Event: on the evening of April 18, Dingtong Technology released its annual report of 2022 and quarterly report of 2023. In 2022, the company realized revenue of 839 million yuan, year-on-year + 47.7%, and net profit of 168 million yuan. Compared with the same period of last year, + 54.0% Ting 2023Q1 achieved operating income of 162 million yuan,-8.2% year-on-year, and net profit of 33.218 million yuan, + 3.06% of the same period last year.
In 2022, the company's overall performance was in line with expectations, and 2023Q1 was slightly under pressure. The company's 2022Q4 realized operating income of 181 million yuan, + 16.4% of the same period last year, and net profit of 32.05 million yuan, + 38.1% of the same period last year. In 2022, the company's business showed a trend of high-speed and high-quality growth. From the perspective of business, the annual revenue of communication connector products was 552 million yuan, an increase of 33.0% over the same period in 2021, and the revenue of automobile connector business was 161 million yuan. It increased by 111.8% over the same period in 2021, becoming a new engine for the company's rapid growth. 2023Q1 is affected by the macroeconomic environment at home and abroad, the company's income performance is slightly under pressure, and profits are growing against the trend.
The growth of communication + automobile two-wheel drive company is expected to benefit deeply from scientific and technological change. The company's main business communication connectors (65.8% in 2022) + automotive connectors (19.2% in 2022). Communication connectors and their components are eventually used in servers, data centers, base stations and other large-scale data storage and switching equipment. Deep binding to global leading manufacturers such as Morse, Amfino and Tyco is expected to deeply benefit from incremental hardware requirements brought about by the development of artificial intelligence. At the same time, the company's automotive connector products are mature and cooperate deeply with BYD and other mainframe factories, and the continuous iteration of the products is expected to extend the company's growth curve.
The third phase of Henan Dingrun Phase II has started construction, and the follow-up is expected to bring important increments for the company. The company is scheduled to increase 800 million yuan in 2022, including: high-speed communication connector assembly production and construction project (388 million yuan), new energy automobile connector production and construction project (252 million yuan) and supplementary liquidity (160 million yuan). The expansion project is implemented by the subsidiary Henan Dingrun, located in Xinyang, Henan Province, with the advantages of both transportation and labor costs. at present, the second phase has been completed and put into production, and the third phase has been officially started a few days ago. We expect that the continuous construction of Henan base capacity climbing downhill is expected to provide support for the company's growth and expansion.
Investment suggestion: we believe that the demand for the company's nuclear communication connector products will continue to increase at the communication level with the continuous development of data centers and servers. New energy vehicle connector E architecture change superimposed vehicle platform high-voltage deepening, car connector ceiling is expected to further open, the company has cut into BYD and other core mainframe factory customers It is expected to bring new performance increments in the process of continuous expansion of product categories. We estimate that the company's revenue in 2023-2025 is expected to reach 1.2265 billion yuan respectively, and the net profit of returning home is expected to reach 2.49 million yuan, 3.25 trillion yuan, respectively, and the corresponding PE is 26ppm. At the same time, we believe that with the rapid development of the industry, the company is expected to rely on its own technological advantages to grow rapidly and maintain the "recommended" rating.
Risk hint: the overseas demand of the company's products is lower than expected; the sales of new energy vehicles are not as expected; the expansion of the company's product category is not as expected.