Event
Xiongtao shares released the third quarter report of 2022, from January to September 2022, the company realized operating income of 2.876 billion yuan, an increase of 25.69% over the same period last year, and a net profit of 104 million yuan belonging to shareholders of listed companies, an increase of 1925.11% over the same period last year. The total assets of the company were 6.01 billion yuan, an increase of 4.93% over the end of the previous year, and the realized owner's equity belonging to the shareholders of the listed company was 2.597 billion yuan, an increase of 6.92% over the end of the previous year. In the third quarter of 2022, the operating income was 1.175 billion yuan, an increase of 40.61% over the same period last year; the net profit attributed to the parent company was 29 million yuan, an increase of 193.89% over the same period last year.
Comment
Operating income grows steadily and profits continue to improve.
Benefiting from the steady increase in battery shipments, the company maintained steady revenue growth in the first three quarters of 2022. With the continuous expansion of the scale, the level of the company's gross profit margin has been improved. In 2022, the Q1-Q3 gross profit margin was 13.45%, an increase of 1.86 pct over the same period last year; the net profit rate was 3.48%, from negative to positive. Under the background of the development concept of "new infrastructure" in China and the deepening promotion of hydrogen energy industry, it is optimistic that the company will benefit from the performance improvement brought about by the continuous enrichment of downstream application scenarios and the continuous expansion of scale.
Sign multiple orders to ensure performance growth
According to the company's three-quarter report, the company signed a total purchase contract of 85.565 million yuan for energy storage and power reserve with China Tower Corporation and Tower Energy, and signed a purchase order of 89.7946 million US dollars with overseas company RELIANCE JIO INFOCOMM LIMITED. According to the announcement issued on October 27, the company signed a "hydrogen fuel cell stack sales contract" with Shenzhen Shenke Pengwo Technology Co., Ltd., with a contract amount of 7.96 million yuan. The signing of multiple orders will deepen the cooperative relationship between the company and downstream customers and provide a strong guarantee for the growth of the company's future performance.
Profit forecast
We estimate that from 2022 to 2024, the company will achieve an operating income of 3.907 million yuan, with a net profit of 1.65 million yuan, and a net profit of 250 million yuan. The EPS of the company is 0.43, 0.65 and 0.87 respectively, and the current share price corresponds to 44.06, 29.00 and 21.73 of PE respectively. To sum up, we give "overweight" rating.
Risk hints: the risk of the new capacity being put into production is not as expected, the promotion of the hydrogen industry is not as good as expected, and the reduction of fuel cell costs is not as expected.
