Stable performance and pressure on profitability under the pressure of rising prices of raw materials
The company's 2022H1 realized operating income of 541 million yuan, an increase of 72.57% over the same period last year, and a net profit of 47 million yuan, an increase of 69.23% over the same period last year, exceeding the upper limit of performance forecast. Of this total, 2022Q2 achieved an operating income of 293 million yuan, an increase of 53.7% over the same period last year, an increase of 17.9% over the previous year, and a net profit of 26 million yuan, an increase of 58.2% and 25.5% over the same period last year. In terms of profitability, the company's 2022Q2 gross profit margin was 15.16%, down 1.03% from the previous month, and the net profit rate was 8.94%, up 0.54% from the previous month. Considering that the prosperity of the photovoltaic industry continues to rise, the company, as one of the junction box leaders, will benefit significantly with the continuous release of downstream component customers and the relief of raw material pressure. Therefore, we raised the company's profit forecast to 1.42pm 283pm net profit in 2022-2024 (formerly 1.36pm 282pm 374 million), EPS 2.21pm 4.42pm 6.18 yuan (formerly 2.13pm 4.4x5.85 yuan), and the corresponding pre-share price PE was 50.0ppm 25.0pm 17.9 times, maintaining the "buy" rating.
The profit of the main business is under short-term pressure, and the reversal can be expected.
2022H1's photovoltaic junction box business achieved an operating income of 430 million yuan, an increase of 81.9% over the same period last year, with a gross profit margin of 15.98%, down 4.8% from the same period last year. The company's photovoltaic connector business achieved an operating income of 102 million yuan, an increase of 46.1% over the same period last year, and a gross profit margin of 14.41%, down 0.1% from the same period last year. Because of the magnificent demeanor of the photovoltaic industry, the company's main business income has increased significantly compared with the same period last year. On the cost side, the relative shortage of main raw material diodes and chips has a great impact on the profitability of the company's photovoltaic junction box business. With the relative relief of the bottleneck in the chip supply chain and the decline in the prices of copper and plastics, the company's profitability is expected to reverse in 2022H2.
The ability of cost control is excellent, and the volume of major customers can be expected.
The main customers downstream of the company include domestic mainstream component enterprises such as Jing O Technology, Trina Solar Energy, Ates and Oriental Sunrise, as well as Tongwei shares, a new army of component links such as new energy, as auxiliary materials enterprises with which Tongwei shares have established a long-term partner, it is expected to benefit significantly from the large mass layout of Tongwei shares in the component link. In terms of the period expense rate, the company's 2022Q1 expense rate was 5.6%. During the single quarter, the expense rate was 4.2%, a month-on-month decrease of 1.4%, of which the financial expense rate was-1.02%. The main reason was that the company received an exchange benefit of 2.92 million yuan.
Risk hint: the volume of major customers is lower than expected, and the price of raw materials is higher than expected.