Event: the company released its annual report of 2022. In 2022, the company achieved operating income of 915 million yuan, an increase of 51.59% over the same period last year, a net profit of 90.5238 million yuan, an increase of 12.45% over the same period last year, and a non-net profit of 73.3675 million yuan, an increase of 34.47%.

Strong project delivery capacity, year-on-year high revenue growth: the company overcame the impact of the external environment, the smooth delivery of a number of intelligent warehousing projects, year-on-year high revenue growth. Due to the influence of the purchasing end of the newly developed new energy, agriculture and animal husbandry, clothing and other industries, the company's annual gross profit margin in 2022 was 27.46%, down 7.06pct from the same period last year. The company's net interest rate in 2022 was 9.89%, down 3.44pct from the same period last year. The company enhanced internal cost reduction and efficiency. In 2022, the rate of sales, management and R & D expenditure decreased by 2.43,0.93 and 2.03 pct compared with the same period last year.

The application field is developed smoothly and the orders on hand are sufficient: the company continues to obtain orders in aerospace, communications equipment, tobacco, medicine, new energy, construction machinery, food, e-commerce and other industries, continue to maintain high customer viscosity, and successfully develop the liquor industry. The company has made major breakthroughs in aerospace, tobacco, military industry, medicine and other industries. in 2022, the total amount of orders in the aerospace industry is 198 million, the order volume in the military industry is 97 million yuan, and the sales volume of the tobacco industry is more than 100 million yuan. The company has continuously obtained orders in the raw material library and pole production of new energy, developed a special stacker equipment for the chemical component and obtained a case application. The total amount of newly signed orders of the company in 2022 is 1.167 billion yuan, and the unrecognized revenue of existing orders is 1.043 billion yuan (statistics of more than 100000 yuan of contract amount, excluding after-sales service and agency operation), of which 1.008 billion yuan has been signed, and the contract amount that has been won is 35 million yuan. The order on hand is full. The company's intelligent logistics equipment production test base has completed the construction of the main body of the project, and some production lines have been put into trial operation, which can support 2 billion yuan of production capacity and ensure order delivery capacity.

Broaden the product R & D boundaries, positioning high-end customers: the company attaches great importance to product R & D, R & D investment of 75 million yuan in 2022, R & D expenditure rate of 8.19%. The company extends the product R & D boundary vertically to the core components of logistics equipment, independently develops a number of key components and successfully applies them. The company's intelligent software system and intelligent products have basically achieved independent production, and the product self-research and self-production rate has reached 80%, with cost advantage.

The company focuses on the high-end market of head customers, and the top five customers before 2022, including Ningde Times, Muyuan shares, Wanyitong, etc., improve profitability through high value-added customized solutions and companion services. With the continuous progress of the company's product technology and the promotion of marketing strategy, it is expected to continue to obtain orders in the future.

Profit forecast, valuation and rating: considering the fluctuations in the profitability and order delivery cycle of the company's newly developed application industry, we downgrade the company's 2023-2024 net profit forecast of 1.31 yuan and 167 million yuan (22.94% and 25.11% respectively), and the new 2025 net profit forecast is 207 million yuan, corresponding to EPS 1.81,2.30,2.85 yuan, corresponding to 20x, 16x, 13x. Maintain a "buy" rating.

Risk tips: macro environmental risk; unsustainable risk of customer orders; bad debt risk of accounts receivable and contract assets; stock price fluctuation risk of secondary new shares.