Summary of events: on January 17, 2023, the company issued a performance forecast for 2022, which is expected to achieve a net profit of 2.2-300 million yuan in 2022, an increase of 82 percent to 149 percent over the same period last year, and is expected to deduct non-returning net profit of 0.5-100 million yuan, an increase of 97 percent over the same period last year.
Benefit from the transfer of shares of subsidiaries, non-economic contribution is greater.
According to the announcement of the company on December 8, 22, Shanghai Jinting Automobile Harness Co., Ltd., a wholly-owned subsidiary of the company, plans to transfer 80% of the equity held by Shanghai Jinting Technology Co., Ltd. to Shanghai Xinwei Industrial Co., Ltd., the total amount of equity transfer is RMB 153 million. After the completion of the above equity transfer, Shanghai Jinting will still hold 10% of the equity interest, and Jinting will no longer be included in the company's consolidated statement. According to the company's estimate, after deducting the profit and loss during the merger period, it is expected that the equity transfer will increase the net profit attributed to the shareholders of the listed company by about 150 million yuan, which will contribute greatly to the 22-year pre-increase of the company's performance.
Optical fiber cable and automobile harness two-wheel drive, buckle non-net profit increases.
The company's net profit of deducting non-home is still growing at a high speed compared with the same period last year, mainly due to the pull of two major business sectors: optical fiber and optical cable and automobile wire harness.
1) Optical fiber and cable: on the one hand, benefit from the overall recovery of the industry, demand-driven optical fiber and cable prices rise year-on-year, orders increase, on the other hand, the company takes the initiative to adjust the sales structure, reduce and do not accept loss orders, at the same time increase the development efforts of non-operators with higher gross profit margin and overseas markets, and operating profits have increased.
2) Automobile wire harness: the new project of the company's automobile wire harness business has entered the stage of mass production, and the overall profit has increased compared with the same period last year. According to our incomplete statistics, the company and its subsidiaries, Sun Company, have disclosed that the order for the winning vehicle wiring harness has reached about 4.4 billion yuan since December 22: according to the company's announcement on December 1, the Jinting car harness (Suzhou) of the all-owned Sun Company has obtained the fixed-point notice of the whole vehicle wiring harness project, and the total life cycle sales are expected to be about 2.5 billion yuan. According to the company's announcement on December 26, Jinting car harness (Suzhou) received the designated notice of the complete vehicle wiring harness project, and the sales volume in the whole life cycle is expected to be about 1.32 billion yuan. According to a report in the Securities Daily on December 11, Jinting Automobile Harness Co., Ltd. received an e-mail notification that a domestic new energy automobile enterprise had won the bid and successfully obtained the business of vehicle low-voltage wire harness and battery-wrapped wire harness. the total life cycle sales of this project is about 580 million yuan. The company has plenty of orders on hand, and the rapid growth of car wiring harness business is expected.
Investment suggestion: with the warming of optical fiber and cable, the gradual confirmation of orders for automobile wiring harness, and the gradual landing of new business industrialization such as superconductivity and optoelectronics, the development of the company is expected to reach a new level. Considering the change of investment income brought by the transfer of subsidiaries and adjusting the profit forecast, it is estimated that the return net profit of the company from 2022 to 2024 is 349 million yuan, the current market value is 20X/15X/11X, and the valuation center of the company is 37X in recent 5 years. Maintain the recommended rating.
Risk tips: the prosperity of the optical fiber and cable industry is down or the price of mobile collection is less than expected; the competition in the automobile harness market is intensified.