The revenue structure has been greatly improved, and the share of new energy has further increased. The company released its 2022 semi-annual report. It achieved revenue of 1.72 billion yuan in the first half of the year, +42.69% year on year, and net profit attributable to shareholders of listed companies -368.251 million yuan, a decrease of 151.43% over the same period last year. Cash flow from operating activities was 208 million yuan, +1001% year on year. The performance is in line with market expectations. Looking at the company's revenue structure, consumer electronics accounts for 32%, communications accounts for 30%, new energy accounts for 22%, and home appliances and others account for 16%. The new energy business increased 229% year over year, further increasing its share of total revenue.
The gross margin inflection point has arrived, and the company's profit is expected to bottom out and recover. The first half of the year was affected by factors such as the epidemic and inflation, which led to a decline in consumer electronics shipments. The year-on-year increase in the company's revenue was mainly due to increased customer share and mass production of new customers and new projects. However, due to the rise in upstream materials, the impact of the epidemic on production capacity led to some impact on order delivery, and labor and depreciation costs in the Jiangsu Park increased 92 million over the same period last year. At the same time, expenses related to the company's equity incentives in the first half of the year were 26.59 million, which affected the company's profits to a certain extent. The company's gross profit margin for the second quarter alone was 13.76%, an increase of 1.85 percentage points over the previous quarter. With the rapid growth of the company's new energy business and the recovery of consumer electronics products, the company's profitability is expected to bottom out.
Continuously enrich the product ecosystem around the core of the “electromagnetic” and “thermal” industries. The company continuously enriches the product ecosystem around the core of the “electromagnetic” and “thermal” industries, enhances industrial chain integration capabilities, and provides system solutions. The company's new energy products mainly include composite covers, connectors, liquid cold plates, thermal conductive materials, etc. for power batteries. Photovoltaic inverters mainly include die-castings, radiators, conductive materials, precision structural parts, etc. In the field of energy storage, products are mainly die-castings, heat dissipation components, composite panels, thermally conductive materials, etc. The explosion of new energy sources and demand for materials and devices is expected to become a new growth point for the company.
The gross margin inflection point has been reached, and the company's new energy business continues to grow at a high rate. The company's gross margin in the second quarter showed a steady upward trend. The growth rate of the new energy business was impressive, and cash flow continued to improve. With the high growth of the company's new energy business and the improvement of traditional consumer and communications businesses, the company's performance is expected to return to growth.
The investment advice company is a leader in electromagnetic shielding and heat-conducting materials. With the continuous increase in the share of the new energy business and the release of production capacity, gross margin is expected to continue to improve, and the company will usher in new performance growth points. We expect the company's EPS for 2022-2024 to be 0.07/0.40/0.88 yuan, which corresponds to the 2022-2024 PE of 249X/44.7X/20.01X, respectively. First time rating, give a “recommended” rating.
Risks suggest that downstream consumer electronics demand fell short of expectations, renewable energy revenue fell short of expectations, and improvements in gross margin and net interest rates fell short of expectations.