Event description
The company disclosed its third quarterly report for 2022. In the first three quarters of 2022, the company realized operating income of 1.28 billion yuan, + 92.1% compared with the same period last year, and net profit of 190 million yuan, + 154.7% compared with the same period last year. Of these, 22Q3 realized operating income of 620 million yuan, year-on-year + 124.2%, month-on-month + 69.4%, and net profit of 110 million yuan, 192.6% and + 220.6%, respectively.
Event comment
The profit in a single quarter reached a new high, and the scale effect led to an increase in net interest rate. 22Q3 made a profit of 110 million yuan per quarter, a nearly two-fold increase over the same period last year, exceeding the combined profit of the first half of the year. The gross profit margin / net profit margin of 22Q3 is 31.7% / 17.2% respectively, which is-9.5pct / 4.3pct respectively compared with the same period last year. The scale effect shows that the total expense rate of the company during the period of the company is 9.7%/yoy-9.8pct, among which the financial / management expense rate is much lower than the same period last year, respectively-4.2pct/-3.4pct.
DWI technology extends to create the second growth curve of battery shell business. The main results are as follows: (1) the large cylindrical steel shell and the large cylindrical battery shell produced by DWI process greatly improve the material utilization rate and reach a better level in terms of efficiency, accuracy and consistency. According to the company's official account, the single-line production speed of 4680 large cylindrical steel shells is temporarily 200h / min, and the production capacity is still climbing. Earlier, BMW announced that it would be the first to use large cylindrical cells in "New Generation" models from 2025, and locked Ningde era, Yiwei Lithium Energy and Vision Power as battery suppliers. Large cylindrical battery is expected to gradually enter the stage of large-scale production because of its advantages in energy density, cost, safety and so on. (2) 34 series aluminum cylindrical shell, the two production lines in Hefei base are in the stage of mass production, which realizes the batch supply of head battery enterprises and has been installed and used in passenger cars.
(3) square shell, the company has acquired 55% of the shares in Changzhou and Sheng, and has initially completed the optimization of an experimental production line through technical transformation and production expansion, doubling the production efficiency from the original 20 / min. In addition, the company's fund-raising project "Changzhou Battery Shell production Project" raised an additional 200 million yuan to build two battery shell molding production lines.
Profit forecast, valuation analysis and investment advice: it is estimated that the company's net profit from 2022 to 2024 will be 2.2pm 3.5pm, an increase of 105.9%, 56.9% and 34.6%, respectively, compared with the same period last year. The corresponding EPS is 0.35, 0.55 and 0.75 yuan, respectively, and the corresponding closing price on October 27 is 22.79 yuan, and PE is 64.6, 41.1 and 30.6 times, respectively. Cover for the first time, giving a "Buy-A" investment rating.
Risk hint: downstream demand is lower than expected; fundraising project progress is not as expected.
