Event: the company disclosed its mid-2022 report that its operating income in the first half of the year was 4.595 billion yuan, an increase of 5.81% over the same period last year; its net profit was 187 million yuan, an increase of 3.82% over the same period last year; and its non-net profit was 110 million yuan, down 34.75% from the same period last year.
The comments are as follows:
Under the influence of the epidemic and the shutdown, the income increased steadily, and the newly signed orders maintained rapid growth. Q2 realized revenue / net profit of 2.528 billion yuan / 133 million yuan, an increase of 2.48% and 47.57% over the same period last year. 1) the income of light steel structure increased significantly in the first half of the year. From a product point of view, the company's multi-and high-rise steel structure / light steel structure / service industry revenue / building materials products respectively reached RMB 3.4948 million, with a year-on-year change of-1.6% per cent, 44.2 per cent, 21.6 per cent and 45.5 per cent, respectively. The light steel structure is growing well. 2) newly signed orders maintain a rapid growth of more than 30%. The company's newly signed contracts totaled 8.082 billion yuan, up 35.69 percent over the same period last year, of which the cumulative amount of steel structure contracts was about 5.313 billion yuan, up 35.56 percent over the same period last year. The total amount of orders that have won the bid for steel structure business but not yet signed is about 1.971 billion yuan; the cumulative amount of Wanxian Green Construction contract is 2.649 billion yuan, an increase of 33.26% over the same period last year. 3) profitability has basically remained stable and cash flow has improved. In the first half of the year, the company's gross profit margin / net profit margin changed from 0.36pct/-0.2pct to 14.91% to 4.26% Q2 gross profit margin / net profit rate improved significantly, reaching 15.13% to 5.64%. In the first half of the year, the net cash flow of the company's operating activities was-423 million yuan, an increase of 16.36% over the same period last year.
Issue the employee stock ownership plan for Hete Optoelectronics and set up "performance appraisal" requirements to enhance the competitiveness of BIPV. The company issued the 2022 employee stock ownership plan in May 2022. According to the requirements of "performance appraisal" agreed in the stock ownership plan, Hete Optoelectronics plans to invest in the construction of a pilot production line for high efficiency perovskite / crystalline silicon thin film laminated battery in 2022. The pilot production line of 100 MW battery will be officially put into production no later than May 10, 2023, and the battery conversion efficiency will reach more than 28%. And the net profit of special optoelectronics in 2023 / 2024 is not less than 50 million yuan / 10000 yuan. At present, pure perovskite batteries have not completely overcome the problem of excessive efficiency decay, and the company believes that "heterojunction / perovskite lamination" is the best industrial landing technology. Through the advantage of combination, it broadens the absorption spectrum and breaks through the ultimate conversion efficiency of a single cell. Compared with the current progress of the same industry, Hete Optoelectronics has completed the laboratory stage in this technical direction ahead of schedule, and has basically met the technical conditions for the production line to be put into production, which will greatly enhance the company's product competitiveness in the field of BIPV.
Investment advice: newly signed orders to maintain rapid growth, employee stock ownership for BIPV development capacity, maintain overweight rating. It is estimated that the company's net profit from 2022 to 2024 will reach 5.1,5.9 and 690 million yuan respectively, with year-on-year changes of 23%, 18% and 17%, corresponding to PE valuations of 22, 19 and 16 times. The company leads the industry in the layout of steel structure housing, has rich experience in the project, maintains rapid growth in newly signed orders, invests in special optoelectronics, and develops smoothly in the field of BIPV, cultivating the second growth point.
Risk tips: raw material and fuel costs may rise higher than expected; downstream demand is lower than expected; accounts receivable risk; capacity release progress is lower than expected.