Event: on the afternoon of August 24, 2022, the company released its semi-annual report on 2022. 2022H1 achieved operating income of 133 million yuan (year-on-year-8.92%), net profit belonging to the parent company of 21 million yuan (year-on-year + 36.73%), non-return net profit of 17 million yuan (year-on-year + 28.45%), and basic earnings per share of 0.18 yuan per share.
The growth rate of net profit has reversed, and the end of the business adjustment period is under temporary pressure. The company's 22H1 realized net profit of 21 million yuan, + 36.73% compared with the same period last year, deducting non-return net profit of 17 million yuan, + 28.45% year-on-year, sales gross profit of 37.23%, year-on-year + 7.08pct. The reason for the increase in profit over the same period last year is that the company's capacity utilization has improved, and second, with the continuous enhancement of the company's R & D strength, the R & D cycle is shorter than before, and the ability to undertake new products continues to improve. The total revenue of 22H1 is 133 million yuan,-8.92% compared with the same period last year, which is mainly caused by the adjustment of the business scale of Baifuqi, a holding subsidiary. The rate of expenses during the period is 19.79%, year-on-year + 0.39pct, sales expenses 3.5274 million yuan, year-on-year-23.14%; management expenses 13.6403 million yuan, year-on-year + 7.09%; financial expenses-119200 yuan, year-on-year-108.17%; research and development expenses 9.1975 million yuan, year-on-year-2.79%, mainly because the company is affected by the epidemic, some new R & D equipment can not enter the factory, resulting in the corresponding R & D projects can not be carried out as planned.
The company's capacity utilization rate has improved, and the growth of inventory is the support of the performance. 22H1 company's fixed assets are 257 million yuan, projects under construction are 155900 yuan, and projects / fixed assets under construction are 0.06%, year-on-year-0.02pct, mainly due to the completion of projects under construction. Inventory 56 million yuan, + 6.44% compared with the same period last year, mainly due to the increase in the number of goods sent by customers for processing, and the increase in inventory provides support for future revenue.
The company completed the acquisition of Zhengfei machinery pre-negotiation work, the acquisition of part of the shares, helping to further enhance the company's comprehensive strength. By the end of the report period, the company completed the preliminary negotiations for the acquisition of Zhengfei Machinery. Zheng Fei Machinery's main products are aircraft suspension system parts and assembly services. The company plans to invest about 50 million yuan in the first phase, mainly for equipment transformation, and plans to land the project from October to November this year, complete commissioning in December, and start mass production next year.
Profit forecast and investment rating. We estimate that the EPS of the company will be 0.64 / 0.94 / 1.28 yuan per share from 2022 to 2024. We use PE valuation method to give the company 40-45 times PE in 2022, and we think that the corresponding reasonable value range is 25.60-28.80 yuan, which is rated as "better than the big market".
Risk hint. Changes in macroeconomic and industrial policies; intensified market competition.
Compliance tip: as of September 1, 2022, Haitong held Maixinlin (688685) to reach more than 1% of its issued shares (1398333 shares of alternative subsidiaries, accounting for 1.25% of the total equity, with a lock-up period of May 12, 2023). At the same time, investors are reminded to pay attention to the potential risk of conflict of interest in the publication of the securities research report.