\u3000\u3 Bohai Water Industry Co.Ltd(000605) 117 Ningbo Deye Technology Co.Ltd(605117) )
The company announced the results of the first quarter of 2022
In 2022q1, the revenue reached 841 million yuan, a year-on-year decrease of 2.7% and a month on month decrease of 26.2%; The net profit attributable to the parent company was 132 million yuan, with a year-on-year increase of 31.8% and a month on month decrease of 25.7%. The performance is located in the forecast center.
The business of heat exchanger declined sharply, and environmental appliances maintained steady growth
Affected by the prosperity of downstream air conditioning, the revenue and profit of heat exchanger decreased significantly year-on-year, and the proportion of revenue decreased by 27.4pct; The income of environmental electrical appliances was 118 million (+ 38.0%), growing steadily, and the proportion of income increased by 4.3pct. The company is gradually transforming from traditional household appliance manufacturing industry to inverter industry.
Multi market efforts have helped the inverter business increase in volume, and the growth rate of micro reverse and energy storage is higher
In 2022q1, the inverter business revenue was 330 million, of which the energy storage revenue accounted for 51.5%, and the energy storage / micro reverse / String revenue was 193.9% / 123% / 33.71% respectively year-on-year. The inverter business is driven by many markets, and Q1 in the US market has not started due to the climate and the change of new products; Spain and the Czech Republic achieved market breakthroughs, contributing incremental growth in the first quarter, and the proportion of European market revenue in 22 years is expected to increase to 15%; The stock of 21q4 in the Brazilian market has been fully digested, the subsequent orders are expected to be reflected in Q2, and the Q2 inverter is expected to accelerate the volume. The company actively improved the product matrix, developed industrial and commercial string and energy storage products, reactive power compensation micro inverse and one driven eight micro inverse and other new products, and accelerated market expansion. Inverter shipments are expected to more than double in 22 years, of which micro reverse shipments are expected to triple.
The profitability of inverter is stable, and the improvement of income and proportion drives the enhancement of the profitability of the company
The company's inverter single watt price remains stable, and the localization rate of IGBT is expected to reach 50% in 22 years. The shortage of IGBT has a limited impact on the company's cost and production capacity. The gross profit margin of Q1 micro reverse / string / energy storage is 31% / 36% / 39% respectively, which remains stable compared with the level of last year. The slight fluctuation is mainly due to the impact of exchange rate. The company's comprehensive net profit margin was 15.71%, with a slight increase of 0.09pct month on month, 1.83pct higher than the annual net profit margin of 21 years. It is considered that it benefited from the rapid increase of inverter business income and proportion with strong profitability.
Investment advice
We estimate that the company's net profit attributable to the parent company in 22-24 years is RMB 887 / 1233 / 1706 million, corresponding to pe43x / 31x / 22x. Maintain the "buy" rating.
Risk tips
The PV demand is lower than expected, the gross profit margin is lower than expected, the risk of key customers, the risk of aggravating the epidemic, etc.
