Core ideas:
22H1 performance maintained high growth, overseas revenue increased significantly. According to the company's semi-annual report for 2022, 22H1 achieved an operating income of 7.632 billion yuan, an increase of 53.1% over the same period last year, and a net profit of 906 million yuan, an increase of 11.7% over the same period last year. The internationalization strategy has achieved remarkable results, and overseas revenue has increased by 121.9%. 22Q2 achieved an operating income of 3.517 billion yuan, an increase of 36.7% over the same period last year, and a net profit of 462 million yuan, down 2.3% from the same period last year.
The high prosperity of the coal machinery industry has led to the recovery of the company's mine equipment business. In our country, the efforts to ensure coal supply and increase production have been intensified, and the high prosperity of coal machinery and equipment has been sustained. New coal machine demand growth superimposed old equipment upgrade and replacement cycle, the company's mine equipment business ushered in a recovery. In 21 years, the company's main mine equipment business achieved business income of 6.896 billion yuan, an increase of 42.3% over the same period last year. Smart mine business benefits from the trend of coal mine intelligence, the company's electro-hydraulic control new orders increase, intelligent fully mechanized mining complete sets of equipment to complete a number of customers underground mining.
New business continues to grow, and the effect of digitalization + internationalization strategy is remarkable. (1) the 22H1 robot segment achieved 553 million yuan in revenue, an increase of 36.9% over the same period last year. System integration and storage achieved breakthroughs in photovoltaic, chemical, battery disassembly and discrete manufacturing industries. (2) the international sales revenue of mining equipment and logistics equipment increased by 130.9% and 113.6% respectively, and the domestic export market share of wide-body vehicles ranked first.
Continue to pay attention to the upstream Gaojing demeanor to drive the continuous growth of the company's orders. (1) the upstream bulk price increase and the superimposed intelligent penetration rate jointly promote the upward trend of capital expenditure and company orders. (2) Logistics equipment & robot business benefits from the transformation of intelligent logistics and intelligent manufacturing, and the demand for equipment increases.
22H1's gross profit margin decreased by 23.8% compared with the same period last year, mainly due to (1) an increase in the proportion of sales of products with slightly lower gross profit margin, and (2) an increase in international freight prices. In the long run, the continuous improvement of the market share of the company's products, the strong competitiveness of new products and the improvement of production efficiency will enhance the center of long-term gross profit margin.
Profit forecast and investment advice. It is estimated that the company's EPS for 22-24 will be 0.55 PE 0.79 per share. With reference to the comparable company valuation and considering the company's better fundamentals, the company will be given a reasonable valuation of 15x max in 2022, corresponding to a reasonable value of HK $9.25 per share, maintaining a "buy" rating.
Risk hint: upstream boom downside risk, maritime freight sharply upward, exchange rate fluctuations.