Fei Rongda issued an announcement: in the first three quarters of 2022, the company achieved an income of about 2.8 billion yuan / yoy+39%, return net profit to return to profit.
Main points of investment
The income reaches a record high, and the profit meets the inflection point.
The company's 2022Q3 revenue reached an all-time high of 1.075 billion yuan / yoy+33%/QoQ+11%, in a single quarter. Profit to meet the substantive breakthrough, the company 2022Q3 to achieve a return to the net profit of 38 million yuan, to achieve deduction of non-return net profit of 0.31 million yuan / yoy+962%, quarter-on-quarter turnround to profit. Profitability continues to rise, with the company's 2022Q1/Q2/Q3 gross profit margin of 11.9%, 13.8%, 17.7% and net profit of-3.3%, 2.4%, 3.6%, respectively. Profitability continues to rise, and the inflection point is clear. In terms of cash flow, the net cash flow of the company's 2022Q3 operating activities is + 120 million yuan, showing a sound performance.
On the whole, the company's forward-looking transformation, plus the development of new energy business, achieved remarkable results, and the revenue side maintained rapid growth. The profit side is expected to improve gradually, on the one hand, it comes from the relief of cost pressure caused by the downward price of raw materials; on the other hand, it comes from the dilution of unit cost brought by the scale effect of the company.
The new energy product line is rich and is expected to continue to grow at a high level.
The company's 2022H1 income is about 1.7 billion yuan, of which the new energy business income of nearly 400 million yuan / yoy+229%, accounts for about 22%, consumer electronics accounts for 32%, and the communications sector accounts for 30%. In the first three quarters of 2022, the proportion of the company's new energy business revenue increased to 28% yogurt 205% dint 2022Q3 single-quarter new energy revenue reached about 400 million yuan, accounting for nearly 40%, a significant increase. The company's new energy products include liquid cooling plate, composite cover plate, battery end plate, connecting piece, energy storage system components and so on. In the field of electric vehicles, the company's customers include Guangzhou Automobile, BAIC, Ningde, Funeng, etc., photovoltaic and energy storage customers include Sunshine Power, Guriwatt, Goodway, Francois and Ningde era.
The company signed strategic cooperation with Ningde Times at the end of 2021, with a contract order of 3.6 billion yuan to provide Ningde era with liquid cooling plates, composite cover plates and other products. The company's new energy business product line is rich, customer quality, the future revenue end is expected to continue to grow at a high speed.
Improve the long-term incentive mechanism, actively increase production capacity to ensure long-term growth companies in order to further establish and improve the company's long-term incentive mechanism to attract and retain outstanding talent, the company implemented an equity incentive plan (10.9 yuan per share) on November 26, 2021, and granted a reservation to the incentive target on February 11, 2022 (12.48 yuan per share). The related expenses increased by about 40 million yuan in the first three quarters of 2022. The company actively increased its capacity layout, with capital expenditure of 463 million yuan in the first three quarters of 2022, maintaining a high level of capital expenditure. The additional issue of the company has been approved by the CSRC and intends to raise 1 billion yuan, of which 800 million yuan will be used to expand the production capacity of products such as overweight energy storage components and liquid-cooled panels. The project is expected to increase revenue by about 2.3 billion yuan and net profit by about 200 million yuan. In addition, the company has invested 5 billion yuan in Jiangsu to build a new intelligent power supply and new material industrialization project, which is expected to bring production capacity guarantee for the company's medium-and long-term growth.
The company actively straightens out governance, retains talents through equity incentives, and actively raises funds to expand production to ensure the company's long-term growth.
Profit forecast
Based on the principle of prudence, the impact of this additional offering on performance and equity will not be considered for the time being.
It is estimated that the net profit of 2022Universe 2023Universe in 2024 will be 0.5Universe 2.1 / 380 million yuan, eps is 0.09Universe 0.42, and the corresponding PE is 181-40-23 times respectively. The company will increase the layout of the new energy industry, optimize the governance structure, long-term company growth is expected, and maintain the company's "buy" rating.
Risk hint
Policy fluctuation risk; downstream demand is lower than expected; product price is lower than expected; competition pattern deterioration risk; capacity expansion and digestion is not as expected; IPO progress is not as expected.