Events:
On January 30, 2023, the company issued a pre-increase announcement of 2022 performance. In 2022, the company is expected to achieve a net profit of 20-250 million yuan, an increase of 47.45%-84.31% over the same period last year; it is expected to deduct a non-return net profit of 1.7-220 million yuan, an increase of 57.91%-104.35% over the same period last year; and basic earnings per share is expected to be 1.17-1.46 yuan per share.
Benefiting from the rapid development of photovoltaic bracket business, net profit has achieved rapid growth:
Benefiting from the strong demand for photovoltaic brackets, the company's photovoltaic support business orders are growing rapidly, and the performance continues to maintain a high growth rate. In 2022, the company is expected to achieve a net profit of 20-250 million yuan, an increase of 47.45%-84.31% over the same period last year; it is expected to deduct a non-return net profit of 1.7-220 million yuan, an increase of 57.91%-104.35% over the same period last year; and basic earnings per share is expected to be 1.17-1.46 yuan per share. With the continuous launch of the company's high-speed communication connector products and the continued expansion of photovoltaic business, the company's performance is expected to continue to improve.
Set up a number of subsidiaries to bind major customers of photovoltaic brackets to raise funds to expand production and enrich the product structure:
In September 2022, the company announced the establishment of a subsidiary company. Shengwei New Energy Co., Ltd., a holding subsidiary, jointly invests Anhui Yihua New Energy Technology Co., Ltd. with its own capital and Chen Qiannuo; Taihua New Energy sets up Haiyin New Energy (Thailand) Co., Ltd. with its own capital and Haiyin business management partnership; and Taihua New Energy sets up "CZT ENERGY INC" and "NEXTRISE INC" subsidiaries in the United States with its own capital and DAYVLLC. The establishment of subsidiaries will help the company to better carry out the actual business activities of photovoltaic business, deeply bind overseas photovoltaic tracking support customers, and improve the business layout of the company's photovoltaic support business at home and abroad. In January 2023, the company issued an announcement on the adjustment of the plan for the non-public offering of A shares in 2022. The total amount of funds raised in this issue will be adjusted to no more than 533.3238 million yuan, which will be mainly used for Yueqing photovoltaic support core components production base construction project, photovoltaic support panoramic application research and development and experimental base construction project, as well as supplementary liquidity. This fund-raising will help the company to enhance its production capacity and achieve mass production of photovoltaic tracking bracket controllers to enrich the product structure, enhance the company's competitive strength, and lay the foundation for the company to further enhance its market share.
Investment advice:
The company has more than 20 years of experience in communication connector research and development, and has expanded the photovoltaic bracket business. we expect the company's operating income from 2022 to 2024 to be 51.51, 56.54 / 7.539 billion yuan respectively, an increase of 14.7%, 9.8% and 33.3%, respectively, over the same period last year; the net profit of homing is 2.35, 0.83 million yuan, an increase of 73.0%, 105.9% and 45.6%, respectively. The corresponding EPS is 1.37, 2.83 and 4.12 yuan, respectively. We give the company 24 times PE in 2023, corresponding to the target price of 67.92 yuan, and maintain the "buy-A" investment rating.
Risk hints: increased market competition, lower-than-expected market demand, lower-than-expected new technology research and development and new product development, raw material price fluctuations, exchange rate fluctuations