\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 563 Xiamen Faratronic Co.Ltd(600563) )
The performance in 2022q1 was lower than expected and maintained the “buy” rating
In 2022q1, the company achieved a revenue of 840 million yuan, a year-on-year increase of 44.70%, and a net profit attributable to the parent company of 204 million yuan, a year-on-year increase of + 23.55%, deducting a non net profit of 193 million yuan, a year-on-year increase of + 22.34%. The performance was lower than expected. The gross profit margin in the first quarter was 37.8%, down 6.2 percentage points year-on-year in 202q1 and 3.6 percentage points month on month in the fourth quarter, mainly due to the rise of raw material costs and the adjustment of product structure. Based on the pressure of raw material cost, we lowered the previous profit forecast. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 1.020/14.84/21.17 billion (the previous value is RMB 1.131/15.26/2.141 billion), EPS will be RMB 4.53/6.60/9.41 (the previous value is RMB 5.03/6.78/9.51), and the current share price corresponding to PE will be 32.9/22.6/15.9 times. We believe that the new energy track has a long slope and thick snow, the company’s competitiveness is the world’s leading, and the rise of raw material costs is a short-term disturbance, maintaining the “buy” rating.
High income growth and brilliant performance
In 2022q1, the company achieved a revenue of 840 million yuan, a year-on-year increase of 44.70%, mainly due to the strong demand for downstream new energy vehicles and photovoltaic, and the steady growth of industrial control demand. According to the data of China Automobile Association for new energy vehicles, in 2022q1, the sales volume of passenger cars in China was 1.021 million, a year-on-year increase of + 138.5%, and the chain was affected by seasonality of – 11.9%; Photovoltaic, the newly installed capacity of photovoltaic in China in the first quarter was 13.21gw, a year-on-year increase of + 147.8%; Industrial control demand also maintained steady growth. The company’s production capacity grew rapidly, with fixed assets of 863 million yuan in the first quarter, an increase of 39.6% year-on-year in 2021q1 and 10.8% month on month in 2021q4. In 2022q1, the turnover rate of fixed assets remained at a high level of 97.4%.
The rise in raw material prices dragged down the gross profit margin
In 2022q1, the net profit attributable to the parent company was + 23.55% year-on-year, and the deduction of non net profit was + 22.34% year-on-year. The growth rate of both is lower than that of revenue, mainly because the gross profit margin is dragged down by the rise of raw material prices. The gross profit margin in 2022q1 was 37.8%, down 6.2pcts year-on-year and 3.6 percentage points month on month compared with 2021q4. In 2021, the company’s material power cost accounted for 64.5%, and the raw materials are mainly composed of base film, copper, zinc, tin, plastic shell, etc. Since 2021q4, the prices of base film and metal materials have further increased, putting pressure on the company’s gross profit margin in the first quarter. In addition, the change of product structure and the increase of the proportion of new energy vehicle revenue also partially reduced the gross profit margin.
Risk warning: chip shortage affects downstream terminal shipment; Risk of price rise of raw materials; The epidemic affects demand and supply chain risks.
