Core views:
The company disclosed the 2022 annual report and the first quarter report of 2023, and the high performance was realized. Revenue achieved in 2022 was 582 million yuan, +114.64% year on year; net profit attributable to the mother was 163 million yuan, +130.38% year on year; 23Q1 achieved revenue of 244 million yuan, +80.89% year on year; net profit of homing was 102 million yuan, +96.01% year on year; net profit attributable to shareholders of listed companies after deduction of equity incentive expenses was 124 million yuan, +76.31% year on year.
Gross margin remains high, expense ratios are falling, and profitability is strong. The company's gross margin in 2022 was 63.59%, +7.72pct year on year, net interest rate 27.93% year on year, +1.88pct year on year; period fee rate was 29.9% year on year, -3.12pct year on year; 23Q1 gross margin was 62.78% year on year, -5.98 pct year on year, net interest rate 42.10% year on year, +3.77pct year on year, year on year.
Lithium battery cutting drives continued growth in performance, and the coating business is expected to contribute to a new growth pole. According to the company's financial report, the company's precision manufacturing business achieved revenue of 541 million yuan in 2022, +151.95% compared to the previous year, accounting for 93% of revenue, and a gross profit margin of 67.69%, +3.87pct over the previous year. 23Q1 achieved revenue of 233 million yuan, +90.61% year on year; net profit of Guimu was 114 million yuan, +83.51% year on year, accounting for 95% of revenue. Zhihong Precision, a wholly-owned subsidiary, continues to consolidate its leading position in mold manufacturing. The company is actively expanding into advanced lithium battery production equipment. Zhifeng Technology, which holds Sun company, has successfully developed a variety of high-precision extrusion coating dies. Slit extrusion dies have been supplied in batches, and is expected to contribute more growth in the future.
Profit forecasts and investment recommendations. The company continues to develop high-quality customers, and the release of core products is expected to accelerate as the penetration rate of laminated batteries increases. The company's revenue for 2023-2025 is estimated to be 1,500,000, 2.1 billion yuan, 2.7 billion yuan respectively, and net profit of the mother is 63,850 million yuan, and 1.10 billion yuan respectively. The company was given 25 times PE in 2023, corresponding to a reasonable value of 93.88 yuan/share, maintaining the “buy” rating.
Risk warning. New energy vehicle sales and power battery sales fell short of expectations; lamination technology development and process penetration rate fell short of expectations; battery production capacity progress fell short of expectations; industry competition intensified, etc.