Ruina Intelligence released a report for the third quarter of 2022 that the company achieved operating income of 173 million yuan in the first three quarters of 22, + 37.34% year-on-year, and net profit of 35.1572 million yuan, + 190.23% compared with the same period last year. At present, the newly signed orders are progressing smoothly, and the year-on-year growth rate of newly signed orders for the whole year is expected to exceed 80%. Intelligent heating can achieve win-win results for the government, thermal companies and residents. With the support of the government special debt, various localities have increased the transformation of the heating network, the company's Shandong customer orders have doubled, and Beijing is promoting a pilot project with great flexibility in its performance next year. The company's performance is clear, the valuation has a margin of safety, and it is given a "highly recommended" rating!
In the first three quarters of the company, the operating income was 173 million yuan, + 37.34% compared with the same period last year, and the net profit was 35.1572 million yuan, + 190.23% compared with the same period last year. Q3 single-quarter main income 77.2664 million yuan, year-on-year + 39.10%, month-on-month + 19.62%; single-quarter return net profit 15.9554 million yuan, year-on-year + 333.35%, month-on-quarter + 87.33%; single-quarter net profit deducted 5.8564 million yuan, + 162.21% year-on-year. The heating equipment industry has obvious seasonality. 80% of the revenue of previous years was recognized in the fourth quarter, so we should pay more attention to the annual performance. Revenue and profits in the first three quarters are closely related to specific projects in the current quarter.
The company's gross profit margin for the first three quarters of 2022 was 55.32%, year-on-year-0.27pct, and net profit was 20.09%, year-on-year + 10.49pct. Q3 single-quarter gross profit margin is 62.13%, year-on-year + 7.88pct, month-on-month + 15.39pctten Q3 net profit 20.65%, year-on-year + 14.02pct, month-on-month + 7.46pct.
There has been a substantial increase in newly signed orders, with Shandong Province making the greatest contribution, and Shandong Province has expanded smoothly outside Shandong Province. This year is the first year of the outbreak of intelligent heating, special bonds were issued in the first half of the year, and there are many large-scale bidding projects. Customers in Shandong have contributed a large number of 100 million yuan level orders. in addition, the three eastern provinces and Inner Mongolia have made certain achievements in business development this year. The company is actively exploring the Beijing market and has now entered the pilot project. Xinjiang, as a traditional advantage area of the company, due to the impact of the epidemic this year, the progress of heating transformation has been delayed, the contribution of orders is relatively weak, and more orders are expected to be contributed when the epidemic improves.
The construction of the new plant is smooth and the production capacity is worry-free. It is expected that the new plant and equipment of the company will be installed in May 23, and trial production will begin in June, which can meet the production demand in the peak season. At present, the epidemic situation across the country is still taking place, delaying the final construction process, but full orders and abundant production capacity will eventually be translated into performance.
"carbon neutralization" is related to every industry, and the energy sector needs to "increase revenue and reduce expenditure". There are still multi-link heat losses in winter heating in northern China. Renner's plan can save energy by 1030%, increase the profitability of thermal companies, and then reduce government subsidies for losses of thermal companies, which is also in line with the current "double carbon" emission reduction target. We estimate that the company's net profit in 22-23-24 will be RMB 2.38, 312, 405 million yuan, compared with the same period last year, + 39%, 31%, 30%, corresponding to 11.7 times of PE 20.0, 15.2, and continue to be highly recommended.
Risk tips: the risk of a sharp rise in raw material prices, the risk of repeated domestic epidemics, and the risk of brain drain.