Description of the event
The company achieved revenue of 15.199 billion yuan in 2022, an increase of 11.16%; achieved net profit of 2,037 million yuan, an increase of 33.47%; net profit after deducting non-attributable mothers was 1,819 million yuan, an increase of 26.65% over the previous year. Among them, Q4 achieved revenue of 4,395 million yuan, an increase of 28.30% over the previous year; net profit attributable to 387 million yuan, an increase of 2234.7% over the previous year; net profit of 338 million, an increase of 1390.6%, the company 2023Q1 achieved revenue of 4,071 million, an increase of 46.13%; and achieved net profit of 396 million, an increase of 3.32% over the same period last year.
Incident comments
Diversified operations contribute to steady growth. At the operating level, various businesses were clearly differentiated in 2022. The glass industry achieved revenue of 10.57 billion yuan and net profit of 1,040 million yuan. Among them, revenue from the floating method and engineered glass sectors fell 22% and remained flat year on year, while net profit fell 76% and increased 408% (the decline in original sheet prices compounded the company's cost reduction and efficiency); the electronics sector was affected by the downturn in the consumer electronics boom and achieved revenue of 1,643 million yuan, down 14% from the previous year. In addition, solar energy and other businesses benefited from high silicon prices, reaching revenue of 3.889 billion yuan in 2022. The year-on-year increase was 257%, and net profit was 974 million. The annual consolidated gross profit margin was 27.58%, down 7.49 pct from the previous year; the expense ratio was 12.01%, down 0.36 pct, mainly due to the dilution of scale effects. Furthermore, asset impairment plus credit impairment losses in the current period were drastically reduced compared to 2021; in the end, a net interest rate of 13.44% was achieved for the full year, an increase of 1.98 pct over the previous year.
Q1 performance continued to grow. Q1 achieved revenue of 4,071 million dollars, an increase of 46.13%, or mainly due to the silicon boom still high and the impact of the company's PV glass production capacity being put into operation; Q1 achieved a gross profit margin of 22.24%, down 6.1 pct, mainly due to the impact of flotation and the slump in photovoltaic glass recording. The rate for the Q1 period was 10.63%, a decrease of 2.31 pcts, of which the management fee rate decreased by 1.69 pcts; other revenue was $25 million, a year-on-year decrease of $23 million, mainly because some subsidiaries had higher amortization of deferred income during the same period; ultimately, attributable net profit was 396 million, up 3.3% from the same period, with a net interest rate of 9.64%, and a decrease of 4.28 pcts.
The production capacity of photovoltaic glass is expanding rapidly. The company has four photovoltaic glass production lines with a melting capacity of 1,200 tons per day in Fengyang, a production line with a melting capacity of 1,200 tons per day in Xianning, and two production lines with a melting capacity of 1,200 tons per day in Beihai. Among them, the Fengyang kiln was ignited in May 2022, the No. 2 kiln was ignited in August 2022, the No. 3 kiln was ignited in December 2022, and the Xianning kiln was ignited in October 2022. The company plans to start production and operation of the Fengyang No. 4 kiln in 2023. The company plans to start production and operation of the Fengyang No. 4 kiln in 2023. Become part of Top three in the industry.
The advantage is obvious. I am optimistic about the company's rapid release of electronic glass. In 2022, the company's high-aluminum second-generation (KK6-P) products continued to expand new customer markets and successfully achieved a breakthrough in high-end screen applications with OLED screens. Furthermore, the company continued to promote product technology upgrades, developed new window glass products for new energy vehicles, and successfully passed customer certification. It is also continuing to strengthen research and development of high-aluminum third-generation and microglass, and end customer verification has achieved good results. The new ultra-thin electronic glass production line invested by Hebei Window with a melting capacity of 110 tons per day was ignited in October 2022, ensuring the future e-glass production capacity base. Investment suggestions: Electronic cover glass is expected to lead the domestic substitution trend; photovoltaic glass may be rapidly released and enter the first tier; engineering glass is positioned at the high end and production capacity is expanding. The estimated performance for 2023 and 2024 is 2,42.9 billion, and the corresponding PE is 8.3 or 6.9 times.
Risk warning
1. The production capacity of cold restoration increased more than expected;
2. The rate of recovery from the completion of real estate is low.