Introduction to this report:
The company's servo system developed steadily in 2022, the PLC and machine tool sectors grew rapidly, and fund-raising for the construction of industrial precision transmission and photovoltaic inverters is expected to bring new growth to the company.
Key points of investment:
Maintain the increase in holdings rating. The 2023-24 EPS was maintained at 1.2/1.63 yuan respectively, the 2025 EPS was added at 2.1 yuan, the target price was maintained at 56.4 yuan, and the holdings increase rating was maintained.
The performance was in line with expectations: revenue of 944 million yuan in 2022 (+25.66% year-on-year), net profit of 0.9 million yuan (-17.85% year-on-year); 2022Q4 achieved revenue of 243 million yuan (+17.11% year-on-year), and net profit of 0.1 million yuan (-97.46% YoY). 2023Q1 achieved revenue of 276 million yuan (+44.38% YoY) and net profit of 21 million yuan to the mother (+8.47% YoY).
Servo systems developed steadily in 2022, and the PLC and machine tool sectors grew rapidly. 1) Servo system: Revenue of 758 million yuan (+14.98% year on year), the company's customers are concentrated in the photovoltaic, lithium battery and other new energy industries. In order to quickly enter the market, the company's product prices have been reduced. As prices gradually stabilize, the servo system is expected to grow steadily in 2023; 2) PLC: Revenue of 121 million yuan (+203.71% compared to the same period), the company's PLC products cover a comprehensive range of products, and the proportion of medium and large PLC products is expected to continue to increase. It is expected that PLC will maintain high growth in 2023; 3) Machine tools: revenue 0.24 At 100 million yuan (+127.39% over the same period), the machine tool business base is relatively small and the growth rate is relatively fast. It is expected that the high growth rate will continue in 2023.
Raise capital for the construction of industrial precision transmission and photovoltaic inverter projects. In April 2023, the company plans to raise no more than 750 million yuan to build high-efficiency industrial transmission systems and precision transmission components projects and micro photovoltaic (energy storage) inverter projects. After completion of the project, it will further promote the industrial application of the company's industrial transmission systems and transmission components such as high-efficiency industrial motors and inverters, and add production capacity for micro photovoltaic (energy storage) inverters to the company, which is expected to bring new growth to the company.
Risk warning: Downstream demand for industrial control fell short of expectations; the release of fund-raising capacity fell short of expectations.