Event: the company's income in the first three quarters of 2022 was 554 million yuan, down 3.71%, and the net profit was 67 million yuan, 36.58%, 63 million yuan, 0.81%, 0.51%, 0.56 yuan, 0.56 yuan, 0.56 yuan, 0.81%, 0.51%, 0.56 yuan, 0.56 yuan, 0.81%, 0.81%, 0.56 yuan, 0.56 yuan, 0.56 yuan, 0.81%, 0.81%, 0.56 yuan, 0.56 yuan. 22Q3 achieved an income of 186 million yuan, a decrease of 4.34%, a net profit of 22 million yuan, a decrease of 63.43%, and a deduction of non-net profit of 22 million yuan, an increase of 9.50%. Due to the impact of the domestic epidemic and high inflation overseas, the company's income decreased compared with the same period last year, and 21Q3 received the relocation progress payment to confirm the asset disposal income, which increased the profit by about 40.5 million yuan, and the company's net profit decreased significantly compared with the same period last year.
Comments:
Epidemic-income fell year-on-year under the influence of high overseas inflation. In recent years, the proportion of the company's overseas income is nearly 20%. In the first three quarters of 22, under the background of domestic epidemic prevention and control and high overseas inflation, the company's revenue declined compared with the same period last year, among which the overseas demand of 22Q3 was under pressure and the overall domestic demand was weak.
Raw material prices rise-capacity utilization is low, short-term profitability is under pressure. In the first three quarters of 2022, due to rising crude oil prices and relatively low capacity utilization, the company's gross profit margin also fell by 1.45PCT to 24.87%. The rates of sales, management, R & D and financial expenses of 22Q3 Company are 2.91%, 4.18%, 7.26% and-3.05%, with the same increase of 0.28PCT, 0.29PCT, 0.97PCT and-3.41PCT. Among them, the company continues to increase investment in research and development of functional materials, leading to an increase in the rate of R & D expenses; the sharp decline in the rate of financial expenses is mainly due to the increase in deposit interest. The income from the disposal of 22Q3 assets also fell 99.99% to 5856.13 yuan. To sum up, 22Q3 achieved a net profit of 22 million yuan, a drop of 63.42%, with short-term income and profitability under pressure.
The main business and new energy business go hand in hand, and the reflective bibcock drives into the new track. 1) in terms of main business, the company adheres to the full-category strategy, has the advantages of advanced technology and large-scale production, and provides customers with small orders and fast counter-customized services. Strong fine management ability and high product quality help the company to further expand downstream customers and establish a stable cooperation system. In addition, the company continues to strengthen the production capacity of functional fabrics and the construction of R & D centers, expand consumer reflective products represented by fancy reflective fabrics and colorful reflective fabrics, and deepen cooperation with global head leisure sportswear brands. 2) in terms of new business, 22Q3 set up a holding subsidiary, laid out the new energy field, provided the distribution of electricity business, took the lead in cutting into the new energy industry from the user side, and is expected to continue to extend the industrial chain and create a new performance growth pole.
Profit Forecast and Investment advice: we maintain the company's EPS forecast of 0.87 EPS 1.29Unix 1.66 yuan from 2022 to 2024, and the current stock price corresponds to 15.51 times PE in 23 years. In the short term, as a leader in the reflective industry, the company is expected to further expand consumer reflective business and strengthen cooperation with head clothing brands; in the long run, the gradual landing of new energy business is expected to contribute to new performance increments and maintain "buy" ratings.
Risk factors: raw material price fluctuation risk, COVID-19 epidemic risk, exchange rate fluctuation risk, maturity reduction risk of restricted stock shareholders, etc.