Incidents:
The company released its report for the third quarter of 2022. Q1-Q3 achieved revenue of 1,143 million yuan, an increase of 7.04%; realized net profit of 29 million yuan, an increase of 38.53%; and achieved non-attributable net profit of 0.2 million yuan, an increase of 82.5%.
Comments:
The company is mainly engaged in R&D, design, manufacture and sales of glass deep processing equipment and products. Relying on the technical advantages it has accumulated over a long period of time in glass deep processing, the company is actively expanding and expanding. The main products include glass tempering equipment, high-end deep-processing glass and other core products. On this basis, it has further expanded industrial products such as low-radiation Low-E coating equipment, automated glass deep processing connections, and glass cutting equipment.
Overall operations were steady, and the results for the third quarter alone were under pressure. 2022Q1-Q3 revenue increased 7.04%, performance increased 38.53%, faster than revenue, mainly due to: 1) gross margin increased 2.36 pct to 19.68%; 2) income tax rate decreased 13.23 pct to 6.64%. On a quarterly basis, the company achieved revenue of 414 million yuan in a single quarter in 2022/Q3, an increase of 13.03%; achieved performance of 5.11 million yuan, a year-on-year decrease of 46.05%; achieved non-performance deduction of 2.18 million yuan, a year-on-year decrease of 29.84%. Performance in a single quarter was under pressure, related to the decline in profitability of glass products under double suppression of demand and costs.
The gross margin has increased markedly, and the cost ratio has also risen. The 2022Q1-Q3 gross margin increased by 2.36 pct to 19.68%, mainly due to the rise in gross margin of the special equipment manufacturing industry; the cost ratio for the period also increased by 0.98 pct to 16.5%. Among them, sales, management, R&D, and financial expenses increased by 0.98 pct, -0.18 pct, 0.56 pct, -0.38 pct to 4.45%, 6.65%, 6.52%, and -1.12%, respectively.
The technical advantages are obvious, and the brand effect has accumulated high-quality customers. The company has been deeply involved in the field of glass deep processing for more than 20 years, focusing on special research on technologies such as leadership, efficiency, reliability, intelligence, low consumption and low carbon. It has built a strong R&D team that can provide customers with multi-objective, one-stop and personalized services. The company's high-end products are continuously used in world-renowned iconic projects, the influence of the “Beibo” brand continues to increase, the product quality has been recognized by the market and customers, and already has a high level of popularity and market reputation.
Covered for the first time, giving a rating for increasing holdings. The company's EPS is expected to be 0.06/0.07/0.08 yuan in 2022-2024.
Risk warning: Glass profitability continues to be sluggish, and performance and profit forecasts fall short of expectations