Event: on August 29, 2022, the company released its semi-annual report for 2022. In 2022, H1 Company realized revenue of 269 million yuan, + 128.53% compared with the same period last year, and realized net profit of-64 million yuan, expanding the range of losses.
Of this total, Q2 achieved revenue of 172 million yuan, compared with + 59.90% and 77.30% of the total, and realized a net profit of-37 million yuan, with an increase in loss compared with the previous month.
The gross profit margin increased compared with the same period last year, and the decrease in inventory price and the increase in cost led to the expansion of losses. The company's 22-year gross profit margin of H1 was 39.36%, an increase of 8.97 pcts over the same period last year, and the net loss expanded compared with the same period last year. The main reasons are: (1) the fuel cell system has been upgraded, and the company has calculated a 28 million loss in the inventory price of some low-power fuel cell systems; (2) as the business scale continues to grow, the number of employees has increased to 879 from 659 in the same period last year, and labor costs and R & D costs are constantly rising. (3) in 22 years, H1 company calculated the expenses related to the listing of H shares.
New product technology research and development breakthrough, industry market share leading. At the end of 2021, the company released the fuel cell system product with rated power up to 240kW, the system power density reaches 757W/kg, and the R & D capability and technology are leading. According to the semiannual report of the company and the "Road Motor vehicle production Enterprises and products" issued by the Ministry of Industry and Information Technology, by the end of June 2022, a total of 577 hydrogen fuel cell models (excluding chassis) had been announced nationwide, including 93 vehicle announcements equipped with the company's fuel cell system, accounting for 16.12%, ranking in the forefront of the industry.
Model urban agglomeration policy catalysis, Yihuatong as a system integration leader will give priority to benefit. Under the background of carbon neutralization, hydrogen energy and fuel cell industry is one of the important starting points. the cost reduction process of fuel cell is advancing rapidly, and the declaration of urban agglomeration has been finished. according to our statistics, the number of planned fuel cell vehicles has reached nearly 100000 by 2025. However, by June 2022, the number of fuel cell vehicles in China is only about 10,000. In the follow-up, with the acceleration of the policy, the sales of fuel cell vehicles will accelerate, and Yihuatong, as the leader of system integration, will benefit first.
Foreign capital-the leading advantage of industrial recognition companies is prominent, and it is planned to list in Hong Kong to broaden the financing channels. In August, 2021, the company plans to issue 850991 shares to UBS, BAIC New Kinetics, JPMorgan and Morgan Stanley, with a total amount of no more than 200 million yuan. In order to further broaden the financing channels, the company is applying for an initial public offering of overseas listed foreign capital shares (H shares) and listing on the main board of the Stock Exchange of Hong Kong, and related work is being carried out in an orderly manner.
Earnings forecast, valuation and rating: due to the impact of the epidemic and accelerated technological upgrading, the company is expected to achieve a homed net profit of 1.53 billion yuan in 22-24 years (reduced 22 years to negative net profit), and the current share price is-/ 57 PE 32 times. Taking into account the high growth of the industry, the company's strong supporting capacity and market expansion ability, self-produced power stack and large-scale, large-scale profitability, the company, as the first share of Science and Technology Innovation Board fuel cell, is expected to benefit from the high growth of the industry. be optimistic about the company's growth trend and maintain a "buy" rating.
Risk tips: increased competition, lower-than-expected orders, high customer concentration, lower-than-expected payback of accounts receivable.
