Events: on August 26, the company disclosed its 2022 half-year performance report that H1 realized operating income of 869 million yuan in 2022, + 177.64% year-on-year; net profit of 27 million yuan, + 63.99%; deducting non-return net profit of 6 million yuan, + 131.64%; gross profit margin of 14.50%, year-on-year-5.74pct.
Q2 realized operating income of 516 million yuan, year-on-year + 117.98%, net profit of 9 million yuan, year-on-year-38.68%, and non-return net profit of 4 million yuan,-59.28%.
Comments:
Take advantage of the new energy spring breeze, revenue and net profit ushered in rapid growth. In 2022, H1 Company achieved operating income of 869 million yuan, + 177.64% compared with the same period last year, mainly due to the growth of new energy vehicles in the first half of the year, with production and sales reaching 266.1 and 2.6 million respectively, an increase of 1.2 times over the same period last year, and the market penetration reached 21.6%. The net profit of return to the mother is 27 million yuan, + 63.99% compared with the same period last year. If the influence of 20 million yuan in share incentive fees is deducted, the net profit will reach 47 million yuan, + 176.47% compared with the same period last year, which is basically consistent with the revenue growth rate. Q2 gross profit margin in 2022 is 13.36%, year-on-year-6.7pct, month-on-month-2.81pct, mainly due to the increase in the price of core raw materials such as copper, aluminum, rare earths and the increase in the proportion of electric drive assembly business with low gross profit margin.
Sales of power and electric drive assemblies have increased significantly, with assembly business accounting for about 70% of revenue. In 2022, H1 company's power assembly business income was 295 million yuan, year-on-year + 394.04%, gross profit 11.25%, year-on-year-2.63pct, power assembly shipped 242100 units, year-on-year + 309.64%, market share reached 10.6%, year-on-year + 5.76pct, ranking third in the passenger car market. The business income of electric drive assembly is 290 million yuan, year-on-year + 538.44%, gross profit 4.01%, year-on-year-0.13pct, electric drive assembly (including motor controller) sold 117000 units, year-on-year + 49.04%, market share 4.50%, year-on-year-2.01pct. Through technological innovation and market development, the company has become a designated supporting enterprise of dual-motor controller assembly products for many hybrid vehicles, such as FAW-Volkswagen, SAIC-GM Wuling, etc. Among them, the supporting products of Wuling hybrid models will be delivered in mass production in the second half of 2022.
Fixed increase raised nearly 1 billion yuan to expand production, laying the foundation for performance growth. In terms of production capacity, the company has Zhuhai headquarters and Shandong Heze northern base, with a production capacity of 50 and 200000 sets respectively. In March, the company released the Feasibility Analysis report on the use of funds raised by issuing A-shares to specific targets (revised version), which plans to raise 976 million yuan for the expansion of production bases in Zhuhai and Shandong and the construction of a new Zhuhai R & D center. Zhuhai project is divided into two phases, each phase of the project will add 100000 sets of power assembly and 100000 sets of drive assembly production capacity, Shandong project construction period of 1.5 years. After completion, the Shandong base will have the production capacity of 200000 sets of A00 class motor controllers, 200000 sets of A00 class motors, 100000 sets of special vehicle motor controllers, 100000 sets of special vehicle motors and 200000 sets of power supplies and power assemblies. In terms of orders, the company's supporting new energy models have further increased, and core customers such as BYD Automobile, Hezhong, Chery, Geely and XPeng Inc. have performed well, bringing abundant orders for the company.
Profit forecast and investment rating: as the leading electric drive and power supplier in China, the company will continue to benefit from the electrification process of the automotive industry. We estimate that the return net profit of the company from 2022 to 2024 is 46 million yuan, 172 million yuan and 488 million yuan respectively, the corresponding EPS is 0.28,1.04,2.95 yuan respectively, and the corresponding PE is 241,64 and 23 times respectively.
Risk factors: raw material price fluctuations, production and sales of new energy vehicles are not as expected, customer development is not as expected, and epidemic mitigation is not as expected.
