The company publishes three quarterly reports for 2022. In the first three quarters of 2022, the company achieved revenue of 126.515 billion yuan, an increase of 4.52% over the same period last year, and its net profit was 280 million yuan, down 96.92% from the same period last year. In 2022, Q3 achieved operating income of 41.993 billion yuan in the single quarter, down 9.95% from the same period last year, 4.48% from the previous year, and the net profit from the home was-383 million yuan, down 116.59% from the same period last year, narrowing the loss compared with the previous quarter. The net profit after deducting the non-return to the mother was-1.26 billion yuan, down 141.3% from the same period last year.
The price of medium-and large-sized panels has bottomed out and Q4 is expected to pick up gradually in 2022. Since 2022, panel prices have been on a downward trend, the equipment production rate of various panel manufacturers has been revised down, and the industry profit margin has entered the bottom cycle.
TCL Huaxing achieved revenue of 52.1 billion yuan in the first three quarters, an increase of 15% over the same period last year, with a sales area of 3267 million square meters. According to Witsview data, panel prices gradually rebounded from late October 2022. 65xxx 55-inch TV panels rose 1%, 43 inches, 2.1%, 32-inches, 3.8%, and 27max, 23.8, 17.3, and other panel prices narrowed month-on-month. Prices ushered in an inflection point, TV maintained an upward trend, IT decline narrowed compared with the same period last year. According to Omdia data, some downstream manufacturers' inventory basically reached the normal low water level. With the growth of Q4 demand in 2022, downstream manufacturers will gradually increase the purchase of panel products.
The photovoltaic business continues to develop, and the wafer production capacity is gradually expanding. In the first three quarters of 2022, subsidiary TCL Central achieved revenue of 49.84 billion yuan, an increase of 71.35% over the same period last year, and a net profit of 5.49 billion yuan, an increase of 68.94% over the same period last year. The overall profitability exceeded previous market expectations. During the reporting period, the sixth phase of Ningxia 50GW project was put into production smoothly, and the company achieved crystal production capacity 128GW at the end of September 2022, further improving 19GW compared with the end of June. The company and cooperative units jointly invest and build 100000 tons of granular silicon, silicon-based materials projects and 10,000 tons of electronic polysilicon, gradually stabilize the stability of the industrial chain, and improve their competitiveness.
Profit forecast and investment advice: we expect the company to achieve revenue of 1652.9 million yuan in 2024, net profit of 2.6pm, 34.218.836 billion in net profit, and performance forecast corresponding to the current share price PE of 221.8, 17.3, 10.1x in 2024, maintaining the "buy" rating.
Risk hint: panel price fluctuation risk; downstream demand recovery is less than expected risk, silicon price fluctuation risk, industry competition aggravates risk.