Event
According to the company's mid-2023 report, Q2 achieved revenue of 1.346 billion yuan, a growth rate of 24%, 11%, 24 million yuan, and a growth rate of 45%, 31% respectively. In the first half of the year, the company achieved revenue of 2.562 billion yuan, an increase of 17.3% over the same period last year, and net profit of 60 million yuan, an increase of 39.3% over the same period last year, deducting non-return net profit of 81 million yuan, an increase of 48.7% over the same period last year, achieving basic earnings per share of 0.45 yuan.
Our analysis and judgment
(1) the performance is in line with expectations, and the intelligent cockpit and charging pile business is expanding rapidly. In the first half of the year, the revenue of the company's automobile intelligent cockpit parts and new energy automobile accessories, charging and distribution business were 1.861 billion yuan and 355 million yuan respectively, + 15.51% and 76.29% respectively compared with the same period last year.
In terms of products, intelligent cockpit components are mainly air management systems and luxury smart accessories, with luxury cars such as ABB accounting for more than 70 per cent. Thanks to the growth of the luxury car market so far this year, smart cockpit components business has achieved steady growth. In the first half of the year, the company's interior trim entered the Tesla, Inc. supply system, covering 3/X/S and other models, and is expected to start supply by the end of 2023, with rich reserves of new products and new customers. In the charging pile business, 1) the company introduces car charging, private charging and other products, which accounts for about 80% 90% of the total. 2) supporting mainframe factory DC fast charging products or charging stations, 3) in the export market, supporting SAIC, polar krypton and other models are exported, or with matching Tesla, Inc. and other direct sales channels. With the help of the company's channel advantage, the charging pile business has a significant volume.
(2) the gross profit margin of the intelligent cockpit business has increased significantly driven by the scale effect, and the company's overall gross profit margin is expected to continue to rise steadily in the second half of the year. In the first half of the year, the overall gross profit margin of the company was 24.38%, compared with the same period last year, the single-quarter gross profit margin of Q2 was 24.13%, year-on-year + 2.60pct, month-on-month-0.53pct. In the first half of the year, the gross profit margin of intelligent cockpit components, new energy automobile accessories, charging and distribution business and other and weighing products was 23.72% 22.63% and 30.84% respectively, which was + 2.68pct/+0.92pct/+3.21pct respectively compared with the same period last year. The gross profit margin of intelligent cockpit components increased significantly, which is expected to be mainly driven by economies of scale. New energy automobile accessories, charging and distribution business is in a period of rapid growth. Customer expansion and capacity climbing are carried out at the same time, and the increase in gross profit margin is limited. It is expected that after the subsequent increase in business volume, gross profit margin will also benefit from the steady increase in economies of scale.
(3) continue to promote global capacity expansion, focusing on North American customers. The company issued a convertible bond plan to raise 700 million yuan, of which 340 million will be used for capacity improvement projects in Mexico, Ningbo, Tianjin and other places, and 150 million for destination charging stations (phase II). The company has successfully cut into the Tesla, Inc. industrial chain, and some orders will go into mass production in the second half of the year, bringing new growth.
Investment advice: 1) the company currently holds a 63% stake in Qunsheng Qunying, and according to the plan, it will further acquire its remaining equity and continue to enhance strategic synergy. 2) the company will increase its profitability by increasing the volume of charging piles and intelligent cockpit products. It is estimated that the company's revenue in 2023 to 2025 will be 5671 yuan, 66.22 / 7.616 billion yuan, and the net profit to the parent will be 1.70 million yuan, and the corresponding earnings per share will be 1.29 pound 1.53 plus 1.77 yuan respectively. Maintain the recommended rating.
Risk tips: 1, the risk that the sales volume of downstream customers is less than expected; 2, the risk of rising raw material prices; 3, the risk that production capacity expansion is less than expected.