Incident: The company released its 22-year annual report. The company achieved revenue of 2,721 million yuan (-13.45%) in 2022, and net profit of the mother was 66 million yuan (-64.09%). Looking at a single quarter, 22Q4 achieved revenue of 1,248 million yuan (-31.56%) and net profit of 117 million yuan (-46.47%) to the mother.
Factors such as delays in revenue recognition, falling orders, and equity payment fees have dragged down the company's 22-year performance. Revenue in '22 was -13.45% year-on-year, mainly due to: ① some business contract signing and project bidding and procurement processes were all delayed to varying degrees, and revenue could not be delivered and confirmed during the reporting period; ② orders for certain types of low-altitude warning radars, certain types of mobile support equipment, etc. declined. -64.09% year-on-year performance in '22, profit side performance fell short of revenue side, and net interest rate fell to 2.54% (-3.46pct), mainly due to: ① The company's gross margin fell slightly to 19.47% (-0.30pct); ② Affected by factors such as equity payment expenses, the company's sales, management, and financial expense ratios increased to 16.05% (+0.98pct); ③ Accrued asset and credit impairment losses totaled $57 million, a sharp increase of $0.59 million over last year.
There was a significant increase in debt under the 22-year contract, and operating cash flow improved. The company's contract debt at the end of '22 was $332 million (+41.86%), mainly due to the increase in advance payments received from customers, which indicates that orders are expected to gradually pick up. The company's net operating cash flow in fiscal year 22 was 118 million yuan, a significant improvement from -51 million yuan in '21, mainly due to the company's strengthened capital management.
CLP's Bowei listing platform insists on focusing on the main business, and equity incentives demonstrate confidence in development. As the listing platform for CLP Bowei, the company's platform value is worth paying attention to. Sensing products: Backed by 38 powerful radar companies, the company occupies a leading position in the field of meteorology and air traffic control radar. The number of new contracts signed for meteorological and air traffic control radar in '22 increased significantly compared to previous years, and won bids for many projects. Perception foundation: In '22, the company's products such as microwaves, printed boards, and power supplies all performed well in new fields. Perception applications: In '22, the company increased sales of its own products while expanding the application market for related industries. The company implemented equity incentives for the first time in '22, binding the management and core cadres of the company and its subsidiaries, which is conducive to mobilizing the enthusiasm of employees and demonstrating confidence in the company's long-term development.
The revenue and gross profit margin were lowered according to the 22-year annual report, adjusted net profit of 23/24 to 208,241 million yuan (previous value was 251,310 million yuan), and net profit of 25 years was added to 267 million yuan. Referring to comparable companies 36 times PE in 23, the target price was 35.28 yuan, maintaining the purchase rating.
Risk warning
Product orders fell short of expectations; restructuring and professional integration progress fell short of expectations