occurrences
On January 29, the company released its 2022 performance forecast.
Key points of investment
The performance forecast slightly exceeded expectations. The company's net profit is expected to increase 239%-262% year-on-year in 2022. According to the company's performance forecast, the company expects to achieve operating income of 4105.89 million yuan in 2022, an increase of 107% over the previous year.
Net profit attributable to the mother is expected to reach 370.37 million yuan - 395.54 million yuan in 2022, an increase of 239% to 262% over the previous year, slightly exceeding expectations; it is expected to achieve net profit of 280.38 million yuan to 310.33 million yuan, an increase of 288% to 330% over the previous year. Assuming the median performance forecast of 380 million yuan of net profit, the company is expected to achieve net profit of 254 million yuan to the mother in Q4 2022, an increase of 248% over the previous year.
According to the company's performance forecast, by the end of 2022, the company had signed new orders of about 7.7 billion yuan (tax included), an increase of about 35% over the previous year; in-hand orders were about 8.1 billion yuan (tax included), an increase of about 59% over the previous year. With the expansion of the company's business scale, the company scale effect gradually became apparent, and profitability increased markedly.
An increase of 2 billion yuan is proposed to strengthen the layout of southwest and southern China to further increase regional influence and market share. According to the company's fixed increase announcement, the company plans to increase 2 billion yuan for the western headquarters and laser intelligent equipment manufacturing base, laser intelligent manufacturing center projects, and supplementary working capital. Power battery sector: Southwest China and South China have become one of the most promising power battery industry clusters in China. 1) The company currently accounts for a relatively low revenue share in the northwest region. Further follows customer strategic plans to strengthen coverage and delivery capabilities in the southwest region. 2) South China is also the main location area for lithium battery manufacturers: the company implemented a laser intelligent manufacturing center project based on the existing Jiangmen production base to further expand production capacity and nearby supporting service capabilities while exploiting synergies. Photovoltaic field: Through years of laser application technology development and mass production accumulation, the company has proven the competitiveness and leadership of the company's products. This fixed increase plan will invest part of the capital to build production capacity for photovoltaic lasers and automation equipment.
The laser automation platform has significant advantages. It continues to expand to the entire lithium battery equipment line, photovoltaic laser and new display equipment business. Currently, the company's core products in the power battery field are laser production machines and battery assembly lines for extreme ear cutting. Downstream customers include Tesla, Ningde Times, China Innovation Aviation, and Evie Lithium Energy. The market share is high and very competitive. The photovoltaic laser equipment field previously won the bid for Jingke Energy's 1.1 billion Topcon laser micro-loss equipment, entering the field of photovoltaic laser equipment. Currently, key laser equipment for high-efficiency photovoltaic cells has been officially delivered. The company will make full use of the advantages of its laser automation platform in the future, in addition to breakthroughs in the field of photovoltaic laser equipment. Continued breakthroughs have been made in the forward and middle stages of lithium battery equipment, gradually becoming capable of full-line production. A large cylindrical coiling machine and a 280Ah energy storage battery assembly line have been officially launched. The field of new displays lays out core equipment such as micro LED mass transfer. It is expected that the company's overall scale effect in 2023 will be further highlighted, driving a further increase in profitability.
Profit forecasting and valuation
The company's revenue for 2022-2024 is expected to be 41.1/70.6/9.05 billion yuan, an increase of 107%/72%/28% over the previous year; the net profit returned to the mother was 3.8/80/97 million yuan, an increase of 251%/108%/22% over the previous year, corresponding to PE 33/16/13 times. The compound growth rate of the company's net profit from 2022-2024 was 107%, maintaining the “buy” rating.
Risk warning: Development of new fields such as photovoltaics fell short of expectations, and the growth rate of new orders in the lithium battery equipment industry declined