\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 82 Longshine Technology Group Co.Ltd(300682) )
Main points:
Event overview
Longshine Technology Group Co.Ltd(300682) released the first quarterly report of 2022 on April 25. In 2022q1, 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%, and the net profit not attributable to the parent company was 47 million yuan, a year-on-year increase of 5.53%.
2022q1 performance exceeded expectations, and digital business maintained strong growth
On the revenue side, the company achieved an operating revenue of 840 million yuan in 2022q1, a year-on-year increase of 40%. Specifically, 1) the company’s energy digital business maintained a steady growth, and the number of newly signed orders and projects further increased; 2) Digital operation services continued to accelerate, among which the “xindiantu” aggregation charging platform far exceeded expectations, with a revenue of more than 60 million yuan; 3) Internet TV business users have increased steadily and revenue has continued to grow. On the profit side, in 2022q1, the company realized the deduction of non parent net profit of 51 million yuan, an increase of 5% at the same time; The comprehensive gross profit margin was 35%, down 8pct year on year. Mainly: 1) in order to further develop the company’s new energy Internet business market, the company continues to increase R & D investment and sales expenses; 2) The growth of intelligent terminal business with low gross profit margin of the company has reduced the overall gross profit margin of the company; 3) The company’s b-end energy digital business continues to invest, but the revenue is seasonal, so it may have an impact on the profit release in the first quarter.
The aggregation charging business has made great efforts, and the business data of “xindiantu” has performed brilliantly
2022q1 company continued to increase its investment in business expansion in the field of new electric transit. The “new electric transit” aggregate charging business of 2022q1 company achieved a revenue of more than 60 million, which is equivalent to the revenue of the whole year of last year. From the perspective of aggregate charging capacity, the number of charging piles in China in 2022q1 increased by about 43% year-on-year. The aggregate charging capacity of the company’s platform exceeded 330 million kwh, an increase of about 7 times over the same period of last year, significantly exceeding the growth of the industry. Among them, the Gmv of new platform pre purchased electricity in 2021 exceeded 100 million kwh; In terms of the number of platform users, there are nearly 3 million registered users in 2022q1, with a net increase of more than 700000 in a single quarter. The ultra-high growth rate of “xindiantu” business of 2022q1 company has once again verified our view that the C-end of the company has strong explosive power. We believe that, on the one hand, policies continue to encourage the development of new energy vehicles. According to the data of the Ministry of industry and information technology, the cumulative production and sales of new energy vehicles in 2022q1 are 1.29 million and 1.26 million respectively, with a market penetration rate of 19.3%, an increase of 5.9 PCT compared with the whole year of 2021. On the other hand, the company has vigorously invested in the development of “new power path”, strengthened platform construction and user service, and developed a new revenue model of pre purchase power. There is a certain amount of power purchase demand in the downstream of the company except for the two networks. Therefore, the company’s “xindiantu” business is expected to maintain explosive growth in recent years.
Digitalization creates high-quality development, and BC end dual wheel drive opens up a new growth space
The 14th five year plan for modern energy system proposes to speed up the digital and intelligent upgrading of the energy industry. In the 14th five year digital plan of China Southern Power Grid Corporation, China Southern Power Grid also stressed that digital technology will promote the digital transformation of power grid as the core productivity. Accelerating the digital transformation is not only an important strategy for the digital economy and the dual carbon goal, but also the basis for improving the quality and efficiency of the power system and meeting the new demand for electricity. As the leader of informatization in the field of electricity sales and consumption, on the one hand, the company deeply cultivates the energy industry, precipitates medium-sized capacity and platform products, and helps customers such as power grid and power generation group realize digital upgrading; On the other hand, build an energy Internet service platform, carry out demand side operation services, and provide a variety of energy services for end users. We believe that the company has profound accumulation and mature business model, so it has the ability to grasp the development opportunity of power informatization benefiting from double carbon and digital economy. The b-end maintains steady growth and the C-end continues to accelerate development.
Investment advice
Under the policy background of developing digital economy and achieving double carbon goals, the company, as the leader of informatization in the field of power sales and consumption in China, We always adhere to the BC side two wheel drive development strategy of “energy digitization + energy Internet” and are expected to rise in the east wind of power informatization. We expect the company to achieve revenue of 6 / 77 / 9.8 billion yuan from 2022 to 2024, with a year-on-year increase of 29% / 28% / 28%; the net profit attributable to the parent company is 1.1/14/1.9 billion yuan, with a year-on-year increase of 26% / 33% / 34%, maintaining the “buy” rating.
Risk tips
1) R & D breakthrough is less than expected; 2) Policy support is less than expected; 3) The project is not delivered as expected.
