Event: The company released its 2022 annual report and 2023 quarterly report. In 2022, the company achieved revenue of 2,698 billion yuan
The year-on-year increase was 24.36%, achieving net profit of 169 million yuan, an increase of 4.47% over the previous year, achieving net profit of 158 million yuan, an increase of 3.96% over the previous year: in the first quarter of 2023, the company achieved operating income of 427 million yuan, a year-on-year increase of 10.68%: achieved net profit of 33.73222 million yuan, an increase of 18.10% over the previous year; and achieved net profit of 3004.49 million yuan, an increase of 14.11% over the previous year: in line with market expectations.
The company's performance increased steadily in 2023Q1, and investment in R&D continued to increase.
(1) Growth analysis: In 2022 and 2023Q1, the main reason for the continued growth in the company's revenue and performance was ① the company expanded market through customer management and brand settings to enhance market popularity and brand awareness. In-hand orders grew: ② The company focused on industry development hotspots and dabbled in new food segments and wine fermentation markets:
③ The company's business structure and business strategy are continuously optimized to form clear business segments and collaborate with each other to enhance Youting.
(2) Profitability analysis: In 2022, the company's gross sales margin was 20.72%, a year-on-year decrease of 0.69 or ct; the net sales margin was 6.61%, a year-on-year decrease of 0.99 ct, mainly because: ① The gross margin of some of the company's products declined, and the gross margin of the equipment manufacturing business fell 7.73 ct year on year; ② The company increased its market expansion efforts, and the monthly sales fee rate increased:
The sales expense ratio, management cost vehicle, and financial usage rate in 2022 were 0.95%, 10.30%, and -0.66%, respectively, and +0.14pct, -0.01pct, and -0.15pct, respectively, compared to the previous year. In the first quarter of 2023, the company's gross sales margin was 23.55%, up 3.85 pct year on year: net sales margin was 7.86%, up 0.56 pct year on year. Mainly, Guowei's business revenue had certain seasonal characteristics
First-quarter revenue accounts for a small share of annual revenue. In the first quarter of 2023, the company's sales expense ratio, management expense ratio, and financial expense ratio were 0.95%, 13.45%, and -0.45% respectively, compared to -0.08pct, -1.69pct, and +0.45pct respectively over the previous year.
(3) Analysis of operating capacity and operating cash flow: The sales speed and repayment rate of the company's inventory accelerated. In 2022, the company's receivables turnover day was 78.36 days, a year-on-year decrease of 6.61 days: net cash flow from operating activities reached 132 million yuan, a decrease of 49.41% over the previous year. The reason for the large difference between the company's business flow and net profit was due to the company's business growth, equipment and raw material procurement expenses increased a lot.
(4) Continue to increase investment in research and development. The company focuses on R&D innovation, continues to promote the development and combustion of the “production generation+development generation+reserve generation”, and R&D investment has maintained steady growth. 2023Q1, the company's R&D expenditure was 102 million yuan, an increase of 24.04% over the previous year, accounting for 5.05% of revenue, an increase of 0.54 pct over the previous year: In 2022, the company's R&D expenses were 114 million yuan, an increase of 40.18% over the previous year, accounting for 4.23% of revenue, an increase of 0.48 ct over the previous year. The company closely focuses on the “14th Five-Year Plan” and continues to lay out “enterprises with strong talents”. In 2022, the number of R&D personnel in the company reached 490, an increase of 13.95% over the previous year. By the end of 2022, the company had obtained 472 patents, including 41 invention patents, and formulated nearly 100 industry codes and standards. It worked hard to industrialize R&D results. Industrial policy+high downstream prosperity promoted the rapid development of the industry, and the company's market share is expected to increase further.
Guided by industry policies, the grain, oil and cold chain industries are developing rapidly. The grain and oil industry continues to build new buildings and expand production capacity, increasing
Providing incremental market space: grain processing and warehousing develop stock production capacity in the direction of fine-scale and intelligent Gaorui
A large number of technological upgrades are required: At the same time, the demand for new high-quality facilities and the renovation of stock facilities in the cold chain logistics industry will continue to increase. Taking grain and oil storage as an example, according to estimates, the country's annual investment in grain and oil storage is 116.9 billion yuan, including 4.676 billion yuan for design, 40.124 billion yuan for mechanical and electrical engineering. In 2022, the company's design market share was 17.48%, and the mechanical and electrical engineering market share was 5.37%.
The company's technology and brand advantages are remarkable. Benefiting from high downstream demand, its market share is expected to increase further in the future. The company's new orders will reach a record high, keeping up with the subsequent increase in performance.
In 2022, the company signed a new contract amount of 3,944 billion yuan, an increase of 39.59% over the previous year. By industry, contracts signed for the oil processing industry amounted to 3.173 billion yuan, an increase of 34.17% over the previous year; the number of new cold chain logistics industry contracts was 751 million yuan, an increase of 66.76% over the previous year. By product category, the amount of newly signed mechanical and electrical engineering aviation delivery business contracts was 2.154 billion yuan, an increase of 93.76% over the previous year: new design consulting business contracts were signed, an increase of 929% over the previous year: the amount of newly signed equipment manufacturing business contracts was 636 million yuan, a year-on-year increase of 167%, and the company's new orders reached a record high, laying a good foundation for subsequent growth in performance.
Maintain “increase holdings” and evaluate meals. Benefiting from the boom in downstream demand, the company's market share and orders are expected to grow steadily with significant technology and brand advantages. According to the company's 2023Q1 performance, our company's profit forecast for 2023-2025 is estimated to be 303, 4., 46, and 513 million yuan respectively (the value of the skull in 2023-2024 before the adjustment was 444 and 579 million yuan). According to the price of PE corresponding to the rubber price on April 25, 2023, the price corresponding to PE was 23, 16, and 14 times, respectively, maintaining the “increase in holdings” rating.
Risk warning: The risk of declining profitability due to increased competition in the industry: the risk of technological innovation failure; the risk that technology research and development did not achieve the expected results; the risk that information and data used in research reports were not updated in a timely manner.