Event: on the evening of January 11, 2023, Dingtong Technology issued a performance forecast for 2022. According to preliminary estimates by the financial department, the company is expected to achieve an operating income of 839 million yuan in 2022, a year-on-year increase of + 47.7%. The net profit attributed to the owner of the parent company is expected to be 168 million yuan in 2022, + 53.9% year on year, and 158 million yuan in 2022, + 59.2% compared with the same period last year.
The company's overall performance is in line with our previous expectations, continuing high-quality growth. According to the company's performance forecast guidelines, the company's 2022Q4 is expected to achieve operating income of 181 million yuan, + 16.2% compared with the same period last year; 2022Q4 is expected to achieve a net profit of 43 million yuan, + 73.8% compared with the same period last year. Due to the implementation of equity incentives by the company, the related share payment fees are expected to have an impact of 13 million yuan on the net profit during the reporting period. if the impact of equity payment fees is not taken into account, the company's net profit is expected to be 181 million yuan, + 58.6% compared with the same period last year. The actual performance greatly exceeded the market expectations.
The cooperation between the communication side and the core customers continues to deepen, and the vehicle products advance steadily. The cooperation between the communication side companies and major customers continues to deepen, the share continues to increase, and the follow-up is expected to continue to contribute to high-speed growth performance support. At the same time, the in-vehicle product level company cooperates deeply with the core customer BYD, and the high voltage connector project is progressing steadily, and it is expected to enter the harvest period in 2023. In 2022, BYD's production of new energy vehicles reached 1.877 million, year-on-year + 209.2%, sales reached 1.863 million, year-on-year + 208.6%. We expect that with the continuous development of our own brands in 2023, market recognition is expected to continue to increase. At the same time, with automotive products going out to sea, BYD is expected to continue its rapid growth in 2023, and the company is expected to benefit deeply as an incremental parts manufacturer of electric intelligence.
The company will increase the capacity layout on the ground, and the follow-up is expected to contribute a new increment. The company issued a fixed increase plan on April 9, 2022, which intends to raise no more than 800 million yuan. The proposed projects include: high-speed communication connector assembly production and construction project (388 million yuan), new energy automobile connector production and construction project (252 million yuan) and supplementary liquidity (160 million yuan). Among them, the company expects to increase the production capacity of 47.7 million high-speed communication connector projects after reaching production, with an average annual increase of 620 million yuan in revenue / 100 million yuan in net profit; and 24.9 million new production capacity in new energy vehicle connector projects after reaching production, corresponding to an additional revenue of 370 million yuan / net profit of 50 million yuan. The production expansion project is implemented by the subsidiary Henan Dingrun, and the construction cycle of the production base is about 30 months. At present, the company's fixed increase project has been landed, and we expect that the continuous construction of Henan base production capacity is expected to provide support for the company's growth and expansion.
Investment suggestion: we believe that the demand for the company's nuclear communication connector products will continue to increase at the communication level with the continuous development of data centers and servers. New energy vehicle connector E architecture change superimposed vehicle platform high-voltage deepening, car connector ceiling is expected to further open, the company has cut into BYD and other core mainframe factory customers It is expected to bring new performance increments in the process of continuous expansion of product categories. We adjust the company's profit forecast according to the company's performance forecast, and it is estimated that the company's revenue in 2022-2024 is expected to reach 839pm, 2006x1590 million respectively, and the return net profit is expected to reach 165x242xpx respectively, corresponding to a PE of 3916x21x. We believe that with the rapid development of the industry, the company is expected to rely on its own technological advantages to grow rapidly and maintain the "recommended" rating.
Risk hint: the sales of new energy vehicles are not as expected; the expansion of the company's product categories is not as expected.