Event: the company released the third quarter report of 2022 and achieved revenue of 350 million yuan (+ 75.1% compared with the same period last year) in the first three quarters of 2022. The net profit of homing is 51.399 million yuan (year-on-year + 196.2%), of which Q3 realized revenue of 130 million yuan (+ 108.9%) and net profit of 19.657 million yuan (+ 1602.6%) in a single quarter.
Revenue goes back to the mother and there are plenty of orders on hand. The substantial increase in revenue is mainly due to the substantial growth in the market performance of the company's power Internet of things, and the application of chip technology and related products in the Internet of things market segment is also actively promoting, driving a high increase in net profit. By the end of Q3 in 2022, the company had orders of 166 million yuan, an increase of 61.3% over the same period last year. In terms of profit margin, the company's Q3 single-quarter gross margin is 41% (year-on-year + 1.6pp) and net margin is 15% (year-on-year + 13.3pp). In terms of expense rate, the management rate is 4.6% (year-on-year-3.5pp), the financial rate is-0.4%, the sales rate is 9.4% (year-on-year-3.7pp), and the R & D expense rate is 4.9% (year-on-year + 1.2pp).
The market demand of the power Internet of things is stable, and the dual-mode communication chip has been verified. The company relies on the foundation of the power Internet of things to build the R & D route of "chips, modules, terminals and systems", and the power Internet of things business has achieved substantial growth in the first three quarters. Under the condition that production capacity is effectively guaranteed, the company's orders are abundant and growing steadily. In the first three quarters, the company made a major breakthrough in the national network bidding and won the bid for concentrator terminal products for the first time. In the southern power network market, in the first batch of electric energy metering equipment and broadband carrier module testing, the company's products are all over-tested at one time.
In terms of chip products, the HPLC+HRF dual-mode communication chip completes the mass production verification, and the PLC SoC chip in the field of IoT is used to open the chip. In terms of module products, the company successfully developed the HPLC+HRF dual-mode module and launched a special power line communication module for the Internet of things.
Raise funds to issue 380 million convertible bonds and focus on developing non-electric power sectors. The company plans to issue convertible bonds to raise about 380 million, including 150 million for smart photovoltaic and battery smart management projects, 140 million for smart home multimode communication gateways and smart equipment projects, and 90 million yuan for reserve funds. The company makes efforts in the field of non-power grid, with a market share of more than 50% in the field of smart street lamps, while undertaking the construction of high-speed rail energy management system and promoting the introduction of smart photovoltaic pilot projects. In terms of smart home, the company cooperated with AO.SMITH and Lenovo in all-round cooperation. At the Intelligent Summit of Tencent Cloud Lighting and Home Industry, the company and Tencent jointly released the PLC intelligent solution for the whole house. The new application scenario under the trend of Smart things is expected to bring new performance growth points for the company.
Profit forecast and investment advice. It is estimated that the net profit of homing from 2022 to 2024 is 1.1,2.2 and 260 million yuan respectively, corresponding to 32,16 and 13 times PE respectively, maintaining the "buy" rating.
Risk tips: policy promotion is not as expected risk; upstream chip supply shortage and raw material rise risk; downstream application scenario development is not as expected risk, COVID-19 epidemic repeated risk.