Core viewpoints
Event: on October 24, 2022, the company released the "third quarter report of 2022". In the first three quarters, the company achieved 2.92 billion yuan in revenue, an increase of 1.15% over the same period last year, and a net profit of 169 million yuan, down 36.3% from the same period last year. The net profit after deducting non-return was 162 million yuan, down 31.31% from the same period last year.
The epidemic affected sea breeze and environmental protection business, and revenue and profits declined. The company realized income of 1.239 billion yuan in the third quarter, up 24.3% from the same period last year, realized net profit of 46 million yuan, down 17.63% from the same period last year, and deducted 47 million yuan from the same period last year, down 9.36% from the same period last year. In the third quarter, the company's gross profit margin was 19.59%, and the net profit rate was 4.09%, down 3.23pct and 2.08pct respectively from the same period last year, and 2.33pct and 5.75pct from the previous year. The decline in revenue is mainly due to the fact that the installed capacity of sea breeze is greatly affected by the epidemic, and the decline in the profitability of the company is mainly due to the sharp decline in the profit margin of the environmental protection business, due to the low prosperity of the industry, low-price competition and other phenomena in the industry, and the price level is low. At the end of the third quarter, the company's contract liabilities were 3.31 billion yuan, an increase of 230.14% over the same period last year, mainly due to a substantial increase in the company's orders. The company's projects under construction in the third quarter were 84 million yuan, an increase of 45 million yuan over the same period last year. The net cash flow generated by the company's operating activities in the first three quarters was 1.77 billion yuan, mainly due to the increase in advance receipts for orders received in the first three quarters.
The long-term growth of sea breeze business is still certain. The company is one of the main manufacturers of wind power foundation piles in China, and has rich experience and good reputation in the field of foundation pile manufacturing. The epidemic situation had a great impact on the installation of sea breeze in the first half of the year, the company's foundation pile products declined significantly compared with last year, the installed capacity of the industry rebounded in the third quarter, and the company's sea breeze business will increase significantly in the second half of the year. Offshore wind power is the main market segment for future wind power development. Coastal cities have launched the 14th five-year Plan. On October 20, 2022, the people's Government of Chaozhou City, Guangdong Province, issued the 14th five-year Plan for Energy Development of Chaozhou. According to the Plan, two offshore wind power sites are planned in the sea area outside the territorial line of Chaozhou to the south, and the total planning capacity is 43.3GW. At present, a total of 16 cities in Guangdong plan to increase the installed capacity of wind power for 20.9GW, which shows that the development of offshore wind power is highly deterministic.
The demand for supporting ships is strong, and the orders for material handling business are sufficient. The company is a leading domestic hatch cover enterprise, with an increase of 281.98% in the first half of the year compared with the same period last year. At present, the prosperity of the shipbuilding industry is relatively high, and the company's ship supporting business will usher in a better opportunity for development. Material handling business is the company's core business, with "Gemma" and "Koch" brands, and has a strong influence at home and abroad. In the first half of 2022, it received an additional contract order of nearly 6.6 billion yuan for bulk equipment from customers in the United Arab Emirates, with more than 10 billion orders on hand and will continue to be delivered in the future.
Environmental protection business is affected by the economic environment, and short-term profits are damaged. The company's environmental protection business is mainly related to hazardous waste and medical waste treatment and disposal services, sludge treatment and disposal services and other fields. Due to the poor domestic macroeconomic environment, the downstream demand of the company's environmental protection business has declined significantly, profitability has dropped significantly, and operating profit has also declined significantly, but the profitability of the company's environmental protection business will recover quickly with the improvement of demand.
Investment suggestion: 002483.SZ is the core manufacturer of wind power foundation piles in China. At the same time, material handling and hatch cover business also have strong competitiveness in the industry. The company is expected to achieve a net profit of 2.6pm in 2022-2024, corresponding to the PE of 23-14-12.
Risk hints: wind power installation is lower than expected; delivery of material handling business is lower than expected; prosperity of shipbuilding industry is declining