The company expects to achieve a net profit of 256 million to 293 million in 2022, an increase of 5% to 20% over the same period last year, and an estimated deduction of 325% to 360 million in non-net profit, an increase of 40% to 55% over the same period last year. We are optimistic that the company's home appliance business will further enhance the value of its products with high-end products and component products. at the same time, the company continues to increase R & D investment in new energy vehicle electronic pumps, energy storage pumps, industrial control motors, medical voice coil motors, hollow cup motors, lidar motors and other products, and is expected to cut into emerging markets in the future. open up room for growth, give the company a target price of 42 yuan in 2023 and maintain a "buy" rating.
The performance is expected to increase by 5% to 20% in 2022. In 2022, the company is expected to achieve a net profit of 256% to 293 million, an increase of 5% to 20% over the same period last year, and an estimated deduction of 325% to 360 million for non-net profit, an increase of 40% to 55% over the same period last year.
Among them, it is estimated that the impact of the company's non-recurrent profit and loss on net profit for the whole year of 2022 is-60 million yuan, mainly for floating profits and losses arising from the company's foreign exchange hedging business during the reporting period and discounted interest expenses on bank notes.
Deep ploughing the main business, adding to the emerging areas. With the advantages of years of R & D investment, patent layout and the scale effect of intelligent manufacturing, the company has accumulated many high-quality customers, such as Gree, Midea, Haier, Hitachi, Sharp, Electrolux, Whirlpool and so on. During the reporting period, the company overcame the competitive pressure of the domestic traditional household appliance motor market, and continued to increase the R & D investment of new energy vehicle electronic pumps, energy storage pumps, industrial control motors, medical voice coil motors, hollow cup motors, lidar motors, etc., increase the sales share of high value-added products, improve the product sales structure, and continuously improve the gross profit margin of the products.
Epitaxial mergers and acquisitions to improve the industrial layout. With reference to the rising path of the leading Japanese electric power company in the motor industry, through joint ventures, mergers and acquisitions, and combined with its own platform advantages, the company has successfully entered the new energy, medical and other high-quality races to accelerate enterprise scale expansion and business extension. In 2019, the company acquired Dingzhi Motor to enter the field of medical devices. Dingzhi Motor is a customized precision motion control solution provider mainly composed of micro-special motors. the products are widely used in medical diagnostic equipment, life science instruments and other medical devices, as well as robots, fluid control, precision electronic equipment and other industrial automation fields.
Risk factors: raw material price fluctuations; decline in the prosperity of household appliances; medical care, new energy, robots and other new areas are not as expected; exchange rate fluctuation risk.
Earnings forecast, valuation and rating: we maintain the company's annual EPS forecast of 1.12x1.40 EPS 1.81 yuan in 2022-23-24, with reference to comparable company valuations (41 times 2023 Mingzhi Electric, 42 times Mega Electric 42 times, wind consistent expectations), giving the company 30 times PE in 2023, corresponding to the target price of 42 yuan in 2023, maintaining a "buy" rating.
