Incident: The company released its annual report for 2002. The company achieved annual revenue of 4.817 billion yuan in 2022, -1.50% year on year; Guimu's net profit was 86 million yuan, +72.18% year on year. Among them, Q4 2022 achieved revenue of 1,423 billion yuan, -3.01% year on year, +17.65%% month on month; net profit of the mother was 443,300 yuan, +99.24% year on year.
Comment:
Revenue levels were generally stable in 2022, and profitability increased. In 2022, the company achieved revenue of 4,817 million, or -1.50% year on year. Among them, Q4 revenue was 1,423 million yuan, -3.01% year on year and +17.65% month on month. Mainly due to the unstable situation overseas and the decline in export orders for weighing products, the revenue of the weighing equipment business was -26.94% compared to the same period last year. Benefiting from the company's active cost reduction measures, profitability has improved. Net profit for the full year of 2022 was 86 million yuan, +72.18% year on year, of which Q4 net profit was 443,300 yuan, +99.24% year on year.
The company's profit level is generally improving. The company's gross margin in 2022 was 23.93%, +0.74pct year on year, of which Q4 gross margin was 26.59%, +3.09pct year on year, +2.56 pct on month; net interest rate was 4.34%, +1.78pct year on year, of which Q4 net interest rate was 3.02%, +6.03pct year on year, -3.35pct on month; sales expenses rate/management expenses rate/financial expenses rate/R&D expenses ratio were 3.43%/6.66%/1.08%/6.33% year on year, +0.25/-1.88/- 0.93/+1.52pct, of which the Q4 fee rates were 3.94%/6.18%/1.97%/6.96%, respectively, and +1.05/-5.62/-0.43/+2.34pct compared to +1.12/-0.62/+2.01/+0.50pct compared to the previous month.
The new energy business is growing rapidly, and both revenue and profitability have increased. In 2022, NEV charging and distribution products went overseas, achieving revenue of 556 million yuan, +142.53% year on year, gross margin of 20.18%, +0.09pct year on year. The revenue of the smart cockpit business was 3.499 billion yuan, -4.11% year on year, gross margin was 23.08%, +0.47pct year on year. Affected by the decline in overseas orders, the company's traditional business scale product revenue fell from 970 million in 2021 to 709 million in 2022, -26.94% year-on-year, and gross margin was 31.56%, +5.37pct year on year.
Investment in R&D has increased significantly, and core competitiveness has driven value increase. In 2022, the company increased R&D investment in smart cockpit components and new energy charging and distribution systems. The annual R&D expenses were 305 million yuan, +29.69% year on year, and the R&D cost rate was 6.96%, +2.15pct over the previous year. By the end of 2022, the company had 817 technicians, accounting for 14.00% of the total number of employees, +1.11pct over the previous year. The strengthening of R&D capabilities is expected to drive the increase in the value of the company's bicycles, which is expected to help the company further expand customers at home and abroad.
Production capacity continues to expand, and there are sufficient orders on hand. The company's capital expenditure in 2022 was 540 million yuan, +81.82% year on year. Among them, the annual production capacity of the Mexican plant increased to 1 billion yuan, the overall overseas production capacity increased to 3.5 billion yuan, and the overseas expansion of the new energy business accelerated. By the end of the reporting period, the company had on-hand orders of about 26.9 billion yuan, of which new energy orders amounted to 14.5 billion yuan, accounting for 53.90%. There is broad room for growth in the new energy business.
Profit forecast: The company's on-hand orders are full, the new energy business is growing rapidly, and the production capacity of overseas factories is progressing in an orderly manner. We are optimistic about the company's long-term development. We forecast that the company's net profit from 2023 to 2025 will be 140 million yuan, 200 million yuan, 260 million yuan, an increase of 64.9%, 42.6%, and 29.3% over the previous year. The corresponding EPS will be 1.08, 1.54, 1.99 yuan, and PE 27/19/15 times.
Risk factors: Overseas market development falls short of expected risks; risk reduction of overseas orders for weighing equipment products; risk of exchange rate fluctuations, etc.