The performance of 2022Q2 turned from loss to profit compared with the previous month, and the expense rate improved significantly during the period.

In the first half of 2022, the company achieved operating income of 558 million yuan, an increase of 59.09% over the same period last year. Due to factors such as the increase in the price of raw materials, delaying the pace of revenue recognition and paying equity incentive fees, the net loss during the reporting period was 7 million yuan, while the net profit of returning to the mother in the same period last year was 61 million yuan. Excluding the influence of equity incentive fees, the net profit of 2022H1 is about 1.51 million yuan. In a single quarter, Q2 achieved a record high of 434 million yuan in revenue, an increase of 89.26% over the same period last year, and its net profit was 25 million yuan, turning a loss into a profit compared with the previous quarter. The expense rate during 2022H1 was 28.01%, which decreased 4.56pct compared with the same period last year, in which the rates of sales, management, R & D and financial expenses were 8.59%, 4.76%, 13.57% and 1.1% respectively, which were + 0.74pct,-1.69pct,-3.87pct and + 0.27pct, respectively.

Chemical capacity equipment has been delivered one after another, and profitability is expected to improve in the second half of the year.

In the first half of 2022, the company's revenue from lithium power equipment reached 436 million yuan, an increase of 45.11% over the same period last year. Among them, chemical compartmentalization equipment has begun to be delivered in bulk, and it is expected to continue to contribute to the performance increment in the future. Due to the impact of quarterly raw material prices and misalignment of the procurement cycle, gross profit margin is under pressure and is expected to improve in the second half of the year as the cost pressure decreases. The revenue from 2022H1 testing services is 52 million yuan, an increase of 55.59% over the same period last year, and is expected to maintain a high growth rate with the growth of downstream customer R & D demand; gross profit margin 47.74%, an increase in 8.9pct over the same period last year. 2022H1's other main business income is 67 million yuan, an increase of 299.74% over the same period last year, and is expected to achieve rapid volume expansion with the high energy storage boom.

The new battery technology promotes the iterative upgrading of the charging network, and the optical storage, recharge and inspection create the second growth curve.

With the landing of new technologies such as Kirin battery 4C high-rate and fast charging, the technology and technology of related supporting facilities are accelerated, and the demand for high-power charging piles and energy storage is growing rapidly. Optical storage, charging and inspection intelligent overcharging station equipped with 1000V voltage platform can effectively cooperate with the promotion and application of 800V platform models, and at the same time effectively reduce the security risks to the power grid caused by high-rate fast charging. At present, the intelligent overcharging stations for optical storage, charging and inspection have been built in Fuzhou, Ningde, Longyan, Yibin and other areas. recently, the company has signed strategic cooperation agreements with Guangzhou Baiyun Public Capital, Guodian Xu Ji (Beijing) and beyond (Guangdong). Related projects are being accelerated throughout the country. The company can provide products and technologies such as energy storage converters, DC charging posts and nebula smart energy cloud platforms, which are expected to fully benefit from the increased demand for energy storage infrastructure in the future.

Investment suggestion

In 2022-24, the company is expected to achieve revenue of 1.401 billion yuan / 2.142 billion yuan / 3.11 billion yuan and net profit of 129 million yuan / 212 million yuan / 329 million yuan. The current stock price corresponds to a price-to-earnings ratio of 60X/36X/23X, maintaining a "buy" rating.

Risk hint

Raw material price fluctuation, technology update iteration is not as expected, the penetration rate of new energy vehicles is not as fast as expected, the popularization speed of energy storage is not as expected, and the competition in the industry is intensified.