Incidents:
On February 27, 2023, the company released its annual performance report for 2022. In 2022, the company expects to achieve revenue of 839 million yuan, an increase of 47.69% over the previous year; it expects to achieve net profit of 168 million yuan, an increase of 53.96% over the previous year; net profit after deducting non-return to the mother is expected to achieve 158 million yuan, an increase of 59.06% over the previous year.
The automobile business is developing rapidly, and net revenue and profit continue to grow:
In 2022, in terms of communication business, the company actively expanded product models to enrich product application scenarios to meet customer needs; in the automotive connector business, benefiting from the booming development of the new energy sector, new energy vehicle enterprise customer demand was strong. The company continued to deepen cooperation with customers such as BYD, and also established good cooperative relationships with companies such as Nandu Power and Honeycomb Energy. New products have continuously passed certification and climbed into mass production, and the company's performance continues to grow rapidly. In 2022, the company achieved operating income of 839 million yuan, an increase of 47.7% over the previous year; achieved net profit of 168 million yuan, an increase of 53.9% over the previous year; and realized net profit of 158 million yuan after deduction of the mother of the mother, an increase of 59.2% over the previous year. Among them, due to the company's implementation of the 2021 restricted stock incentive plan, the impact on 2022 net profit was 13.099,800 yuan. Excluding the impact of equity payments, the company achieved net profit of 181 million yuan, an increase of 58.66% over the previous year. In the Q4 quarter of 2022, the company expects to achieve revenue of 181 million yuan, an increase of 16.3% over the previous year; it is expected to achieve net profit of 32 million yuan to the mother, an increase of 37.54% over the previous year.
Profitability increased year-on-year, and the fixed increase was completed to support subsequent capacity expansion:
According to forecast data, the company expects to achieve a net interest rate of 20.07% in 2022, an increase of 1.01 pct over the previous year. Among them, the company expects to achieve a net interest rate of 17.68% in Q4 2022 in a single quarter, an increase of 2.78 pct over the previous year. Profitability continues to improve and remain at a high level. In the future, the company's products and business will continue to advance in the middle and high-end, high-margin fields, and the company's profitability is expected to remain high. By the end of 2022, the company's fixed increase had been completed. A total of 13,331,104 shares were issued in this fixed increase. The issue price was 60.01 yuan/share, and the net capital raised was about 785 million yuan. The completion of this fixed increase will be used to support the company's subsequent capacity expansion, ease the pressure on the company's medium- to long-term production capacity, and enhance the sustainability of rapid performance growth.
Investment advice:
The company's performance continued to grow rapidly, raised additional capital to expand production capacity, and its performance grew rapidly and sustainably improved. We expect the company to achieve operating income of 839/1263/1,789 million yuan in 2022/2023/2024 and achieve net profit of 168/2.48/357 million yuan, corresponding to EPS 1.70/2.51/3.61 yuan. We gave the company 29 times PE in 2023, and the corresponding target price was 72.79 yuan, maintaining the “Buy-A” investment rating.
Risk warning: the risk of production capacity climbing falling short of expectations, rising labor costs, and new orders from major customers falling short of expectations