Yi Delong released the semi-annual report of 2022: in the first half of 2022, the company realized operating income of 990 million yuan, an increase of 30.06% over the same period last year, a net profit of 93 million yuan, a decrease of 13.68% over the same period last year, and a net profit of 91 million yuan, a decrease of 11.24% over the same period last year.
Main points of investment
Affected by the fluctuation of raw material prices, the company's profits are under short-term pressure in the first half of 2022. Affected by the epidemic in East China, some upstream chips remain in shortage. The company needs to buy high-priced raw materials spot in order to ensure product delivery, resulting in a rise in raw material costs. Therefore, the company's 2022H1 homing net profit is under certain pressure. In a single quarter, 2022Q2 achieved revenue of 500 million yuan, an increase of 26.41% over the same period last year, and a net profit of 38 million yuan, down 41.55% from the same period last year. From the perspective of downstream application industries, the business income of communication, industrial control, medical electronics and automotive electronic products has increased in different ranges, among which the income growth of medical electronics, automotive electronics and industrial control products is higher. In terms of profitability, 2022H1 achieved a gross profit margin of 25.44%, down 3.71pct from the same period last year, and a net profit rate of 9.73%, down 4.62pct from the same period last year. In terms of expenses, the rates of sales, management, finance and R & D expenses of 2022H1 Company are 1.23%, 4.05%, 0.12% and 4.59% respectively, and the expense rate remains stable.
Firm differentiation market strategy, give full play to the advantages of platform enterprises and fine management
Under the trend of specialization and division of labor in the global electronics industry, the market capacity of the global EMS industry is gradually expanding. According to New Venture Research statistics, the global EMS industry market reached US $682.7 billion in 2021, an increase of 14.8% over the same period last year, of which the Asia-Pacific region EMS market accounted for 71% of the global market share. It is expected that the global EMS industry market size will reach US $946.5 billion by 2026, and the industry has broad prospects. The company deeply ploughs the EMS industry, based on the differentiated market strategy, and locates the subdivided industry customers with high quality requirements and diversified needs. 2022H1 maintains a deep cooperative relationship with customers in various industry segments such as Stanley Pot, Komp, Chaochao and Shanghai Lianyu, and continues to open up new customers. At the same time, the company continues to expand in the field of automotive electronics and new energy power applications, laying the foundation for the follow-up long-term development. The company actively promotes the integration of platform resources and continues to further promote process improvement in management. The SAP-ERP system and SAPEWM system, which were revamped in 2021, have been officially switched to the line in July, and the use of the new system will help the company to reduce inventory and continuously improve management efficiency. In addition, the company actively promotes market development and expands the company's capacity layout. The company plans to invest three SMT production lines in Mexico, one of which has been completed and entered the stage of mass production in 2022; four SMT production lines are planned to be put into production in Vietnam, which is expected to be put into production by the end of November this year. The construction progress of more than 50,000 square meters in the first phase of the second phase of the company continues to advance. After a total of 170000 square meters in the first and second stages are put into use, it is estimated that the output value corresponding to the total production capacity will reach 10 billion yuan. We believe that as a leader in flexible manufacturing, the company is deeply engaged in the EMS market, and under the background of the transfer of the global electronic manufacturing service industry to China, the company is expected to achieve long-term growth by virtue of the customized strategy of "small batch, multi-variety" and continuous excavation of high-quality customers.
Profit forecast
The forecast company's income from 2022 to 2024 is 21.90,28.22,3.628 billion yuan respectively, and the EPS is 1.74,2.43,2.99 yuan respectively. The current stock price corresponds to PE 18,13,10 times respectively, maintaining the "buy" investment rating.
Risk hint
The downside risk of industry prosperity, the risk of raw material price fluctuation, the risk of capacity construction not as expected, the risk of intensified competition in the industry, and so on.
