Event: The company's revenue in 2022 was 53.491 billion yuan, +5.0% year on year; profit attributable to equity holders was 827 million yuan, -49% year on year. Among them, the new energy business achieved revenue of 11.934 billion yuan, +191.0% year on year.
Comment:
The operating situation is relatively stable. The overall performance was affected by changes in the fair value of financial assets. The company achieved revenue of 53.491 billion yuan in 2022, +5.0% year on year; achieved gross profit of 8.207 billion yuan, -4.0% year on year; the sum of the performance of the five major business segments reached 2,443 billion yuan, +21.7% year-on-year. Overall, the company's business situation was relatively stable. However, the company's annual profit in 2022 was 1,407 million yuan, -28.4% year on year; profit attributable to equity holders was 827 million yuan, -49% year on year. We think it was mainly due to changes in the fair value of financial assets: income from changes in the fair value of the company's financial assets in 2022 was 202 million yuan, a decrease of 1,010 million yuan (-83.3% year-on-year) from the same period last year (1,212 million yuan).
The new energy business performed brilliantly, with revenue +191% year-on-year in 2022
In 2022, the company's new energy business achieved revenue of 11.934 billion yuan, +191.0% year on year; the performance of the new energy division reached 431 million yuan, +50.7% year on year. Skyworth PV has covered Shandong, Hebei, Henan, Fujian, Shanxi, Anhui, Jiangxi, Liaoning, Beijing, Gansu, Guangdong and other places in 2022, and has entered the first tier of the household photovoltaic circuit. Skyworth distributed photovoltaic power plants ranked among the leaders in the industry in terms of the total installed scale of Skyworth distributed photovoltaic power plants. In 2022, more than 140,000 household photovoltaic power plants were built and connected to the grid. At the same time, Skyworth continues to deepen its household photovoltaic business, gradually developing businesses such as industrial and commercial photovoltaics and integrated smart energy management on the electricity side, continuously expanding business boundaries to help the new energy business continue to grow.
The intelligent system technology business reached the top of the world, and the ToB business established a strong moat. In 2022, the company's intelligent system technology business had a turnover of 11.933 billion yuan, +9.4% over the same period last year. Among them, overseas market turnover was 5.228 billion yuan, an increase of 29.3% over the previous year, achieving leaps and bounds.
In 2022, Skyworth continued to take advantage of its market share of smart set-top boxes and broadband connectivity products, and achieved new breakthroughs such as centralized procurement of set-top boxes by the three major domestic telecom operators, increased bid share and order delivery. Among radio and television network operators, the market share of new 4K set-top boxes was also expanding simultaneously. At the same time, the company accurately grasped the trend of gigabit network upgrades and superimposed metaverse, deepened business fields such as digital set-top boxes and broadband network communication smart devices, made every effort to cultivate new fields of the digital economy such as virtual reality and automotive in-vehicle display systems, and enhance the company's core competitiveness in the entire smart terminal industry chain.
Investment advice
Since the performance fell short of expectations due to changes in the fair value of financial assets in 2022, we lowered our profit forecast. We expect to achieve revenue of 680, 840, and 98.7 billion yuan in 2023-2025 (previous values of 707 and 85.2 billion yuan in 2023-2024), +27%, +24%, and +18%, respectively; realized profit attributable to equity holders of 14.49, 18.66, and 2,326 billion yuan (pre-value of 2023-2024 was 2.03 billion yuan and 2,503 billion yuan), +75%, +29%, + respectively 25%, corresponding PE is 6.3, 4.9, 3.9 times, maintaining the “buy” investment rating.
Risk warning: sharp price increases for raw materials, a sharp decline in industry demand, increased competition, new business expansion falling short of expectations, overseas market expansion falling short of expectations, risk of differences in valuation systems in different markets, and risk of suspension, suspension and cancellation of listings for Kukai Technology and Skyworth Electric.