The revenue structure has been greatly improved, and the proportion of new energy has further increased. The company released its three-quarter report for 2022, with revenue of 2.797 billion yuan in the first three quarters, + 38.91% year-on-year. The net profit belonging to shareholders of listed companies was 1.12 million yuan, down 99.2% from the same period last year, deducting non-return net profit of-37.76 million yuan, down 592.04% from the same period last year. The cash flow of business activities is 328 million yuan,-407.9% compared with the same period last year.
The revenue in the third quarter was 1.075 billion yuan, + 33.24% compared with the same period last year, and the net profit in the third quarter was 37.94 million yuan, which was-46.57% last year. The performance was in line with market expectations.
The gross profit margin rose further in the third quarter, and the company ushered in a profit inflection point. The company's gross profit margin was 14.76% in the first three quarters and 17.66% in the third quarter, an increase in 3.9pct and 3.87pct compared with the same period last year.
The net interest rate in the third quarter was 3.6%, which improved 6pct on a month-on-month basis, and the company's performance ushered in an inflection point. In the first three quarters, the sales expense rate was 3.31%, the year-on-year increase of 0.08pct, the management expense rate of 7.3%, the year-on-year reduction of 0.83pct, the financial expense rate of-0.2%, and the decrease of 0.99pct.
Production capacity release products for mass production and delivery, the proportion of new energy business further increased. In terms of the revenue composition of the company in the first three quarters, consumer electronics revenue accounted for 30%, communications revenue accounted for 32%, new energy revenue accounted for 28%, and other types of income accounted for 10%. With the gradual mass production of the company's designated new energy projects and the continuous development of new customers and new projects, the revenue of the new energy business increased by 205.19% in the first three quarters compared with the same period last year. The company's liquid-cooled plate, composite cover plate, connecting plate, integrated die casting, thermal conductive glue and other products have been mass delivered to head new energy vehicles and battery manufacturers. Radiators, integrated die castings, heat pipes, conductive silica gel and other products have been delivered to photovoltaic and energy storage customers. With the further release of the capacity of the fund-raising project, the company's revenue and profitability will continue to grow.
The gross profit margin of communication products is expected to increase. In the first three quarters, the operating revenue in the communications sector increased by 36.72% compared with the same period last year, and the revenue growth was mainly due to the 700MHz project, the winning customer of the company in the first half of 2021. With the improvement in raw materials, epidemic situation and labor costs, while the company wins bids for other communications projects and continues to reduce costs and increase efficiency, gross profit margins in the communications sector are expected to continue to rise, helping to boost the company's performance. The lower-than-expected growth in consumer electronics revenue lies at the core of the continued decline in downstream mobile phone and computer shipments, partly due to an increase in the share of cooling products.
Investment suggestion We estimate that the 2022-2024 return net profit of the company is 0.36x2x448 million yuan, EPS is 0.07plus 0.40max 0.88 yuan, corresponding to 2022-2024 PE is 264X/46.2X/21X respectively.
Maintain the recommended rating.
The risk suggests that downstream consumer electronics demand is lower than expected, the release of new energy capacity is not as expected, and the gross margin and net profit margin are not as good as expected.