The company released its quarterly report for 2022, showing a month-on-month increase in Q3 gross profit margin and net profit margin. In 2022, Q1-Q3 achieved revenue of 1.2 billion yuan, + 23.8% year-on-year, net profit of 321 million yuan, + 81.9% year-on-year, and basic earnings per share of 1.09 yuan per share. In a single quarter, 22Q3 achieved revenue of 381 million yuan, + 5.79% year-on-year, and net profit of 112 million yuan, + 69.7% compared with the same period last year.
22Q3 gross profit margin and net profit margin are 37.8% and 29.5% respectively, 2 pct.1.4 pct higher than Q2, benefiting from the decline in raw material prices, the company's profitability improved, Puyang headquarters capacity expansion of 20, 000 tons of production, acid crisp derivatives industry leading position pragmatic. According to the 2021 annual report, the company has a production capacity of 51000 tons of crisp derivatives. According to the third quarterly report of 22Q3, the company's Puyang headquarters has been put into production of 20, 000 tons of methyl tetrahydrogen. As of the third quarterly report, the sour crisp derivative production capacity of the company has reached 71000 tons. at the same time, the 50, 000-ton production expansion of Fujian Guli project has been carried out as scheduled, and it is expected to be put into trial operation in the second half of 23 years. The leading position of the industry is more pragmatic, and the downstream demand is "wind" and "electricity" switch. Profitability is expected to remain high. According to Guangfa Machinery statistics, as of October 15 this year, the public bidding volume of wind power in the domestic market has reached 68.2GW, and we expect that 2023 may be the year of wind turbine installation, with the rapid infiltration of pultrusion process in wind power blades, the company's sour crisp products are expected to be the first to benefit from wind power installed capacity; the company's downstream power grid industry investment growth is expected to maintain a stable acceleration during the 14th five-year Plan period. The capacity utilization rate of the company's sour crisp derivatives remains high, reaching 111% and 125% in 2020 and 2021 respectively, and will continue to maintain overload production in 2022, and we expect the company's profitability to remain high.
Profit forecast and investment advice. Taking into account the capacity release of the company and the incremental demand for downstream power grid and wind power in the next three years, we estimate that the company's EPS in 22-24 will be 1.48,1.88,2.14 yuan per share respectively, with a valuation of 28 times PE in 2023 and a "buy" rating corresponding to a reasonable value of 52.64 yuan per share.
Risk hint. The progress of production capacity is not as expected, the downstream demand is lower than expected, the product price is lower than expected, and the competition on the supply side of the industry is intensified.