Events:
According to the 2022 annual report, the company achieved an operating income of 69.319 billion yuan in 2022, an increase of 16.64 percent over the same period last year, a net profit of 1.089 billion yuan, an increase of 25.36 percent, and a net profit of 1.065 billion yuan, an increase of 29.57 percent over the same period last year.
The volume of high-end products will reach a record high in 2022
In 2022, the business income of the company's bar / strip / foil / aluminum rod / cable / profile / structure parts was 463.50max 100.41max 91.13x 29.84pm respectively, which was + 18.48%, 4.05%, 21.45%, 40.12%, 12.80% respectively, compared with the same period last year. In terms of sales volume, the company's total sales of all kinds of aluminum alloy products in 2022 was 4.0034 million tons, an increase of 11.96% over the same period last year; among them, bar / strip / foil / profile / aluminum rod cable / structure sales were 291.33 picks 49.62 picks, 9.62 picks, 49.77 tons, respectively, compared with the same period last year, + 14.57% picks 4.89% "29.65% pluses" 13.86%; structural parts sales were 37.9805 million pieces, down 5.17%. In terms of sales unit price, the income of bar / strip / aluminum rod cable / profile ton was 1.59 up 2.02 shock 1.83 / 31000 yuan / ton, an increase of 3.41% over the same period last year, with an increase of 9.40% 6.67% 8.14%. In 2022, Suzhou Chuangtai "annual production capacity of 60,000 tons of transportation lightweight aluminum alloy parts and IT accessories project" and Inner Mongolia innovative lightweight "transportation lightweight aluminum alloy parts and IT accessories project" have been completed one after another, and the company's high-end aluminum alloy products have achieved volume. The company will also use the funds raised to carry out the annual production of 1.2 million tons of light and high-strength aluminum alloy material project in Yunnan (Phase II). The production capacity of high-end products will be gradually released, opening up growth space for the company.
Ton gross margin continues to improve, boosting profitability
In 2022, the company's gross profit margin / net profit margin was 3.44% / 1.57% respectively, and increased by 0.22% / 0.11 pct; respectively compared with the same period last year. According to the sub-business, the gross profit margin of bar / strip / foil / profile / aluminum rod / cable / structure was 2.37% / 2.12% / 20.58% / 2.54% / 8.05%, respectively, and + 0.09 amp / 0.38 amp / 0.45b / 0.67 pct / structure respectively compared with the same period last year. In 2022, the company's average gross profit per ton of aluminum alloy products was 589 yuan / ton, an increase of 68 yuan / ton over the same period last year; of which, the gross profit per ton of bar / strip / foil / profile / aluminum rod cable was 377 pound / ton, respectively, an increase of RMB 6383 / ton, an increase of 277 yuan / ton, driven by the growth of gross profit level of the company. In 2022, the net operating cash flow of the company was-414 million yuan, an increase of 86.67% over the same period last year, and the cash-to-cash ratio was 112.81%, an increase of 0.81 pct over the same period last year. The aluminum alloy production capacity of the company leads the country, the scale effect is prominent, and the expense rate continues to decline during this period. The expense rate for the period of 2022 was 1.32%, a decrease of 0.06 pct; compared with the same period last year. Among them, the sales / management / R & D / financial expense rates were 0.12%, 0.46%, 0.38%, 0.36%, respectively, compared with the same period last year.
In 2022, the company used about 686500 tons of recycled aluminum, an increase of 30.17% over the same period last year. The company plans seven recycled aluminum projects in Shandong, which are expected to be completed one after another in 2023-2024. after all the company is put into production, the company's recycled aluminum production capacity will increase to 2.05 million tons, effectively making up for the impact of local aluminum water shortage; and the purchasing price of recycled aluminum is lower than that of raw aluminum. The release of recycled aluminum production will increase the company's profits.
Profit Forecast and Investment rating
The company is the leader of domestic aluminum alloy processing products, with leading production capacity and outstanding customer advantages; the upgrading of product structure promotes the rise of processing fees and opens up the growth space for the company. We estimate that the company's homing net profit for 2023-2025 will be 1.279, 14.84 billion yuan, respectively, an increase of 17.50%, 15.95%, 13.73% and 0.42 yuan, respectively, over the same period last year, maintaining the "buy" rating.
Risk hint
Macroeconomic downturn, lower-than-expected demand; the risk of a sharp rise in raw material prices; the progress of new projects is not as expected; the upgrading of product structure is not as expected, and the risk of falling processing fees.