mainly due to the company's research and development of TOPcon automation equipment and copper plating program. With the relief of the epidemic, the company's comprehensive profitability is expected to pick up in the second half of the year.

There are plenty of orders on hand, and the profitability of the main business in the second half of the year is expected to repair the strong driving force for the development of the company's main business. as of the disclosure date of the reporting period, it has not yet been confirmed that the amount of revenue-on-hand orders is about 1.07 billion yuan, compared with a large increase, and orders-on-hand orders are sufficient. At present, the new forces of photovoltaic cross-border layout of TOPcon battery field, photovoltaic industry prosperity continues, we believe that as the domestic photovoltaic automation leader, with the gradual delivery of orders and the continuous increase of new projects in the second half of the year, the profitability of the main business will be repaired.

Looking to the future: "new energy + pan-semiconductor" dual main industry development, there is more room for market capitalization in the future. 1) ficonTec: terminated by the epidemic and other technical reasons, the follow-up will be restarted when the time is ripe and various conditions are in place. It is estimated that the revenue of ficonTec2022-2024 will be 700 million yuan, and the net profit will be 0.4 billion yuan and 0.8 billion yuan respectively. According to the proportion of 80% equity, the reasonable market capitalization of the comprehensive industry will exceed 5 billion yuan in 2023. 2) Photovoltaic automation business: integrated industry Pamp E will be valued, with a market capitalization of about 3 billion to 4 billion yuan. 3) Photovoltaic process equipment: the cost of HJT is expected to be equal to that of PERC battery in 2023, and the market space of related HJT process equipment is expected to open quickly. 4) Pan-semiconductor process equipment: the products can be compared with Core Source Micro and Shengmei Shanghai; generally speaking, it is expected that there is still a large upward space for the company's total market capitalization in the next 6-12 months.

Profit forecast

It is estimated that the company's homing net profit in 2022-2024 will be 0.5-130 million yuan, respectively, and the year-on-year growth in 2023-2024 will be 167% Universe 113%, corresponding to PE 115max 44max 21X. As the leader of high-end automation equipment, new energy and pan-semiconductors are expected to increase their performance and maintain their "buy" rating in the future.

Risk hint

1) the expansion of new products is not as expected; 2) the price fluctuation of shipping, raw materials and exchange rate