Performance review
The performance in 2022 exceeded our expectations
The company announced its 2022 results: revenue of 4.817 billion yuan in 2022,-1.5% year on year, and net profit of 86 million yuan, + 72.2% of the same period last year. 4Q22 income 1.423 billion yuan, year-on-year-3.0%, month-on-month + 17.7%; return to mother net profit-440000 yuan, year-on-year + 58 million yuan, month-on-month ratio-101.0%. We believe that the company's performance has exceeded expectations, benefiting from the growth of the new energy business. The non-return net profit deducted in 2022 is 156 million yuan, which is in the upper limit of performance forecast.
Trend of development
New energy business growth rate is eye-catching, two-line parallel to create a long-term growth path. The company's new energy business revenue reached 556 million yuan, + 142.53% compared with the same period last year, mainly due to the demand for new projects such as charging piles and wire harness, as well as smooth customer expansion; double-line parallel pull new energy business revenue share increased from 4.69% to 11.54%. Product dimension: Qunying further optimizes the product layout, completes the product research and development of DC charging pile, covering intelligent charging pile and in-car charging and distribution system. Customer dimension: "mainframe factory cooperation + building independent brands" to promote the two-line parallel of new energy business, covering Volkswagen, Audi, Honeycomb Energy, Geely, Chery and other mainframe factories one after another; independent brands have gone to Europe and the United States to create a new energy charging industry chain. In terms of new orders: the total amount of new energy business life cycle orders is close to 15 billion yuan, injecting new impetus into the company's future development. We believe that with the rich layout of the company's new energy charging piles and the volume of orders, the company's performance is expected to continue to grow rapidly.
The performance commitment target continues to be overfulfilled. At the end of 2020, the company acquired Qunsheng Qunying's performance commitment:
The annual net profit in 21-22-23 is not less than 1.9 million yuan. 211122 average annual Sheng Qunying accumulated deduction of non-net profit of 539 million yuan, exceeding the performance commitment. Looking forward to 2023, we continue to believe that Qunying is expected to complete its three-year performance commitment and lay a solid foundation for follow-up development, benefiting from the trend of new energy business going out to sea and high-end automotive interiors.
Fund-raising projects help expand the product matrix and open up growth space for going out to sea. The company conducted a private placement at the price of 28.03 yuan per share in February 2022, raising 600 million yuan for the layout charging pile business, and is committed to polishing charging pile products compatible with the standards of the United States, the European Union, Japan and other regional standards, so as to lay a good foundation for charging and distribution products to go to sea. In 2022, the company's charging pile products have passed the European standard certification, and are currently promoting the American standard product certification. With the help of the advantage of globalization, the company actively promotes the expansion of new energy production lines in overseas production bases, so as to lay a capacity foundation for new energy business to go out to sea. We believe that the company is expected to fully benefit from the growth space of new energy charging and distribution construction, open overseas markets with highly compatible charging pile products, and achieve rapid growth.
Profit forecast and valuation
Keep the profit forecast for 2023max 2024 unchanged. The current share price corresponds to a price-to-earnings ratio of 19.5 times 2024 / 14.9 times earnings for 2023 Universe. We maintain an outperform industry rating and a list price of 37.49 yuan, corresponding to a price-to-earnings ratio of 25.1 times 2024 / 19.1 times earnings in 2023, with an upside range of 28.5% over the current share price.
Risk
Geopolitical risks, the risk of rising raw material prices, and the penetration of high-end models is less than expected.