Event: the company issued an annual performance forecast for 2022, which is expected to achieve a return net profit of 400-428 million yuan, an increase of 170% RMB189% over the same period last year, and an estimated deduction of RMB 3.28-356 million yuan for non-net profit, an increase of 136%-157% over the same period last year. Q4 is expected to achieve a net profit of RMB 1.80-208 million in the single quarter of 2022, an increase of 280%-339% over the same period last year, and is expected to deduct non-net profit of RMB 1.15-143 million, an increase of 165%-229% over the same period last year.
Photovoltaic energy storage, new energy vehicle industry demand is strong, the company accelerates the production capacity layout. The company's performance is expected to achieve substantial growth, mainly for the following reasons: 1) the company's international and domestic markets are further expanded, benefiting from the rapid development of photovoltaic energy storage and new energy vehicle industry, and the rapid growth of customer demand. The company speeds up production capacity construction according to customer demand, and the substantial increase in revenue leads to the growth of profits. 2) the prices of major raw materials are lower than the same period last year, and internally actively improve R & D technology and optimize production processes, improve internal management and operation efficiency, and improve product yield; at the same time, with the growth of sales scale, unit manufacturing cost shows a downward trend, so that the level of profit margin.
3) subsidiaries Jiangsu Minglida and Guangdong Minglida belong to national high-tech enterprises and enjoy national preferential tax policies. In 2022, Q4 meets the requirements to enjoy full deduction for newly purchased equipment and appliances, which makes the amount of government subsidies and incentives increase compared with the same period last year.
The company is an one-stop multi-process precision structural parts leading enterprise, binding high-quality customers at home and abroad to achieve global business layout. The company's business process covers die-casting, plastic, profile stamping and wire assemblies, the downstream of the company involves photovoltaic energy storage, new energy vehicles, security, consumer electronics industries, the core customers include SolarEdge, Enphase, BYD, BAIC New Energy, Ningde era and so on. Benefiting from the high market prosperity in the photovoltaic, energy storage and new energy vehicle industries, the company's performance is expected to maintain rapid growth.
At present, the development of the company is mainly restricted by production capacity, speeding up production capacity construction at home and abroad. At present, the company has 8 production bases in China, of which the new production bases in Jiangxi and Anhui have been put into production at the end of 2022, and the production bases in Mexico are being built overseas. With the new production bases being put into production one after another, it is expected to form a greater support for performance.
Profit forecast and investment advice. It is estimated that the company's net profit from 2022 to 2024 will be 4.09,7.20 and 1.112 billion yuan respectively, and the corresponding EPS will be 1.02,1.80,2.78 yuan respectively. The company is a domestic one-stop multi-process precision structural parts leading enterprise, maintaining the "hold" rating.
Risk hints: the risk of raw material price fluctuation; the risk of intensified market competition; the risk of large scale of accounts receivable and inventory, etc.