Events:

According to the company's quarterly report for 2022, the company achieved operating income of 23.77 billion yuan in the first three quarters, an increase of 8.18 percent over the same period last year, and a net profit of 1.962 billion yuan, an increase of 24.4 percent over the same period last year. Among them, the operating income of the third quarter was 8.2 billion yuan, an increase of 19 percent over the same period last year, and the net profit of returning home was 497 million yuan, an increase of 32.6 percent over the same period last year. The net operating cash flow was 1.08 billion yuan, an increase of 38% over the same period last year.

Comments:

1. Coal machinery plate: in the first three quarters, the coal machinery plate achieved business income of 12.33 billion yuan, an increase of 29% over the same period last year, and a net profit of 1.87 billion yuan, an increase of 12% over the same period last year. The coal industry continues to maintain a good development situation, with a strong demand for efficient and intelligent equipment, and the company's coal machinery business orders continue to grow; at the same time, raw material prices have continued to decline since the second half of this year, and coal machine business costs have declined compared with the same period last year. Secondly, in order to meet the order growth, the company's coal machinery sector is also expanding production, and it is expected that the gross profit margin and output of the follow-up coal machinery business will increase in both directions.

two。 Auto parts plate: in the first three quarters, the business income of the auto parts plate was 11.46 billion yuan, down 8% from the same period last year, and the net profit was 96 million yuan. Of this total, SEG realized operating income of 8.76 billion yuan, down 4% from the same period last year, and Yaxinke achieved business income of 2.72 billion yuan, down 17% from the same period last year. Since the beginning of this year, the global automobile industry has been affected by the epidemic and rising energy prices, and global car sales have remained in the doldrums, but the company has scientifically controlled costs and improved overall operating conditions. At the same time, SEG is actively transforming to the motor of new energy vehicles, and has received orders from the leading new energy vehicle companies to ensure the sustained and stable development of the company. Secondly, Yaxinco is also actively expanding production and transforming to the direction of new energy. The proportion of new energy business continues to increase, and it is expected that Yaxinke's revenue will also maintain good growth.

Profit forecast: the company's 2022-2024 net profit is expected to be 2.52 billion, 3.09 billion and 3.53 billion, PE is 9 times, 8 times and 7 times, maintaining a "buy" rating.

Risk hint: coal machinery orders do not meet expectations; SEG performance does not meet expectations.