Investment Inc. publishes its 2022 annual report.
Our analysis and judgment
(1) The new energy business is growing rapidly, with abundant on-hand orders supporting the release of performance, and the company's smart cockpit business achieved revenue of 3.499 billion yuan in 2022, -4.12% over the same period last year, accounting for 72.63% of total revenue. The company acquired Jun Sheng Qunying and entered the auto parts business. Its automotive air management system market share currently ranks first in the country and second in the world. The luxury cockpit interior parts process is leading the world, and the revenue performance of the cockpit business is steady. The gross profit margin of the company's smart cockpit products in 2022 was 23.08%, +0.47pct over the previous year, laying the foundation for the company's performance.
The new energy charging and distribution business includes smart charging piles and in-vehicle power distribution products. It achieved revenue of 556 million yuan for the full year of 2022, +142.53% over the same period last year, accounting for 11.54% of total revenue. The company was one of the first domestic suppliers of smart charging stations for Volkswagen MEB platform models, and received high-quality customer resources such as SAIC Passenger Cars and SAIC GM. By the end of 2022, the total order amount for the entire life cycle of the company's new energy business was close to 15 billion yuan, which is expected to drive the company's revenue growth. The gross margin of the company's new energy vehicle parts, charging and distribution business and other businesses in 2022 was 20.18%, a slight increase of 0.06pct over the previous year.
The traditional weighing equipment business is developing steadily, and gross margin has improved. In 2022, the company's scale business achieved revenue of 709 million yuan, -26.94% year on year, contributing 14.72% to operating income and -5.12pct year on year. This was mainly due to the expansion of the new energy business and smart cockpit business, which led to a passive decline in the revenue contribution of the weighing business. The gross profit margin of the weighing instrument business in 2022 was 31.56%, +5.35pct compared to the previous year, mainly due to cost control. The company has maintained its position as a leader in weighing instruments for many years in a row, continuously improving product process optimization, strengthening internal skills, reducing costs and costs, and striving to enhance the competitiveness of products.
(2) The fixed increase completes battery life development, and increases R&D to supplement momentum. In 2022, the company's R&D expenses reached 305 million yuan, +29.75% year on year, and the R&D cost ratio was 6.33%, +1.53 pct year on year. The company focused its R&D expenses on smart cockpits and new energy charging and distribution products. In 2022, the company successfully completed the private offering of A-shares, raising nearly 600 million yuan to continue to deploy new energy vehicle charging equipment and operating platform development projects and destination charging station construction projects. In recent years, Junsheng Qunying and automakers such as Mercedes-Benz, BMW, Audi, Volkswagen, NIO, and Ideal have gradually expanded the scale of cooperation on new energy vehicles. Against the backdrop of expanding production capacity and improving technical strength, the company's revenue growth has been strong.
Investment advice: We expect the company's revenue from 2023 to 2025 to be 5.146 billion yuan, 5.774 billion yuan, and 6.325 billion yuan respectively, with year-on-year growth rates of 6.83%, 12.21%, and 9.54% respectively. The net profit of the mother is 123 million yuan, 149 million yuan, and 165 million yuan, corresponding to EPS of 0.93 yuan, 1.13 yuan, and 1.25 yuan respectively, maintaining the “recommended” rating.
Risk warning: 1. Risk of product sales falling short of expectations; 2. Risk of rising raw material prices.