Event: the company released its mid-2022 report on August 29: the company's 2022H1 realized revenue of 712 million yuan, down 2.43% from the same period last year, realized net profit of 118 million yuan, down 8.87% from the same period last year, and deducted 99 million yuan from non-home net profit, down 19.88% from the same period last year.
The epidemic affects automobile production and marketing, and the company's performance is under short-term pressure. On the revenue side, the company's 2022H1 achieved revenue of 712 million yuan, down 2.43% from the same period last year. Revenue in the second quarter was 303 million yuan, down 16.75% from the same period last year, and 25.93% from the previous year. Due to the impact of the epidemic in many places in the first half of the year, automobile production and sales were affected, and the company's revenue side was under pressure. On the profit side, the company's 2022H1 realized 118 million yuan in net profit, down 8.87% from the same period last year, 99 million yuan in net profit deducted from the same period last year, down 19.88% from the same period last year, and 36 million yuan in the second quarter, down 43.13% from the same period last year, 56.38% from the previous year, and 22 million yuan in net profit deducted from the same period last year, down 63.29% from the same period last year and 70.88% from the previous year. As the scale of revenue shrinks, the profit end of the company has declined by a large margin. In terms of profit margin, the company's 2022H1 gross profit margin is 37.32% (year-on-year-2.75pct), an increase in 2.06pct compared to 2021, and a net profit margin of 16.53% (year-on-year-1.17%), an increase of 2.71% over 2021.
The aerospace business is growing at a high speed and its profitability has been greatly improved. In terms of business, the company's aerospace parts business achieved revenue of 122 million yuan, an increase of 67.65% over the same period last year, and a gross profit margin of 71.05%, which improved 15.80pct over the same period last year. Hao Yiqiang, a subsidiary, achieved revenue of 122 million yuan, an increase of 67.62% over the same period last year, and a net profit of 61 million yuan, an increase of 89.84% over the same period last year. Aerospace downstream demand continued to be strong, and the company's aerospace parts business continued to grow at a high speed. The revenue of the automobile business reached 591 million yuan, down 10.17% from the same period last year, the gross profit margin was 30.43%, and the 7.96pct was lower than the same period last year, of which the revenue from the new energy vehicle business increased by 123% over the same period last year, the revenue from the passenger vehicle business increased by 1% over the same period last year, and the revenue from the heavy truck business of commercial vehicles dropped by 49%. The new energy vehicle business focused by the company continued to maintain rapid growth. The traditional business of commercial vehicles and passenger vehicles has been seriously affected by the epidemic. In the same period, China's automobile production and sales fell 3.7% and 6.6% respectively compared with the same period last year.
During the period of good cost control, continue to increase investment in research and development. The company's 2022H1 accounts for 9.52% (year-on-year-1.33pct), of which the sales expense rate, management expense rate and financial expense rate are 1.45% (year-on-year + 0.36pct), 6.20% (year-on-year-1.66pct), 1.87% (year-on-year-0.03pct). Under the pressure of performance, the company's expense control is good, and the operation and management continues to be sound. At the same time, the company's 2022H1 R & D expenditure is 52 million yuan, an increase of 1.82% over the same period last year, and the R & D expenditure rate is 7.33% (year-on-year + 1.82pct). The company continues to increase R & D investment, which is conducive to enhancing the competitiveness of the company's products.
We will focus on the distribution of new energy vehicles, and the production capacity of differential assemblies will be accelerated. The differential business is one of the most important core businesses of the company in the future. the company will invest and build in two phases according to the supporting capacity of 10 million sets of differential assemblies per year. The first phase plans to form an annual production capacity of 5 million sets of differential assemblies in 2025, and the second phase plans to form an annual production capacity of 10 million sets of differential assemblies in 2030. During the reporting period, the company cooperated with many new energy vehicle companies, such as Geely, NIO Inc., ideal, Dongfeng, Great Wall and so on, and got a number of new energy vehicle differential project orders from a number of important customers. after the project volume, the company's revenue share of new energy automobile parts will further increase. At the same time, the introduction of Denmark DISA casting line has formed the casting and machining capacity of 50,000 tons of differential shell per year, with a view to building the company into a comprehensive competitive differential supplier integrating shell casting, machining, half-tooth forging, machining, heat treatment and assembly assembly.
The construction of aerospace production capacity is progressing steadily, and the performance is expected to continue to be realized. Subsidiary Hao Yiqiang in the "14th five-year Plan" of national defense industry
Under the background of great development, we have obtained a number of important project orders for Chengfei, involving structural parts, standard parts, sheet metal parts and other products.
In terms of production capacity, the first phase of the precision manufacturing plant for aviation parts has initially formed production capacity. Hao Yiqiang upgraded the original plant and equipment, which greatly improved the production efficiency and production capacity. The proportion of aviation parts business in the company's operating income and profits will further increase. At the same time, the subsidiary Hao Neng Aerospace has established a close relationship with some commercial aerospace head enterprises, and some projects have entered the stage of trial and production, which is expected to significantly increase the company's performance.
Investment suggestion: the rebound of the epidemic in many places in the country has a great impact on the automobile industry in the first half of the year. We downgrade the company's profit forecast. We estimate that the company's income from 2022 to 2024 will be 1.645 million 20.38 billion yuan (the previous value is 17.32 million yuan 21.38 / 2.458 billion yuan), and the net profit of returning mother will be 2.88 million yuan 3.93 billion yuan respectively (the previous value is 404 million yuan 4.1611 million yuan). The corresponding PE are 17x, 13x and 10x, respectively. The company continues to deepen the "automobile + aerospace" dual main business layout, is expected to achieve great-leap-forward development, maintain the "buy" rating.
Risk reminder events: military orders are not as expected; the risk of the epidemic is expanding; profit forecasts are not as expected.