Revenue in the first three quarters of 2022 increased by 92.15% over the same period last year, and net profit from home increased by 154.70% over the same period last year. In the first three quarters of 2022, the company achieved revenue of 1.28 billion yuan, an increase of 92.15% over the same period last year; net profit of 189 million yuan, an increase of 154.70% over the same period last year; revenue of 621 million yuan in a single quarter, an increase of 124.20% over the same period last year; and net profit of 111 million yuan, an increase of 192.56%. The company's performance growth is mainly due to the steady improvement of traditional cans and lids and the accelerated landing of new energy battery shell business.

The net interest rate increased significantly driven by economies of scale in the first three quarters of 2022. In the first three quarters of 2022, the gross profit margin / net profit rate of the company was 31.70% / 14.20% respectively, year-on-year change-8.48 pct; 3.80 pct sales expense rate / management expense rate / financial expense rate / R & D expense rate was 1.75%, 7.65%, 0.07%, 2.75%, 1.46%, 1.46%, 3.33%, 5.00, 1.65, respectively. 2022Q3's single-quarter gross profit margin / net profit margin is 31.70%, 17.16%,-9.55%, 4.33%, and 7.90%, respectively. We believe that the decline in the company's gross profit margin in the first three quarters of 2022 is mainly due to short-term fluctuations caused by the lower gross margin of orders with recognized revenue in the second quarter, and profitability has improved significantly in the third quarter compared with the previous quarter. Driven by economies of scale, the sharp reduction in expense rates offset the decline in gross profit margin, and the net profit margin maintained a trend of growth.

The business of cans and lids has grown steadily, and the business of new energy battery shells has been accelerated. The company is mainly engaged in the R & D, design, production and other business of production equipment for metal packaging products such as high-speed easy-to-pull covers and cans, with the accumulated R & D achievements and production experience in the field of can production equipment, the company has been extended to the new energy battery shell intelligent production line and battery shell structure manufacturing field. (1) in terms of traditional business, the sales revenue of the company's cans / cover equipment reached 279 million yuan in the first half of 2022, an increase of 102.94% and 71.46% over the same period last year. (2) in the aspect of new energy battery shell, a, 34 series aluminum cylindrical shell: at present, there are two production lines in Hefei base, and the products have been supplied in batch by head battery enterprises, and have been installed and used in passenger cars. Production efficiency is still improving. B, large cylindrical steel shell: the main equipment of the production line is ready and the connection work will be completed soon. After the equipment is connected, a small batch trial production will be carried out in the Xinxiang production base. At present, the single-line production speed is temporarily 200 / min. And continue to climb the slope. C, square battery shell: technical optimization is carried out on the basis of the successful self-developed square battery shell production line, and the production efficiency of the upgraded square battery shell can be several times higher than that of the traditional square battery shell. Changzhou Laisheng base, as the main carrier of square battery shell production, construction is also being accelerated in the third quarter.

Risk hint: technology iterative upgrade risk; battery shell business development is not as expected.

Investment advice: taking into account the steady growth of the company's traditional cans and lid business, and the accelerated landing of the new energy battery shell business in the third quarter, we raise our profit forecast and estimate that the 2022-2024 net profit will be 2.39cm 3.26pm 4.66 million (the previous value is 1.93pm 297max 408), corresponding to the PE 57-41-29 times, maintaining the "buy" rating.