Event: the company released 22-year results KuaiBao, 2022 revenue of 927 million yuan, year-on-year + 27.58%; return to the mother net profit of 162 million yuan, + 32.26%; deduction of non-return net profit of 151 million yuan, + 34.47%.

The performance exceeded our expectations. After adding back the share payment fee, the company realized the net profit of 170 million yuan, + 39.53% compared with the same period last year, and deducted the non-return net profit of 160 million yuan, + 42.39% compared with the same period last year.

The net interest rate of 22Q4 has increased significantly, and the income has declined from the previous month. From the perspective of 22Q4 alone, the company achieved income of 259 million yuan, + 19.68% year-on-year,-4.32% month-on-month; net profit of 54 million yuan, + 81.24%, + 30.00%; deduction of non-return net profit of 53 million yuan, + 140.74%, month-on-month + 58.19%. The company's 22Q4 revenue has declined month-on-month, which we believe is due to the epidemic affecting factory opening and lower-than-expected shipments. On the profit side, 22Q4's net interest rate reached 20.65%, an increase of 5.45pcts compared with 22Q3.

We believe that the main reason is that companies benefit from preferential tax policies and the elimination of exchange rate effects.

The recovery of consumer demand is expected and the release of new products is just around the corner. Affected by the epidemic and other factors in 22, consumer demand is weak, and recovery is expected in 23 years. The company is deeply bound with Apple Inc to obtain a number of new product precision parts fixed points, 23 years of new product volume, is expected to fully promote the growth of the company. The company has a deep accumulation in the field of precision processing, unique technology has a cost advantage, and the share is expected to continue to increase.

The high demand for photovoltaic is expected to contribute to performance elasticity. The company acquired strong core technology to cut into the photovoltaic Kumgang wire bus track, with a significant increase in production capacity in 23 years. With the decline in silicon prices, photovoltaic downstream demand is marginal upward, the company is expected to fully benefit. In addition, the company is also looking forward to the layout of the photovoltaic screen track with large market space and good pattern, which is expected to contribute to the important business increment.

Investment suggestion: we expect the net profit of 2022 and 2023 for 2024 to be 1.62, 2.47 / 327 million yuan and 1.88 yuan per share, respectively, for EPS, corresponding to the closing price on February 23, 2023, PE is 25.87,16.94 and 12.79 times. Maintain the "overweight" rating.

Risk hints: downstream demand is less than expected risk; single major customer risk; product technology iteration risk; industry competition intensifies.