Revenue reached 700 million yuan in the first half of 2022, down 8% from the same period last year. The company achieved revenue of 742 million yuan in the first half of the year,-8% of the same period last year, and net profit of-21 million yuan,-127% of the same period last year. Q2 realized revenue of 335 million yuan, year-on-year-12%, month-on-month-18%; net profit-39 million yuan, year-on-year-224%, month-on-month-319%. It is mainly affected by the shortage of chips, the rising price of raw materials and the multi-point outbreak of COVID-19 epidemic in Jilin, Shanghai and other regions since mid-late March.
Rising prices of raw materials and natural gas put pressure on profitability. In the first half of 2022, the company's gross profit margin was 12.44%, down 5.27% from the same period last year; the net profit margin was-2.83%, down 1.18% from the same period last year. In 2022, the gross profit margin of Q2 company was 8.18%, down 16.16% from the same period last year and 7.75% from the previous year; the net profit margin was-11.54%, down 19.67% from the same period last year and 15.89% from the previous year.
The company's strategic layout of the "die-casting integration" technology field, large-scale die-casting equipment is gradually used for mass production. The company has formulated a research and development plan for large-scale die-casting technology, which will be mainly distributed in the fields of new energy "multi-in-one" aluminum alloy die castings, battery components and car body components. At present, the design and development of dies for 5000-8000T die-casting machine are under way. At the same time, the company has made some progress in the application of heat-free die-casting materials, and the related technology has been successfully applied in the production of integrated pallets. By the first half of 2022, a 4400T die casting machine has been put into use in Anhui Maanshan production base, and another 4000T and 4200T die casting machines are being debugged and installed. 6100T and 8000T die casting machines are expected to arrive at the factory by the end of this year.
Strategic layout die-casting integration, medium-and long-term development strategy is clear. The company's 5000T die-casting machines will be used for mass production in the second half of 2021. Seven large-scale die-casting machines will be added to the Maanshan base, and the Hungarian factory will also layout large-scale die-casting equipment. In the face of changes in the automotive industry, the company divides its business into withdrawal line, growth bottom line, growth line, explosive line and skyline, which is expected to achieve medium-and long-term great-leap-forward development.
Risk tips: gross margin decline risk, policy risk, raw material price rise risk, peer competition risk.
Downgrade earnings forecast and maintain buy rating. Taking into account the chip shortage, rising raw material prices and the impact of the epidemic on the automotive supply chain, we downgrade our profit forecast and estimate a net profit of RMB 106pm 253pm in 2022-2024 (compared with the previous profit forecast of RMB 2.52pm). As a high-quality aluminum die-casting enterprise, the company has high-quality new energy customers, early layout and full product expansion. The target valuation range for one year (2023) is 38-44 yuan (the previous valuation range is 18.8-22.5 yuan), maintaining the "buy" rating.