Main points of investment
Q3 added 10 new household photovoltaic power stations, digital means to improve household photovoltaic efficiency: at present, the proportion of the group's new energy business in operating revenue has increased to 20.3% of 2022Q3. The total installed scale of the Group's distributed photovoltaic power stations is one of the leaders in the industry. during the period, more than 100000 household photovoltaic power stations have been put into operation and connected to the grid, and more than 150,000 household photovoltaic power stations have been built and operated. In addition, the intelligent operation and maintenance system independently developed by the group realizes the real-time digital management of household photovoltaic power stations and maximizes the benefits of household photovoltaic power stations.
Overall turnover growth, intelligent system technology business overseas market strength: 2022Q3 Group's overall turnover of 38.419 billion yuan, an increase of 7% over the same period last year. The turnover of intelligent TV system products (Chinese market) was 6.98 billion yuan, down 21.8% from the same period last year, and the sales volume was 7.8% lower than the same period last year; the turnover of intelligent TV system products (overseas markets) was 6.137 billion yuan, down 15.7% from the same period last year, but sales increased by 14.7% year-on-year. The turnover of Chinese mainland market / overseas market of intelligent system technology business was 5168.18 billion yuan, an increase of 5.6% over the same period last year. The new energy business grew rapidly, with a turnover of 7.821 billion yuan, a substantial increase of 257.1% over the same period last year.
Structural factors led to a decline in gross profit margin and an increase in R & D costs: gross profit margin was 15.7%, down 0.6pct from the same period last year, mainly due to increased inventory levels, compressing gross margin space, and rising pressure on raw material costs; at the same time, the gross profit margin of the new energy business is lower than that of other sectors of the group, and the sharp increase in its sales will lead to a slight decline in the gross profit margin of the group as a whole. During the period, the group's R & D expenditure was 1.549 billion yuan, an increase of 5% over the same period last year.
Our point of view: the company shifts its focus on home appliances to high-end TV products, adjusts sales unit prices to increase market share, and develops the global market through publicity. The new energy business combines digitization with new energy to improve product efficiency and consolidate the leading position in the industry. It is optimistic about the sales potential of the company in the process of industrial transformation and market expansion, and the pressure on raw material costs is reduced after the panel market enters the adaptation period. as well as the profitability of the group after adopting fine management, strengthening sales price control and increasing the proportion of gross profit products.
Risk tips: 1) intensified competition in the home appliance market; 2) photovoltaic business development is not up to expectations; 3) supply chain problems continue; 4) raw material price fluctuations; 5) business fluctuations.