Customers expand superimposed production capacity to release and boost performance level. According to the semi-annual report released by the company, H1 achieved an operating income of 1.055 billion yuan in 2022, an increase of 37.50% over the same period last year, mainly due to the increase in orders brought about by the expansion of new customers and the release of production capacity of the Jiujiang fundraising project. The company achieved a net profit of 91 million yuan, an increase of 122.85% over the same period last year. Through continuous cost control and efficient management, the company overcame the impact of adverse factors such as repeated epidemic situation and international tensions, and achieved a high increase against the trend.
The rate of expenses during the period of reduction of exchange earnings, and the investment in R & D continued to increase. In 2022, H1's gross profit margin was 23.04%, a year-on-year decline of 1.05pct. Under the unstable market situation in the first half of the year, the company's gross profit margin was relatively stable. From the point of view of the cost side, the expense rate of H1 company in 2022 was 12.14%, which was lower than that of the same period last year (6.99pct), of which the financial expenses was-3 million yuan, a decrease of 17 million yuan over the same period last year, and the proportion of the company's exports was more than 90%. Exchange rate fluctuations had a great impact on the expense rate. The R & D cost reached 44 million yuan, an increase of 32.73% over the same period last year. The company continues to increase its R & D investment in product areas such as high multi-layer PCB board, HDI board, rigid-flex plywood, flexible circuit board, metal substrate, thick copper plate, MiniLed PCB, semiconductor lead frame and carrier board.
The global layout strengthens the competitive advantage. The company has established production and manufacturing bases in Shenzhen, Jiujiang, Germany, Zhuhai and other places, and established sales platforms in the United States and Germany, covering many countries and regions in Europe, America and Southeast Asia. At present, the company has established good cooperative relations with Flextronics (Flextronics), Jabil (Jepp), ENICS (Anix), Plexus (Belesheng), ICAPE (Aijiapu), W ü rth (Woolt), Prodrive, Extron, Lam Research (Lam Research Corp), Arris, Agilent, Qualcomm Inc, Darktronics (Dako), BMK, JCI (Johnson controls) and other world-famous enterprises.
On the basis of the layout of the production base and sales platform, the company also optimizes its strategy in emerging areas through investment. In March 2022, the company jointly invested in SAX-Power GmbH, new energy and energy storage with Walden International and other European industrial investors. In June, the company, through its wholly-owned subsidiary Hong Kong Mingyang, invested in IcapeHolding, a well-known French PCB trader, which is currently listed on the Pan-European Stock Exchange. In the second half of 2022, the company will continue to pay attention to energy storage, semiconductors, new generation information technology, new materials, intelligent manufacturing and other emerging industries to strengthen industrial synergy.
The fund-raising project is progressing smoothly, bringing incremental space. The high-frequency high-speed printed circuit board project with an annual output of 360000 square meters in Mingyang, Jiujiang is expected to be available on June 20, 2023. The release of the production capacity of this project will optimize the company's high-end product structure and enhance the company's high-end market competitiveness. In August this year, the company decided to increase its capital by 120 million yuan to Mingyang, Zhuhai. This capital increase is also the layout of the company's business decision, which will enhance the company's business strength to a certain extent.
[investment advice]
Thanks to the increase in orders brought about by the expansion of the company's new customers and the release of the production capacity of the Jiujiang investment project, the company achieved a high performance in the first half of the year, with revenue up 37.50% and net profit 122.85% compared with the same period last year. The company pays attention to the global layout and the expansion of emerging fields, and jointly invests in SAX-Power GmbH, new energy and energy storage with Walden International and other European industrial investors. With regard to production expansion, the Jiujiang Mingyang high-frequency high-speed printed circuit board project with an annual output of 360000 square meters is expected to reach the scheduled state of use on June 20, 2023, which will inject long-term growth vitality into the development of the company. we estimate that the company's operating income in 2022, 2023, and 2024 will be 26.47, 37.40, 5245 million yuan, respectively, and the net return profit in 2024 is expected to be 2.193.25,428 million yuan, respectively. The EPS is 0.74 EPS 1.10 Compact 1.45 yuan, corresponding to PE is 21-14-11 times, given the "overweight" rating.
[risk Tip]
The recurrent impact of the epidemic
Downstream demand is lower than expected
Customer expansion falls short of expectations
The risk of rising prices of raw materials.