2022Q2, with the help of automotive electronics and new display business, the company's net profit reached a new high in a single quarter, and its profitability improved significantly. 2022H2 is expected to usher in a profit inflection point and maintain its buy rating.
Support the main points of rating
Get rid of the haze of the epidemic and welcome the rebound, the net profit of 2022Q2 has reached an all-time high. From January to June 2022, the company achieved operating income of 716 million yuan, down 11.60% from the same period last year, and realized net profit of 30 million yuan, down 31.26% from the same period last year, of which the company included equity incentive fees of about 17 million yuan and income tax concessions of about 9 million yuan. 2022Q2, the company achieved an operating income of 441 million yuan, an increase of 60.72% over the previous month, and a net profit of 44 million yuan, an increase of 51.72% over the same period last year. Although the company's performance declined in the first half of the year compared with the same period last year, after getting rid of the impact of the epidemic, 2022Q2's home net profit increased significantly compared with the same period last year and month-on-month, and its profitability was significantly improved.
With the rapid growth of automotive electronics business, the company is expected to usher in a profit inflection point. 2022H1, the company's automotive electronics business increased by 79.05% compared with the same period last year, achieving rapid growth. 2022Q2, the rapid development of the company's vehicle business, millimeter wave radar, AR-HUD, in-car projection and other products have been the fixed point of the whole vehicle factory. As the company's car accessories will be gradually installed in the second half of the year, and we expect that the follow-up company's other on-board optoelectronic products are expected to be introduced into the whole vehicle factory along with the core product millimeter wave radar, it is expected that the vehicle business revenue will at least double in 2022, and the company's profit inflection point has already appeared.
The new display business ushered in the outbreak, the potential for business growth should not be underestimated. 2022H1, the company's laser projection business revenue increased by 289.68% compared with the same period last year. The revenue of the company's laser projection VR business increased by 93.38% over the same period last year, with sales exceeding 40,000 units. The company's new display business has ushered in a period of explosive growth. The outbreak of the new display business benefits from the company's deep technical reserves and good customer resources in the industry. in the future, the company's new display business revenue is expected to increase with the high prosperity market.
Valuation
Under the current equity, we expect the company to achieve earnings per share of 0.39 yuan / 0.73 yuan / 1.35 yuan in 2022-2024, corresponding to a price-to-earnings ratio of 51.6x / 27.6x / 14.8x, maintaining the buy rating.
Main risks faced by rating
Epidemic factors affect consumer demand; the penetration rate of automobile intelligence is lower than expected; the development trend of high definition and coking in security market is not as expected.
