Event
The company's 2022H1 realized operating income of 4.623 billion yuan, year-on-year + 166.33%, net profit of 264 million yuan, year-on-year + 155.30%, and non-return net profit of 262 million yuan, + 177.95%.
Among them, Q2 realized operating income of 3.071 billion yuan, + 160.41% year-on-year; net profit of 200 million yuan, + 146.05%; and non-return net profit of 195 million yuan, + 159.56% of the same period last year.
Brief comment
Benefiting from the high economy downstream, the income and profit are growing rapidly.
Lithium power equipment business-driven, revenue and profits rise. 2022H1's operating income and net profit increased by 166.33% and 155.30% respectively compared with the same period last year, of which the proportion of lithium equipment business increased to 95.38% from 92.25% in the same period last year, mainly due to the continued high boom in the downstream new energy vehicle market and strong demand for lithium-ion equipment.
Layout of five major bases, sufficient production capacity to ensure delivery capacity. The company currently has five major production bases located in Huizhou City, Guangdong Province, Dongguan City and Yichun City, Jiangxi Province, with a total construction area of more than 870000 square meters. It is estimated that the annual output value of the company as a whole will exceed 13 billion yuan in 2022, and sufficient production capacity will effectively ensure the delivery capacity and efficiency of the company.
Continue to promote "reducing costs and increasing efficiency", and marginal improvement in profitability
Compared with the same period last year, the gross profit margin is at a low level. 2022H1's gross profit margin and net profit margin are 19.37% and 5.78% respectively, compared with the same period last year-5.16pct and-0.02pct, respectively. 1) most of the orders accepted by 2022H1 Company came from 2020-2021, when the company was in a strategic transition period, and the product structure and customer structure changed greatly, resulting in a decline in gross profit margin. 2) it is continuously affected by the rise in raw material prices and labor costs.
From a month-on-month point of view, Q2 gross profit margin is improved under "reducing cost and increasing efficiency". 2022Q2's gross profit margin and net profit margin are 20.55% and 7.00% respectively, with a month-on-month ratio of + 3.51 and + 3.65pct respectively.
The company has promoted "reducing cost and increasing efficiency" as a leading project this year, and its profitability has been significantly improved by strengthening cost control, implementing digital management, improving turnover and organizational and operational efficiency.
Deep ploughing lithium electrical equipment for 16 years, the achievement of the previous equipment leading company
With the whole line supply capacity, the front section of the domestic leading, the middle and the latter also have a strong competitiveness. The company mainly provides automatic production equipment of lithium-ion battery, which covers the front, middle and later stages of lithium battery production. The company is the first equipment company in the industry to launch a full-line solution for lithium battery. since 2019, the company has shifted its strategic layout focus from "supply line" to "specializing, refining and strengthening stand-alone equipment". At the same time, continue to increase R & D investment to improve product technical barriers to better respond to the needs of customers downstream of the head. Since 2022, the company has continued to expand its lithium product line, based on the front and middle core equipment such as coating machine, winding machine, stacking machine and so on. and on this basis successfully launched the coating roller slitting machine, laser die-cutting and winding machine, laser die-cutting and laminating machine and other products.
The overseas market expansion is smooth, and the company is expected to benefit from the accelerated expansion of overseas lithium power production. Since 2022, the company has received lithium equipment orders from ACC in France and Volkswagen in Germany, and initial results have been achieved in overseas market development. The company has the following advantages in opening up overseas markets: 1) in 2020, the company reached a strategic cooperation with Manz, the shareholding subsidiary of Shanghai Electric, which helps the company to open up the European market in terms of technology and customer resources; 2) the company has a long-term cooperation with Volkswagen's shareholding subsidiary Guoxuan Hi-Tech, thus successfully cutting into Volkswagen's European supply chain. 3) the company and LG New Energy supply winding equipment for the latter for a long time, and the technical strength and major customer endorsement are expected to help the company to further develop the Japanese and Korean markets.
Investment suggestion: the company is absolutely in the leading position in the front section of lithium power equipment, and also has strong competitiveness in the middle and back section. Under the background of overseas power battery expansion faster than domestic production, the company has successfully opened up major customers in the European market. It is estimated that from 2022 to 2024, the company's operating income will be 89.23 yuan, 132.58 yuan and 15.871 billion yuan respectively, which is + 71.55%, + 48.57% and + 19.72% respectively over the same period last year. The company's net profit will be 6.12,11.68 and 1.591 billion yuan, respectively, and + 96.39%, + 90.98% and + 36.19% respectively over the same period last year; and the corresponding PE will be 31.14,16.31,11.97 times respectively, maintaining the "Buy" rating.
Risk analysis.
1) the downstream expansion is not as good as expected; 2) the order profit is lower than expected; 3) the progress of opening up overseas customers is not as expected.
