Description of the event
On October 25, 2022, the company released its report for the third quarter of 2022. The company achieved revenue of 5.099 billion yuan in the first three quarters, an increase of 10.47% over the previous year, and achieved net profit of 509 million yuan to the mother, an increase of 8.10% over the previous year.
Achieving steady growth in operations
The company achieved revenue of 5.099 billion yuan in the first three quarters, an increase of 10.47% over the previous year, and achieved net profit of 509 million yuan, an increase of 8.10% over the previous year. The net cash flow from operating activities increased 163.07% year-on-year, due to the increase in cash received from the company's sales products in the first three quarters of this year.
The physical and chemical experimental building, one of Baotai's financing projects, was completed
According to the September 23 news on the company's official website, on September 22, Baotai Co., Ltd. held the completion ceremony of the physical and chemical laboratory building and project commissioning in the square in front of the new physical and chemical laboratory building.
The new physical and chemical laboratory building covers an area of 1,058 square meters, with a total construction area of 4,942 square meters. It has a reinforced concrete frame structure with five floors above ground and four floors in part. The project broke ground on October 1, 2021. Under the correct leadership of the company, the project team and participating units made concerted efforts to overcome adverse factors such as repeated epidemics and accelerate construction engineering design and implementation, equipment bidding and procurement, installation and commissioning, and supporting public and auxiliary facilities. Up to now, more than 100 units (sets) of equipment and facilities have been installed, commissioned and put into use. The completion and commissioning of the physical and chemical laboratory building effectively solved the problem of insufficient inspection sites, improved the testing capacity and inspection level of products, and will surely have a positive and profound impact on the company's next stage of development strategy and brand promotion.
Investment advice
The company's net profit from 2022-2024 is expected to be 704, 927 and 1,198 million yuan respectively, with year-on-year growth rates of 25.7%, 31.7% and 29.2%. The corresponding PE was 29.31, 22.26, and 17.23 times, respectively. Maintain a “buy” rating.
Risk warning
Industry demand fell short of expectations, fund-raising and construction progress fell short of expectations, and industry competition intensified.