This report is read as follows:
The company continues to promote the credit business of used cars and new energy vehicles, which promotes the high growth of the company's performance, with an adjusted net profit of 152% year-on-year in 2022. The company has a wide layout of low-line cities and strong innovation ability, and has a bright future in the new energy car market in the future.
Summary:
Maintain the company's "overweight" rating and maintain the target price of HK $1.82, corresponding to 0.67xP/B in 2023. The company's profitability increased significantly in 2022. The operating income was 5.202 billion yuan (RMB, the same below), an increase of 49% over the same period last year; and the adjusted net profit was 688 million, an increase of 152% over the same period last year, in line with expectations. Maintain the company's target price of HK $1.82, corresponding to the 2023 0.67xP/B, and maintain the company's "overweight" rating.
The company promotes the credit business of used cars and new energy vehicles, which promotes the high performance growth. In 2022, the company's trading platform business income was 3.984 billion yuan, an increase of 73% over the same period last year, which is the main driving force of performance growth, and its contribution to revenue growth is 99%. Among them, loans contributed to a 62% increase in service revenue, accounting for 70% of income growth. The increase in service revenue due to loans is mainly due to the increase in the number of used car financing transactions with higher income in the total number of auto financing transactions.
There were 556000 transactions in 2022, an increase of 5% over the same period last year, of which used cars accounted for 52%, up 7pct from the same period last year, while the number of used car transactions reached 290000, up 23% from the same period last year. The customers in the used car credit market are more sinking, the risk control ability is higher, and there are fewer competitors, so the front-end pricing of the business is higher, and when the cost of capital is close, the profit of used cars is higher. The rapid growth of the used car business with higher profits has become the main reason for the high performance of the company. In addition, the rapid development of new energy vehicles has become the company's new growth pole. With the continuous increase in the penetration of new energy vehicles, the company's new energy vehicle financing transaction volume has increased by 153% to 35000 vehicles compared with the same period last year.
The company has a wide layout in low-line cities, strong product innovation ability, and has a bright future in the new energy vehicle credit market. At present, the company has 4,000 + ground service personnel serving more than 36000 stores across the country, especially in low-line cities. As new energy vehicles become more and more attractive to consumers in low-line urban and rural markets, the company's advantages are becoming more and more obvious. In addition, new energy vehicles are different from traditional fuel vehicles, and new business models such as BaaS (battery as a service) have emerged to lower the threshold for car purchase. The company has strong innovation ability, and explores business opportunities in this field through a variety of business models, including battery leasing, battery replacement, etc., based on the extensive layout of low-line cities and strong innovation capabilities, the company has a bright future in the new energy vehicle market.
Catalyst: the new energy automobile financial market is growing rapidly.
Risk hint: the company's used car financial business is not as expected; the overdue rate is rising.