Event: according to the company's mid-2022 report, H1 achieved 1.29 billion yuan in operating income in 2022, an increase of 19.04% over the same period last year, a net profit of 101 million yuan, an increase of 8.82% over the same period last year, and 94 million yuan in non-net profit, an increase of 36.27% over the same period last year. Of this total, 2022Q2 achieved a revenue of 843 million yuan in a single quarter, an increase of 34.85% over the same period last year, and a net profit of 74 million yuan, an increase of 20.41% over the same period last year. The performance is in line with expectations.
Gross profit margin is slightly under pressure, power lithium equipment business early expansion investment: according to the company report, H1 company gross profit margin of 35.35% in 2022, down 0.33pct, net profit rate of 10.9%, down 1.18pct from the same period last year.
The pressure on the company's gross profit margin is mainly due to the large investment in the early stage of the business development of power lithium power equipment and the impact of the epidemic on the company's business, which leads to the loss of the new energy subsidiary and lowers the company's comprehensive gross profit margin. We expect that with the improvement of the operating conditions of the new energy subsidiary and the gradual recovery of the epidemic situation in the second half of the year, the company's gross profit margin will pick up somewhat.
The expense rate decreased significantly during the period, and the exchange gains brought significant financial income: according to the company report, the expense rate during the year H1 in 2022 was 21.42%, a decrease of 2.30pct compared with the same period last year. Among them, the management expense rate was 4.54%, down from the same period last year 0.91pct, the R & D expense rate was 13.69%, the year-on-year increase in 0.24pct and sales expense rate was 5.4%, the year-on-year increase in 0.17pct and financial expense rate was-2.21%, and the decline in 1.79pct. The increase in R & D expenses and sales expenses is mainly due to the increase in the salary of employees caused by the increase of R & D personnel and after-sales personnel. The exchange earnings generated by exchange rate fluctuations brought 24 million yuan of financial income to the company, and the rate of financial expenses decreased significantly.
Lithium power equipment has sufficient orders on hand, and the new energy business has increased sharply: from the perspective of business, the mobile terminal business achieved sales revenue of 570 million yuan, down 7.36% from the same period last year; the new energy business achieved sales revenue of 461 million yuan, an increase of 50.52% over the same period last year; precision parts and moulds business achieved 113 million yuan in sales revenue, an increase of 13.49% over the same period last year.
In the field of new energy, the company continues to follow up the market demand, strengthen research and development, and launch iterative high-speed all-in-one machines, assembly lines and integrated capacity equipment and other products. By the end of the reporting period, the company's new energy business orders on hand exceeded 2 billion yuan. Among them, the company's stacking machine is in the industry leading level in lamination efficiency and alignment accuracy, and the company announced again on July 25 that it has won the bid for honeycomb energy stacking machine project totaling 505 million yuan so far. With the improvement of the competitiveness of the company's products, it is expected that the lithium equipment business will continue to grow in the future.
AR/VR equipment is the core equipment of meta-universe, and the company has the first-mover advantage: the company currently provides functional inspection equipment for consumer AR/VR terminal products of industry brand customers, and the company's technology reserve and product supply are in a leading position in the industry. In 2021, the company's AR/VR-related equipment revenue was 74 million yuan, an increase of 46.2% over the same period last year. Customers include Apple Inc, Meta and other companies. In the future, with the launch of Apple Inc MR, it is expected to further promote the AR/VR wave, and the company's AR/VR-related equipment revenue is also expected to grow in volume.
Investment suggestions: we forecast revenue of 28.36,36.77 and 4.372 billion yuan from 2022 to 2024, an increase of 31.2%, 29.7% and 18.9% respectively over the same period last year, and net profit of 2.47,3.67 and 477 million yuan respectively, up 603.6%, 48.9% and 29.9% over the same period last year. Earnings per share are 0.60,0.89,1.16 yuan respectively. Corresponding to the closing price on August 26, the dynamic PE of the company from 2022 to 2024 is 32.2,21.6 and 16.6 times respectively, and the proposal of increasing holdings is given for the first time.
Risk hint: the production expansion progress of the downstream battery plant is not as expected, the iterative speed of the company's products is not as fast as expected, and the epidemic situation is not as fast as expected.