Events:
On October 26, Kuaike Electronics released its third quarterly report of 2022. The company's revenue in the first three quarters of 2022 was 822 million yuan, an increase of 50.81% over the same period last year. Its net profit was 87.2471 million yuan, an increase of 79.82% over the same period last year. The net profit deducted from non-parent was 84.9527 million yuan, an increase of 75.72% over the same period last year.
Comments:
The company's net profit increased by 79.82% in the first three quarters of 2022, the performance was in line with expectations, and the Q3 gross profit margin increased significantly. In the first three quarters of 2022, the company achieved revenue of 822 million yuan, an increase of 50.81% over the same period last year, and its net profit was 87.2471 million yuan, an increase of 79.82% over the same period last year. From the Q3 single quarter, our Q3 revenue was 281 million yuan, an increase of 21.36% over the same period last year. The 2022Q3 net profit was 40.1875 million yuan, an increase of 94.07% over the same period last year. As a high-tech enterprise with independent research and development and continuous innovation, the company is committed to providing customers with safe, reliable and efficient photovoltaic cell module current transmission, bypass protection and connection integrated photovoltaic junction box and connector products. The upstream raw material cost end reduces, the superimposed product upgrades, the company Q3 gross profit margin increases obviously. 3Q22's single-quarter gross profit margin was 22.50%, an increase of 3.73 pct year-on-year and 7.34 pct month-on-month.
The demand for core photovoltaic components is strong, and the company's accounts receivable, prepaid accounts and contract liabilities are showing a rapid growth trend. There is a strong market demand for photovoltaic module core accessories photovoltaic junction boxes and photovoltaic connectors. by the end of June 2022, the installed capacity of solar power generation was about 340 million kilowatts, an increase of 25.8 percent over the same period last year. In the first half of 2022, the total export volume of photovoltaic products (wafers, batteries, modules) was 25.9 billion US dollars, an increase of 113 percent over the same period last year, a record high, of which the export volume of photovoltaic modules 78.6GW, an increase of 74.3 percent over the same period last year. The company actively opens up new customers, increases the production capacity of its main business products, and makes breakthroughs in product sales. The company's accounts receivable in the first three quarters of 2022 was 352 million, an increase of 46.01% over the same period last year. The advance payment was 25.756 billion yuan, an increase of 215.59% over the same period last year; the contract liability was 9.717 million yuan, an increase of 222.92% over the same period last year, mainly due to the signing of long-term orders by customers, which had not yet been delivered.
The company has obvious customer advantages and outstanding competitiveness in the photovoltaic subdivision field. The company has a certain reputation in the field of photovoltaic junction boxes and connectors, and has established long-term and friendly cooperative relations with Trina Solar, Jing'ao Solar, Youda Optoelectronics, Tongwei shares, Zhonglai shares, HANSOL and other companies. The company's sales network has covered North China, East China, South China, Northwest and other provinces and autonomous regions, the products are also widely used in South Korea, India, Vietnam, Germany, the United States and other overseas countries and regions of photovoltaic power station construction. The company has obvious advantages in customer resources, and it is one of the enterprises with strong competitive advantage in the subdivision field.
Profit forecast and investment rating: the company is a leading company in the photovoltaic junction box industry and continues to benefit from the high prosperity of the photovoltaic industry. We estimate that the EPS in 2022-2024 will be 1.97 and 4.27 respectively, corresponding to the existing share price PE of 65X and 43X and 30x respectively, maintaining the "recommended" rating.
Risk tips: (1) downstream demand slows down; (2) upstream raw material price fluctuation risk; (3) the progress of fund-raising and production is not as expected.