On the evening of August 19, the company announced that the revenue in the first half of 2022 was 510 million yuan,-16.6% compared with the same period last year, and the net profit was 77 million yuan, 25.4% compared with the same period last year. Of this total, revenue in the second quarter of 2022 was 299 million yuan,-27.2% year-on-year, and net profit was 51 million yuan,-19.1%, compared with the same period last year. Under the influence of adverse factors such as repeated COVID-19 epidemic in some areas, the company's performance is relatively sound, and its revenue and return net profit have improved month-on-month, which is in line with market expectations. The company is one of the few independent development enterprises in China that can cover the whole vehicle development industry chain and have the ability to independently develop the whole vehicle platform. the R & D business and parts manufacturing business are growing rapidly and are expected to continue to benefit from the volume of new electric intelligent brands and new models. Taking into account the dilution effect brought about by the conversion of capital reserves to equity, we adjust the company's annual EPS forecast for 2022-23-24 to 0.51 prime 0.69 max 0.91 yuan, give the company a valuation of 2023 30xPE, corresponding to the target price of 21 yuan, and maintain the "buy" rating.
The performance is in line with expectations, and the new business continues to advance. On the evening of August 19, the company announced that the revenue in the first half of 2022 was 510 million yuan,-16.6% compared with the same period last year, and the net profit was 77 million yuan, 25.4% compared with the same period last year.
Of this total, revenue in the second quarter of 2022 was 299 million yuan,-27.2% year-on-year, + 41.3% month-on-month, and net profit was 51 million yuan,-19.1% year-on-year, and + 97.2% month-on-month. In the first half of 2022, the COVID-19 epidemic in some parts of the country was repeated, and the production and marketing of the automobile industry was under pressure. although the company's delivery of projects in hand and the signing of new projects were affected, its performance remained relatively sound, and its revenue and net profit improved in the first quarter compared with the previous quarter, in line with market expectations. Considering the abundant orders on hand and the active layout of skateboard chassis, commercial vehicle platform, all-in-one powertrain and new energy intelligent platform, we believe that the company's performance is expected to recover gradually in the second half of the year.
Gross profit margin declined month-on-month, and investment in research and development continued to rise. 2Q22's gross profit margin is 35.4%, year-on-year + 0.9pct, month-on-month-4.1pcts, mainly due to rising raw material prices and freight charges. The expense rate is 13.5%, year-on-year-0.1pct, month-on-year-17.2pcts, in which sales expense rate is 2.9%, year-on-year + 0.4 pct; management expense rate is 8.2%, year-on-year + 3.6 pcts; R & D expense rate is 0.9%, year-on-year-5.4 pcts; financial expense rate is 1.5%, year-on-year + 1.3pcts, mainly due to an increase in interest charges over the same period last year. Although the company's R & D expenditure rate dropped sharply compared with the same period last year, according to the company announcement, the company's R & D investment reached 80.52 million yuan in the first half of 2022, + 31.0% compared with the same period last year. The company continues to make large R & D investment in the business of new energy vehicles and spare parts, accumulate forward-looking technology in advance, and its competitive advantage has been further consolidated.
The R & D business is full of orders on hand, and the products continue to break through. The trend of electrification and intelligence in the automobile industry is clear, and new brands and new models of electric intelligence downstream are constantly launched. Related models have higher requirements for design and development, and we believe that companies with full-chain design and R & D capabilities are more likely to enjoy industry dividends and expand market share.
The company is the domestic full-chain automobile design leader, as of June 2022, the company's stock of R & D business orders reached 2.102 billion yuan, abundant on-hand orders. In terms of vehicle platform, the company's light commercial vehicle platform has entered the engineering sample vehicle verification stage, the integrated pure electric power system platform has entered the prototype software calibration and performance testing stage, and the commercialization and marketization of skateboard chassis are also advancing. On the other hand, based on the deep accumulation of electronic and electrical architecture, the company launched the self-developed SOA developer platform in August to provide mainframe factories with more perfect full-stack solutions. The company's domain controller research and development and other projects also continue to break through.
On the whole, the company is able to provide vehicle research and development "turnkey" services for the whole vehicle factory, which is expected to continue to benefit from the outbreak of demand in the industry.
Spare parts products have been mass-produced, and the business is progressing smoothly. The company's first-generation V6 engine has been mass-produced with BAIC BJ80, and the follow-up is expected to be carried in the special model of this car. The company's second-generation V6 engine was successfully ignited in May and is currently in the calibration stage for potential customers. The product is expected to be used in large and medium-sized high-end off-road vehicles, high-end full-size pickups, high-end China bus and the matching hybrid market, with a broad market space. The company's DHT gearbox assembly has been mass produced and began to supply SAIC GM Wuling in July.
The company's new energy vehicle reducer is expected to expand customers such as Continental Group while supporting Guangzhou Automobile Honda and Dongfeng Honda stably. We believe that with the continuous promotion of domestic resumption of work and production, the gradual relief of the high price of raw materials and the marginal improvement of the lack of core in the industry, the revenue of the company's spare parts manufacturing business is expected to continue to benefit from the growth of vehicle sales of downstream customers.
Risk factors: core customer business risk; customer new model launch speed is not as expected; parts industrialization landing speed is not as expected; the company's non-public offering and fund-raising project construction progress is not as expected.
Investment suggestion: the company is one of the few independent development enterprises in China that can cover the whole vehicle development industry chain and have the ability to independently develop the whole vehicle platform. the R & D business and parts manufacturing business are growing rapidly. It is expected to continue to benefit from the launch of a large number of new brands and new models of electric intelligence. Taking into account the dilution effect brought by the conversion of capital reserves to equity, we adjust the company's annual EPS forecast of 2022-23-24 to 0.51 prime 0.69 prime 0.91 yuan. The company is the leader of the domestic scarce automobile design business, the parts business customers expand smoothly, and the growth space is opened. We give the company a 2023 30xPE valuation and maintain a "buy" rating corresponding to the target price of 21 yuan.
