Incidents:
Recently, the company released its 2022 annual report and its performance forecast for the first quarter of 2023, achieving revenue of 1,075 million yuan (YOY +13.42%) in 2022 and net profit of 121 million yuan (YOY +29.70%); 2023Q1 expects revenue to increase by about 110 million yuan over the same period last year, +41% over the same period last year, to achieve net profit of 44 million yuan to 46 million yuan (YOY +30.32%-36.24%). The comments on this are as follows:
Profitability increased, and the cost rate remained stable during the period. In 2022, the company's gross profit margin was 24.08%, +1.54 pct year on year, net interest rate was 11.24%, +1.5pct year on year, mainly due to the company's high-margin new energy high-end equipment business revenue increasing 102.80% year on year, accounting for 43.87% of revenue, and gross margin was 25.95%, +2.55pct year on year. The company's period fee rate in 2022 was 9.35%, compared to -0.44pct compared to -0.44pct, which remained stable. The company has received many orders from Xinte, GCL, Hongyuan Energy Technology, etc. in the photovoltaic field. The company is expected to make further breakthroughs in high-end new energy equipment and enhance profitability.
Focus on heavy pressure vessels, and autonomous and controllable nuclear power opens up room for growth. With its traditional main business, the company stabilized its market share in refining chemicals, coal chemicals, etc., successfully expanded more than 20 new customers, including Xinyi New Energy, Shandong Zhongtai, and Jingyuan Coal and Power, and successfully acquired many products such as million-ton methanol synthesis towers and national energy gasifiers. In the new energy business, the company's orders for major process equipment in the photovoltaic field have increased markedly; in the nuclear power sector, mass production of ANT-12A new fuel transport containers has become normalized, helping China's nuclear power industry to be autonomous and controlled.
Increase production capacity and lay out the hydrogen energy industry chain. Recently, the company announced a fixed increase target to use raised capital to solve the company's production capacity bottleneck. The company plans to invest about 125 million yuan in hydrogen energy and special materials R&D center construction projects to help the company enter hydrogen production, hydrogen storage and hydrogenation, help adjust the industrial structure, and improve the company's industrial layout.
Investment recommendations and ratings: The company's net profit for 2023-2025 is estimated to be 181 million, 260 million and 325 million respectively. The corresponding PE is 22x, 15x, and 12x respectively, covering the “increase in holdings” rating for the first time.
Risk warning: expansion of nuclear power production falls short of expectations; expansion of new markets falls short of expectations