\u3000\u3 Bohai Water Industry Co.Ltd(000605) 111 Wuxi Nce Power Co.Ltd(605111) )
Event:
The company released the financial report of Q1 in 2022, and achieved an operating revenue of 421 million yuan in Q1 in 2022, with a year-on-year increase of 30.79%; The net profit attributable to the parent company was 112 million yuan, a year-on-year increase of 50.11%; The net profit attributable to the parent company after deduction was 110 million yuan, a year-on-year increase of 48.29%.
Comments:
The profitability has increased steadily, and actively explore emerging markets and key customers
The company’s Q1 gross profit margin in 2022 was 39.72%, with a year-on-year increase of 6.23 percentage points and a month on month decrease of 0.02 percentage points; The net interest rate was 26.72%, with a year-on-year increase of 2.98 percentage points and a month on month increase of 1.72 percentage points. The overall profitability increased steadily. Considering the deduction of 190797 million yuan of equity incentive sharing expenses, the steady-state profitability is actually at a higher level. The reason for the performance growth lies in the vigorous development of emerging markets and key customers, and the rapid expansion of sales scale in the fields of automotive electronics / photovoltaic inverter and photovoltaic energy storage / plant protection UAV / high-end electric tools.
IGBT mass production progress is fast, and the research and development of SiC / GaN power devices is progressing smoothly
In 2021, the revenue of IGBT products exceeded 80 million. 12 inch 1200V high-frequency low saturation voltage drop IGBT products have been stably mass produced. The preliminary development of 650V high-density grooved gate IGBT has been completed, and a variety of IGBT module products have entered small batch production; The development of SiC MOSFET platform for 1200V new energy vehicles was successful, and the first streaming verification of the product was completed. The mass production and continuous R & D capability of cutting-edge products ensure that the company can enjoy the development dividends of automotive electronics / new energy power generation and other industries. In 2021, the company introduced customers of Byd Company Limited(002594) , Weilai, JAC and other automobile brands, and achieved mass sales in many head photovoltaic inverter / photovoltaic energy storage customers.
Profit forecast and investment suggestions
We expect that the company’s revenue in 202224 will be RMB 2.091/28.15/3.673 billion respectively, the net profit attributable to the parent company will be RMB 528/6.69/822 million respectively, the EPS will be RMB 3.69/4.68/5.75 respectively, and the corresponding PE will be 35 / 28 / 23 times. We adopted the PE valuation method. In view of the rapid volume of the company’s photovoltaic IGBT and other products, we gave the company 50 times PE in 2022, obtained the target price of 184.73 yuan, and maintained the “buy” rating.
Risk tips
Macroeconomic fluctuation risk, supplier dependence risk, new product R & D progress less than expected and other risks.
