公司紧抓新能源车发展市场机遇，全年业绩实现同比高增长。一是截至2022 年底，公司已全面切入世界主流车企供应链，形成汽车市场占比65%（其中节能与新能源车占比接近50%），消费电子及家用电器三大领域齐发展的良性格局，2022 年公司在节能与新能源车、消费电子、家用电器市场销售收入同比分别+170%、+108%、+94%；二是2022 年公司供汽车用磁材产、销量分别为9724、9515 吨，同比分别+47%、+49%，在新能源车领域高速增长的带动下，公司全年实现磁材产量1.55 万吨，同比+42%。The 2022 results fell short of our expectations
The company announced its 2022 results: achieved operating income of 6.319 billion yuan, +88% year on year; realized net profit of 404 million yuan to the mother, +53% year on year. In 4Q22, the company achieved revenue of 1,762 million yuan, +82% year on year, -2% month on month; net profit of the mother was 99 million yuan, +22% year on year, +0% month on month.
Downstream demand came under pressure due to the pandemic in 2022, causing the company's performance to fall short of our expectations.
The company grasped market opportunities for the development of new energy vehicles, and achieved high year-on-year growth in annual performance. First, by the end of 2022, the company had fully entered the supply chain of the world's mainstream car companies, accounting for 65% of the automobile market (of which energy-saving and new energy vehicles accounted for nearly 50%), and the three major fields of consumer electronics and household appliances developed together. In 2022, the company's sales revenue in the energy-saving and new energy vehicles, consumer electronics, and household appliances markets was +170%, +108%, +94% year-on-year; second, in 2022, the company's magnetic materials for automotive production and sales were 9724 and 9515 tons, respectively +47% and +49%, respectively, in the field of new energy vehicles. Driven by rapid growth, the company achieved annual magnetic material production of 15,500 tons, +42% over the same period last year.
The year-on-year decline in the price of magnetic materials in 4Q22 was lower than that of raw materials, leading to a year-on-year increase in fourth-quarter results. According to Asia Metal Network, the average prices of NdFeB 50H and praseodymium oxide in 4Q22 were 370,000 yuan/ton respectively, -1% and -11% year-on-year respectively. The year-on-year decline in magnetic material prices was lower than that of raw materials, leading to a year-on-year increase in net profit in the fourth quarter.
A motor controller developed by the subsidiary Shanghai Dajun achieved mass production, a key step in phased mass production. The subsidiary Shanghai Dajun insists on using new energy passenger vehicles as a growth point. The performance and delivery schedule of a motor controller product developed in collaboration with internationally renowned manufacturers have been recognized by customers. Mass production and sales have exceeded 20,000 units in 2022. The capacity utilization rate increased sharply from 1% in 2021 to 16.28%, and achieved revenue of 9081 million yuan throughout the year, +37% over the same period last year. However, due to factors such as increased market competition and rising raw materials, profit has not yet been achieved, but it has yet taken a key step in phased mass production.
Development trends
Actively promoting the expansion of production capacity and the increase of production capacity with heavy rare earth diffusion technology, the company's NdFeB rough production capacity is expected to reach 36,000 tons/year by 2026. First, according to the announcement, the company has now developed an annual production capacity of 24,000 tons of NdFeB blanks. The company plans to reach a production capacity of 36,000 tons by 2026 according to downstream demand, and CAGR of production capacity is expected to reach 10.7% in 2022-2026. Second, the company's research and development is guided by customer needs, with independent innovation as the main focus, and has formed three core technologies with independent intellectual property rights.
During the reporting period, the coverage rate of products related to heavy rare earth diffusion technology in the company's products exceeded 75%. By the end of the reporting period, the company's heavy rare earth diffusion technology production capacity had exceeded 20,000 tons.
Profit forecasting and valuation
The profit forecast for 23/24 remains basically unchanged. The current stock price corresponds to the price-earnings ratio of 13/11 times for 23/24.
Maintaining a neutral rating and a target price of 14.31 yuan corresponds to a price-earnings ratio of 15.0/12.7 times in 23/24, with room for an upward trend of 15.9% compared to the current stock price.
risks
Downstream demand fell short of expectations, and rare earth prices fluctuated more than expected.
