Main points of investment
In the first half of 2022, the company achieved operating income of 1.542 billion yuan, an increase of 25.19% over the same period last year, and net profit of 350 million yuan, an increase of 13.22% over the same period last year. In the second quarter of 2022, the company achieved a total revenue of 780 million yuan, an increase of 10.72% over the same period last year, an increase of 2.44% over the previous year, and a net profit of 171 million yuan, an increase of 7.30% over the same period last year, down 4.87% from the previous month.
The growth of motors for traditional electric vehicles leads to a high increase in income, and the gross profit margin is affected by the adjustment of product structure. The income growth in the first half of 2022 is mainly affected by the rapid growth of traditional electric vehicle motor business. In the first half of 2022, the company's overall gross profit margin was 33.56%, of which the gross profit margin in the second quarter was 31.42%, down 2.89% from the same period last year and 4.33% from the previous year, mainly due to the volume of traditional electric bicycle motors, but its gross profit margin was lower than that of electric bicycle motors. as a result, the company's overall gross profit margin fell. In the first half of 2022, the company's R & D expenditure rate reached 2.7%, up 0.72% from the same period last year, and the absolute value of R & D expenses increased by 70.54% compared with the same period last year, mainly due to the increase in the salaries of electric and motorcycle-related project development and R & D personnel. In the first half of 2022, the company achieved a net interest rate of 22.72%, compared with 21.89% in the second quarter.
With the continuous improvement of the brand power of the rapid iteration of the products, the global market share of electric bikes is expected to increase by more than 5 million electric bikes in Europe in 2021, and the penetration rate will increase to 23%. Inflation and the war between Russia and Ukraine have restrained the increase in demand in the short term, increased awareness of environmental protection & with the support of policy guidance, the long-term European electric bicycle market is vast. In 2022, the company successively launched new mid-set motor products such as M510 and M820, comprehensively optimizing product performance such as weight, shock resistance and sensitivity, supporting high profits of electric bicycle motors. In addition, the company organizes overseas touring exhibitions, sponsoring bicycle teams and other sports events at home and abroad, constantly improving "bafang" word-of-mouth and strengthening brand image, relying on the continuous improvement of product types and brand awareness of many kinds and small batches. The company's overseas market share is expected to increase.
The domestic traditional electric vehicle market is booming in 2022, and the production expansion + building brands return to the domestic market. In 2022, the transition period of the "new national standard" of various provinces and cities expires one after another, and the demand for the replacement of stock electric two-wheeled vehicles that do not meet the new national standard increases. Since March, the spring tide of purchase has started one after another, and it is expected that the exchange will still be an important driving force for the development of the electric vehicle industry in the second half of the year, and the domestic traditional electric vehicle market remains prosperous. According to the company announcement, in the future, the company will allocate an additional 3.3 million sets of production capacity in Tianjin to meet the needs of North China, and raise 1.2 million traditional motors (including electric light motorcycle) in Suzhou to match customers in East China, with a total production capacity of 6.3 million units per year. the company will seize the industry opportunities brought about by the "new national standard" and return to the domestic market to create a new growth curve.
Profit forecast and valuation
The company is the leader of electric bicycle motor in the world, returning to the domestic traditional motor market. We estimate that the 22-24 year return net profit of the company is 7.77,11.10 and 1.407 billion yuan, corresponding to the corresponding EPS of 6.46,9.23,11.70 yuan per share, and the corresponding PE is 19,13,10 times. Give a "buy" rating.
Risk hint
The risk of the change of international trade environment, the lower than expected production capacity, the intensification of market competition, the risk of exchange rate fluctuation and the risk of raw material price fluctuation.