According to the company's three-quarter report, in the first three quarters of 2022, the company achieved revenue of 2.94 billion yuan / YoY+77.0%, return net profit of 280 million yuan / YoY+80.3%. 3Q22 achieved revenue of 1.19 billion yuan / YoY+95.2%, return net profit of 110 million yuan / YoY+96.9%, performance in line with expectations. The company is full of orders on hand, laying a solid foundation for the company's future performance growth. We maintain the company's annual return net profit forecast of 4.8 million yuan for 2022-23-24. Considering the industry development space, lithium electricity, photovoltaic core equipment comparable valuation level (2023 Wind unanimously expected PE: leading Intelligence 20X, Himalayan 19x, Maiwei 55x, Dier Laser 37X, Jiejia Weichuang 36X), we give the company 2023 homing net profit 30 times PE valuation, corresponding to the target price of 290yuan, to maintain the "buy" rating.
The company reported results in three quarters in line with expectations, and the delivery of orders continued to fulfill its performance last year. According to the company's three-quarter report, in the first three quarters of 2022, the company achieved revenue of 2.94 billion yuan / YoY+77.0%, return net profit of 280 million yuan / YoY+80.3%. The main reason for the high increase in 3Q22's revenue of 1.19 billion yuan / YoY+95.2%, return net profit of 110 million yuan / YoY+96.9%, is that the company began to deliver its performance one after another this year due to the high increase in orders last year. In the first three quarters of 2022, the company's gross profit margin was 36.0% soybean 1.4%. The decline in gross profit margin was mainly due to the company's low gross profit margin on newly signed orders. In the first three quarters of 2022, the net profit margin was 9.6%. The scale effect of revenue expansion drove the net profit margin to increase.
The company's four-fee rate for the first three quarters of 2022 is 26.9%/YoY-2.7pcts. In the first three quarters of 2022, the company has four fee rates 26.9%/YoY-2.7pcts, in which the rates of sales, management, R & D and financial expenses are 5.0%/-0.3pct, 11.1%/-2.2pcts, 10.8%/-0.9pct and 0.03%/-0.8pct respectively. The main reason for the decline in the rate of sales / management / R & D expenditure is the economies of scale brought about by the expansion of income, and the main reason for the decline in the rate of financial expenses is the increase in exchange rate gains caused by exchange rate fluctuations.
The company is full of orders on hand, increasing the business layout in the photovoltaic field. The company signed 7.4 billion yuan of new orders in the first three quarters of 2022, and the high increase in orders provides a strong guarantee for the company's future performance growth. At the same time, the company is expanding the layout of its photovoltaic business. According to the company's official account, on October 14, the company and VONARDENNE held a strategic cooperation signing ceremony at Liyuan Heng headquarters, and the two sides will deepen cooperation in photovoltaic (heterojunction, perovskite), energy storage and other fields. On October 28, the company official WeChat announced that Li Yuanheng (Germany) acquired Nowa Tepro to further strengthen the company's smart equipment business in Europe. Through the integration of Nowa Tepro, Li Yuanheng (Germany) will provide EU-made power battery modules, PACK assembly test lines and motor assembly lines for overseas customers and domestic battery companies to set up factories overseas, thus realizing the localization of EU core manufacturing equipment production.
Risk factors: 1. The company's power lithium power equipment capacity expansion is lower than expected; 2. The intensification of competition among lithium-ion equipment manufacturers led to a decline in gross profit margin; 3. The risk of slowing down the growth of the power lithium industry; 4. The risk of longer order delivery cycle due to local epidemic and other factors; 5. The management risk caused by the expansion of the company; 6. The risk of failure in the research and development of new technologies and new products.
Investment suggestion: the company is an excellent supplier of lithium power equipment, and full orders lay a solid foundation for the company's future performance growth. We maintain the company's annual return net profit forecast of 4.8 million yuan for 2022-23-24.
Considering the industry development space, lithium electricity, photovoltaic core equipment comparable valuation level (2023 Wind unanimously expected PE: leading Intelligence 20X, Himalayan 19x, Maiwei 55x, Dier Laser 37X, Jiejia Weichuang 36X), we give the company 2023 homing net profit 30 times PE valuation, corresponding to the target price of 290yuan, to maintain the "buy" rating.