\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 82 Longshine Technology Group Co.Ltd(300682) )
Event overview
On April 25, 2022, the company disclosed the first quarterly report of 2022. In the first quarter of 2022, the company realized an operating revenue of 840 million yuan, a year-on-year increase of 39.87%; The net profit attributable to the parent company was 51 million yuan, a year-on-year increase of 4.67%.
Analysis and judgment:
Revenue maintained high growth, and the market development of “xindiantu” platform accelerated
The company’s revenue in the first quarter maintained a high growth, with a year-on-year increase of about 40%, exceeding expectations. However, the company’s operating costs increased significantly by 59.77% year-on-year, and the sales expenses increased significantly by 69.99%, resulting in the decline of gross profit margin and net profit margin, and the net profit attributable to the parent company increased only by 4.67% year-on-year. According to the company’s announcement, the high sales expenses are mainly due to the investment in the market development of the energy Internet, namely “xindiantu” platform.
The “xindiantu” platform quickly explored the market, with a net increase of more than 700000 registered users in a single quarter, a ring increase of nearly 25% in the coverage of charging piles in a quarter, and a revenue of more than 60 million yuan. By the end of the first quarter of 2022, the charging pile coverage of “xindiantu” aggregation charging platform was nearly 400000, an increase of nearly 80000 (+ 25%) over the end of 2021; Nearly 3 million registered users, with a net increase of more than 700000 registered users in a single quarter; The aggregate charging capacity of the platform exceeded 330 million kwh, an increase of about 7 times over the same period of the previous year, and the pre purchased power Gmv of the platform exceeded 100 million kwh.
We increased investment in the “new power path” platform and maintained steady growth in energy digital business
The business investment of “xindiantu” has increased. In the first quarter, the company invested in extensive marketing and service subsidies for new energy owners. The operating loss of “xindiantu” platform business has an impact on the listed company of about 15 million yuan. If this loss is added back, the profit growth rate of the company is about 35%. We believe that it is necessary to invest in Internet related businesses in the early stage. Internet products usually have “network effect”. In the face of market development and market competition, the company may run horse and enclosure with subsidy strategy to form a certain brand reputation and user stickiness. Through further analysis of user big data, it will be more conducive to the company’s platform iteration and precision marketing.
In terms of energy digital business, the company still maintained steady growth under the epidemic. The company continued to develop in the core system of power service field, new digital infrastructure, energy service operation and other aspects, and the opportunities for new orders and projects further increased.
Investment advice
Longshine Technology Group Co.Ltd(300682) has benefited greatly from charging aggregation platform and power grid informatization. We maintain the profit forecast in the comments of the annual report, that is, the company is expected to achieve an operating revenue of 5.886/74.34/9.401 billion yuan in 22-24 years, EPS of 1.10/1.47/1.94 yuan in 22-24 years, corresponding to the closing price of 20.37 yuan / share on April 25, 2022, and PE of 18.65/13.94/10.54 times respectively, maintaining the “buy” rating of the company.
Risk tips
1) the risk that the revenue depends on the power industry; 2) The implementation of new energy policy subsidies is less than the expected risk; 3) New energy power generation technology reform process is less than expected risk; 4) Information construction is less than expected risk; 5) Macroeconomic downside risks.
