Event: when the company released its annual report for 22 years, 22H1's income was 6.696 billion yuan, + 26.65% compared with the same period last year; the net profit returned to its mother was 312 million yuan, + 25.44% compared with the same period last year; and the gross profit margin was 33.86%, year-on-year + 0.85pcts. 22Q2 income 3.745 billion yuan, year-on-year + 11.22%; return to the mother net profit of 194 million yuan, year-on-year-7.17%; gross profit 33.58%, year-on-year + 0.69pcts.
The business of network equipment is stable, and the revenue of communication products is growing rapidly. The overall income of 22H1 Company has increased steadily. From a business point of view, the income of 22H1 enterprise-class network equipment is 4.066 billion yuan, + 25.25% compared with the same period last year; the revenue from communication products is 1.189 billion yuan, + 59.49% over the same period last year, mainly due to the acceleration of the "double gigabit" network construction of the state and the three major operators, and the increase in product collection demand. The income of the network terminal was 353 million yuan,-29.85% compared with the same period last year, mainly due to the recurrence of the epidemic in the first half of the year and the postponement of customer demand or bidding in some industries.
Gross profit margin remained stable and financial costs were significantly reduced. In terms of gross profit margin, 22H1's comprehensive gross profit margin is 33.86%, which is + 0.85 pcts compared with the same period last year; in terms of expenses, 22H1's sales / management / financial expenses are + 12.88%, 40.75% and 310.55%, respectively, compared with the same period last year. Among them, the growth of management expenses is due to the steady growth of the company, and the sharp reduction in financial expenses is due to the exchange earnings caused by the rise in the exchange rate of US dollars against RMB and the reduction of interest income on bank deposits in the current period.
Continuous R & D investment and steady improvement of innovation ability. 22H1 invested 928 million yuan in R & D, + 37.58% year-on-year, and the company continued to increase R & D investment. 22H1 applied for a total of 107 patents, including invention / design / practical patents in 76-6-25, with a total of 3902 patents. The company adheres to the innovation-driven development strategy, continues to enhance the technological leading edge, and steadily improves the competitiveness of the product market.
Profit forecast. We estimate that the company's income from 2022 to 2024 will be 18.892 billion yuan, 25.15 billion yuan and 31.72 billion yuan respectively, and the net profit will be 807 million yuan, 1.189 billion yuan and 1.591 billion yuan respectively, and the corresponding EPS will be 1.38yuan, 2.04yuan and 2.73yuan respectively. Refer to comparable companies, give 2022 PE range 20-25 times, corresponding reasonable value range 27.60-34.50 yuan, "better than the big city" rating.
Risk hint. Technical risk; market demand is lower than expected; product competition aggravates the risk.