Incident: The company released its 2022 annual report and the first quarterly report of 2023. 1) In 2022, the company achieved operating income of 795 million yuan, a year-on-year decrease of 11.01%; net profit attributable to shareholders of listed companies was 160 million yuan, a year-on-year decrease of 11.62%; net profit returned to the mother after deduction was 137 million yuan, a year-on-year decrease of 16.69%. 2) 2023Q1 achieved operating income of 227 million yuan, an increase of 2.95% over the previous year; net profit attributable to shareholders of listed companies was 38 million yuan, a decrease of 17.14% over the previous year; net profit returned to the mother after deduction was 34 million yuan, a decrease of 15.88% over the previous year.
Revenue improved month-on-month, and the impact of the pandemic was gradually being eliminated. In 2022, due to the impact of the epidemic and macroeconomic downturn, the delivery of the company's main product, screw compressors, was negatively affected to a certain extent in the fourth quarter. 2022Q4 achieved sales revenue of 160 million, down 7.34% year on year and 22.7% month on month, mainly due to the large decline in shipments in the fourth quarter. After the impact of the epidemic was gradually eliminated, the company's deliveries returned to normal. 2023Q1 achieved sales revenue of 227 million yuan, an increase of 2.95% over the previous year and an increase of 41.7% over the previous month. Revenue improved markedly from month to month. Currently, it has maintained a good delivery pace.
The share of low-power models has increased, and overall gross margin has declined. On the profit side, the company's gross profit margin in 2022 was 32.10%, the 2023Q1 gross profit margin was 30.69%, and the company's gross margin of 2023Q1 declined compared to the full year of 2022. Corresponsively, the company's net interest rate to the mother in 2022 was 20.10%, while the net interest rate returned to the mother in 2023Q1 was 16.92%, mainly due to the decline in gross margin, which led to a decline in net interest rate to the mother. This year, the company launched the more cost-effective Fuxing ES series for small and medium-sized enterprises to seize market share in the small to medium power segment, which also led to a decrease in overall gross margin. In the future, as the share of sales of the company's high-end products increases, gross margin is expected to gradually pick up.
It is proposed to implement equity incentives to help the company grow. The company plans to implement a stock incentive plan to grant no more than 7,578.24 million restricted shares to incentive recipients, accounting for 2% of the company's total share capital. The specific assessment targets are: revenue growth of no less than 10% in 2023 compared to 2022, or net profit growth of no less than 8%; revenue growth of no less than 21% from 2024 compared to 2022, or net profit growth of no less than 16%; revenue growth of no less than 33% compared to 2025 compared to 2022, or net profit growth of not less than 25%. The company's equity incentive plan binds the core interests of employees and is expected to further help the company's future performance growth.
Profit forecast and investment advice: As the company's demand for screw air compressors bottomed out and revenue resumed quarterly growth, we expect the company's revenue from 2023 to 2025 to be 10.11/1261/1,563 billion yuan respectively, +27.17%/+24.72%/+23.98%; the net profit of the mother was 2.06/259/323 million, respectively, +28.97%/+25.65%/+24.75% year on year; EPS was 0.54/0.68/0.85 yuan, corresponding to PE, corresponding to PE It's 17/14/11 times. Maintain a “buy” rating.
Risk warning: risk of fluctuations in raw material prices; risk of macroeconomic fluctuations; risk of increased market competition