What happened: the company reported three quarters of 2022, with revenue of 2.92 billion yuan in the first three quarters, an increase of 1.2% over the same period last year, and net profit of 170 million yuan, down 36.3% from the same period last year. In the single quarter of Q3, the revenue was 1.24 billion yuan, up 24.3% from the same period last year and 58.4% from the previous year; the net profit from the parent was 46 million yuan, down 23.5% from the same period last year and 37.1% from the previous year.
COVID-19 epidemic continued to affect, gross profit margin continued to decline; asset and credit impairment losses from positive to negative, net interest rate dropped sharply compared with the previous month. Since 2022, the outbreak of COVID-19 has relapsed, which has had a negative impact on the production and operation activities of domestic enterprises. Although the company's revenue in the first three quarters increased slightly from the same period last year, the gross profit margin declined sharply. In the first three quarters of 2022, the company's comprehensive gross profit margin was 21.0%, down 3.2 percentage points from the same period last year; Q3 was 19.6% in the single quarter, down 3.2 percentage points from the same period last year. 2.3 percentage points lower than the previous year. In the first three quarters of 2022, the company's period expense rate was 14.3%, an increase of 0.9% over the same period last year; Q3 was 13.5% in a single quarter, down 2.1% from a year earlier and 1.6% from a month earlier. In the first three quarters of 2022, the company's net interest rate was 6.3%, down 3.2 percentage points from the same period last year; Q3 was 4.1% in the single quarter, down 2.1 percentage points from the same period last year and 5.8 percentage points from the previous year. The decline in the company's net profit margin compared with the same period last year was mainly due to the decline in gross profit margin. The sharp decline in month-on-month is mainly due to the positive to negative asset impairment loss and credit impairment loss in the third quarter.
Offshore wind power has outstanding advantages, and coastal provinces and cities actively introduce installation plans, which fully benefit the company. Domestic coastal provinces and cities continue to launch offshore wind power development plans. On October 10, Tangshan, Hebei issued the "Tangshan Offshore Wind Power Development Plan (2022-2035)", which proposed that by 2025, 3GWMY would be installed in Tangshan and 13GW would be installed in 2035. On October 20, Chaozhou, Guangdong launched the 43.3GW offshore wind power development plan, which once again confirmed the clean energy advantages of offshore wind power, with good consumption conditions, high power generation efficiency and small land footprint.
According to our statistics, the new offshore wind power installation plan of our provinces and cities exceeds 60GW during the 14th five-year Plan period. With the accelerated cost reduction of the industrial chain in 2022, it is expected that offshore wind power will enter a period of rapid development after 2023.
The annual production capacity of offshore wind power infrastructure equipment such as single piles and jackets in Nantong base has been increased to 300000 tons, and the active planning and construction of a new base will fully benefit from the increase in sea breeze demand.
Profit forecast and investment advice. It is estimated that the company's net profit from 2022 to 2024 will be 3.5,5.4 and 660 million yuan respectively, and the compound growth rate of net profit will be 23.4% in the next three years. Give the company 15 times PE in 2023, with a target price of 8.55 yuan, and maintain a "buy" rating.
Risk hints: repeated risks of COVID-19 epidemic; a sharp decline in investment in the manufacturing industry; deterioration of the industry competition pattern.