Incident Overview

The company released its 2022 annual report and quarterly report for 23. In 2022, the company achieved revenue of 4,567 million yuan, an increase of 2.98%, net profit of 307 million yuan, a year-on-year decrease of 37.41%, a year-on-year net profit of 483 million yuan, an increase of 10.73% over the previous year, gross profit of 23.62%, an increase of 131 pct over the previous year. According to estimates, the company achieved revenue of 1,204 million yuan, a year-on-year increase of 2.03%, and Guimo's net profit of -108 million yuan, excluding net profit of 112 million yuan, a year-on-year increase of 112 million yuan, an increase over the previous year 12.24%, gross profit margin 27.77%, a year-on-year increase of 6.48pct.

The company's 2301 achieved revenue of 1,006 million yuan, a year-on-year decrease of 4.86%; net profit of Fumo was 131 million yuan, a year-on-year decrease of 12.06%; net profit after deducting non-return mother's net profit was 116 million yuan, an increase of 5.69% over the previous year; gross profit margin was 25.95%, an increase of 2.97p ct over the previous year.

Revenue grew steadily in '22, and gross margin is expected to continue to rise

In 2022, the company achieved revenue of 4,567 million yuan, an increase of 2.98% over the previous year. Revenue growth was steady throughout the year. The net profit of the mother was 307 million yuan, a decrease of 37.41% over the previous year. The main reason was that the company stopped implementing equity incentives, and the accelerated share payments confirmed by the expedited exercise affected net profit of about 226 million yuan. The company's gross profit margin for the full year of '22 was 23.62%, an increase of 1.31pct over the previous year, of which 2204 gross profit margin was 27.77%, a year-on-year increase of 6.48 pct, the gross profit margin of 2301 was 25.95%, an increase of 2.97 pct over the previous year. The company's higher gross margin after 2204 was mainly due to the company's continuous improvement in the digitization process. After Q4, the company's marginal production cost was higher, and the company's overall cost advantage will continue to decline rapidly. Improve.

Actively lay out the server field, with sufficient momentum for subsequent growth

Data centers and servers are the company's key strategic circuit. The main products are general purpose server CPU motherboards, A1 acceleration cards, power supplies, and various other supporting boards and high-speed computers. The company entered the Intel and AMD next-generation server supplier invitation catalogue in 2022 and is currently passing the index tests for its various products. The company's main customers in the server field include HPE, ZTE, Xinhua 3, Wave, Foxconn, Renbao, Guangda, Heshuo, Inventec, Weichuang, Delta, Zhibang, Zhonglei, AWS, ByteDance, Nvidia, etc.; in terms of new product layout, the company focuses on high-end server product development and is currently introducing Eagle Stream and Birch Stream products to be produced in small batches; except in the server field, The company is also actively developing customers and developing technology in the fields of automotive electronics, new energy, etc., laying a solid foundation for the company's long-term growth.

Investment advice

Considering the uncertainty of the surrounding environment, we expect the company's net profit to reach 703/903/1,253 million yuan in 2023/2024/2025 (previously estimated net profit to the mother in 23/24 was 717.933 million yuan). According to the closing price of 2023/4/28 of 40.17 yuan/share, PE is 18/14/10 times, maintaining the “buy” rating.

Risk warning

New production capacity fell short of expectations, downstream demand fell short of expectations, market development fell short of expectations, and the risk of fluctuations in the surrounding environment.