On April 14, 2023, the company disclosed the 2022 annual performance report and the performance forecast for the first quarter of 2023. In 2022, it achieved revenue of 1,824 million yuan, an increase of 2.86% over the previous year, and achieved net profit of 359 million yuan, a decrease of 27.68% over the previous year; 4Q22 achieved revenue of 539 million yuan, an increase of 68.44% over the previous year; achieved Guimo's net profit of 66 million yuan, a decrease of 26.67% over the previous year; 1Q23 expects to achieve Guimo's net profit of 0.25-35 million yuan, -75% from the previous year -65%, and the net profit after deduction is expected to be 0.22 to 31 million yuan, -75% to -65% compared with the same period last year.
Revenue increased slightly in 2022, and the profit side was dragged down by sluggish downstream demand and lower operating rates. The company achieved total revenue of 1,824 billion yuan for the full year of '22, +2.86% year on year. Mainly because inventory removal for downstream customers was not completed in '22. The thyristor business declined sharply due to weak demand in the inventory and downstream consumer sector. The protective devices and MOSFET business grew, partially offsetting the impact of the decline in the thyristor business on revenue. On the profit side, the company's net profit to the mother in '22 was 359 million yuan, a decrease of 27.68% over the same period last year; net profit of the company's return to the mother after deduction was 300 million yuan, -34.54% over the same period last year. From 2022 to 1Q2023, downstream consumer electronics of power devices recovered weakly, the company's operating rate fell short of expectations, and product unit costs rose, leading to a decline in overall gross margin.
1Q23 Downstream demand is divided, thyristor performance continues to be under pressure, and investment in automotive regulation and MOS product development continues to increase. 1) More than 30% of the company's thyristor business downstream are consumer electronics customers. In 1Q23, consumer electronics demand continued to be sluggish and industry recovery was not obvious. Prices of traditional business products such as thyristors and protective devices were further reduced slightly; 2) The company continued to increase investment in R&D of new products, and MOSFET products achieved significant growth. The company invested a large amount of R&D expenses and personnel, gradually enriched the models of car-grade products, received recognition from many Tier 1 and Tier 2 automobile customers at home and abroad, and formed batch supply. 3) The company integrated sales platforms and resources to establish GSM (Global Marketing Center), which will help the company's sales network provide customers with high-quality sales services more efficiently and quickly.
Net profit attributable to the parent in 22-24 is estimated to be 359 million, 4.96 million yuan and 648 million yuan respectively, the corresponding EPS is 0.49/0.67/0.88 yuan respectively, and the current price of the company's stock is valued 49/35/27 times that of PE, maintaining the “buy” rating.
Risk warning
Risk of technology iterations and product upgrades falling short of expectations; risk of increased market competition; risk of dependence on imported equipment; risk of pressure on convertible debt-for-equity swaps.