The company released its mid-2022 report. The H1 company realized revenue of 1.423 billion yuan, year-on-year + 44.2%, net profit of 63 million yuan, year-on-year-32.1%, and gross profit margin of 17.7%, year-on-year-8.2pct. Q2 single-quarter revenue of 874 million yuan, year-on-year + 32.2%, month-on-month + 59.2%; return to the mother net profit of 26 million yuan, year-on-year-53.8%, month-on-month-27.8%; single-quarter gross profit 16.3%, year-on-year-8.1pct, month-on-month-3.6pct.
Equipment orders continue to win, profit repair look at the second half of the year. H1 company equipment revenue 917 million yuan, year-on-year + 13.2%; new equipment orders 2.22 billion yuan, year-on-year + 66.7%, a total of 5.57 billion yuan on-hand orders, year-on-year + 68.9% meme Q2 in the epidemic impact of the order quarter still signed 760 million yuan. The increase in logistics and labor costs caused by the epidemic affected the acceptance progress of some projects, resulting in a slowdown in Q2 revenue growth and short-term pressure on gross profit margins caused by rising raw material prices. With the relaxation of the domestic epidemic situation and the resumption of logistics and transportation, the implementation and acceptance of the H2 project are expected to return to the normal pace, and profits are expected to be repaired.
The three-in-one products are advancing smoothly, and the electric drive business is turning from deficit to profit. H1 motor electronic control delivery of 73400 sets, year-on-year + 148%, including the joint venture company Road one power, a total of 100700 sets, year-on-year + 162%, the above risk statistics show that three-in-one shipments account for nearly 60%. The promotion of three-in-one new products has raised the value of bicycles to more than 6000 yuan, and H1 electric drive revenue of 506 million yuan, including Daoyi Power, totaling 649 million yuan, both + 186% compared with the same period last year, of which Giant Power and Road one Power made profits of 770 yuan and 3.23 million yuan respectively. With the expansion of production capacity and the mass production of new models, electric drive shipments will continue to increase in the second half of the year, and profits are expected to grow again.
The comprehensive capability of electric drive products and equipment will enhance the company's market position. 2022H1 domestic sales of new energy passenger vehicles are about 2.25 million, + 121% year-on-year. In the medium to long term, new energy vehicle companies are expected to open up more third-party supply to cope with the fast-growing capacity demand. The company is an enterprise with the ability of electric drive product research and development, production and equipment manufacturing, with obvious cost and technology synergy advantages, and is expected to continuously improve its market position and seize more market share in the competition.
Investment suggestion: we expect the company to achieve operating income of 3.49 billion yuan, 4.82 billion yuan and 6.19 billion yuan from 2022 to 2024, with a net profit of 210 million yuan, 340 million yuan and 510 million yuan, and a PE of 40, 25 and 17 times the previous share price, maintaining a "buy" rating.
Risk tips: terminal sales are not as expected, new orders are not as expected, and R & D progress is not as expected.