22Q3's homing net profit is + 134% compared with the same period last year, maintaining the buy rating
The company's 22Q1-3 net profit is 616 million yuan, year-on-year + 200% 22Q3 net profit is 211 million yuan, year-on-year + 134%, deducting non-parent net profit 215 million yuan, year-on-year + 144%. Non-recurrent profit and loss is mainly fair value change profit or loss resulting from holding transactional financial assets; the company provides for 32 million yuan asset impairment loss in a single quarter, which also affects performance. According to the latest rare earth price, we slightly lower the rare earth price assumption for 23-24 years, and forecast the company's 22-24 net return profit of 8.35 yuan 12.28 / 1.692 billion yuan (the previous value is 1.193 billion yuan). The comparable company Wind unanimously expected the average PE (22e) to be 20.2X. Considering that the compound growth rate of the company's expected earnings in 22-24 years was higher than the average profit growth rate of the comparable company, it gave the company a 22-year 23XPE with a target price of 15.87 yuan (the previous price was 20.40 yuan) to maintain the buy rating.
Promotion in many aspects, the company's homing net profit in the first three quarters increased greatly compared with the same period last year, according to the performance forecast, the company's homing net profit increased greatly in the first three quarters compared with the same period last year, mainly due to the increase in product prices compared with the same period last year; the company strengthened the centralized procurement of raw materials to show the advantage of cost control; the depreciation of RMB increased the company's exchange earnings.
22Q3's quarterly profitability declined slightly, but the company announced that the company had signed fixed-price sales agreements with some customers, affecting the 20-year gross margin performance, and the company's quarterly profitability has been gradually repaired since 21 years. The single-quarter gross profit margins of 22Q1, 22Q2 and 22Q3 are 17.48%, 18.49% and 18.06% respectively, and the net sales margins of the same period are 9.01%, 11.07% and 9.39%, respectively. The profitability of 22Q3 declined slightly in the single quarter, or due to weaker downstream demand; in addition, the net profit rate of 22Q3 sales declined more than the gross margin, or mainly due to the impact of asset impairment and credit impairment in a single quarter. Overall, the company's profitability remained relatively stable.
The company's capacity continues to expand, and 22Q4 production is expected to increase month-on-month according to the "Investor Summary" (2208.23), the company's 21-year production capacity of sintered NdFeB is 20,000 tons, bonded NdFeB capacity is 1500 tons, the company plans to use rights issues to raise funds and self-raised funds to increase sintering NdFeB production capacity of about 10,000 tons, the company expects that part of the production capacity will be completed and put into production in the second half of this year. We expect the company's sintered NdFeB production capacity to reach 30,000 tons by the end of 22nd. With the gradual release of new production capacity, 22Q4's output is expected to increase month-on-month.
Risk tips: macroeconomic is not as expected, downstream demand is not as expected, industry policy changes, and so on.