Hemei Co., Ltd. (688032)
Key investment points
Event: the company released the first quarterly report of 2022. In 2022q1, the company achieved a revenue of RMB 229 million, an increase of 95.53% and a decrease of 20.58%; The net profit attributable to the parent company was 87 million yuan, an increase of 175.23% and a ring increase of 8.87%. In 2022q1, the interest income was 24 million yuan, and the net profit after deduction was 63 million yuan, an increase of 103% at the same time. We expect the profit growth rate of micro reverse business to be higher than the overall growth rate, exceeding our expectations. The gross profit margin of 2022q1 was 48.20%, increased by 0.92pct at the same time and increased by 5.81pct in a ring. The RMB devalued significantly in April 2022. The company’s Micro reverse exports accounted for 94.5% in 2021. We expect the gross profit margin to continue to increase month on month.
Micro reverse shipments increased rapidly, and the U.S. market accelerated volume: we expect the company to ship 18 Shenzhen Zhongheng Huafa Co.Ltd(000020) 0000 micro reverse units in 2022q1, which has exceeded 170000 units in 2021h1. We expect the U.S. market to be in the period of accelerated volume. The company’s Shanghai Pudong Development Bank Co.Ltd(600000) new production capacity will be put into operation in August, with a total production capacity of 1 million units. The advantages of production scale will be improved. One drag six products will work towards industry and commerce. The rapid increase of European and American market share and the rise of European energy prices will promote the outbreak of European home storage market. We expect the company to continue to maintain rapid growth. We expect to ship more than 1 million units in 2022, an increase of 125% +.
Expand business layout and get involved in the BIPV field: on April 25, 2022, the company and Lets Holdings Group Co.Ltd(002398) signed a cooperation framework agreement to jointly set up a project company to layout the BIPV field. The two sides complement each other in the photovoltaic and construction fields, and will increase the application penetration of micro inversion in the distributed field and help the development of optoelectronic integrated buildings.
After the listing and fund-raising, the funds are sufficient to provide strong support for the follow-up development. After the listing and fund-raising, the company has sufficient funds. The monetary capital of the company reached 5.521 billion yuan by the end of 2022q1. The sufficient funds will effectively promote the subsequent development of the company and provide strong support for the subsequent expansion of production, R & D and brand channel construction.
In the future, energy storage will accelerate and become a new growth power of the company. The company will launch two port energy storage machines in 2022 and become the focus of the company’s sales in 2023. Energy storage will grow together with micro reverse. We expect energy storage to become a new growth power of the company.
Profit forecast and investment rating: Based on sufficient cash on the company’s account and shipments in European and American markets exceeding our expectations, we maintain the previous profit forecast. We expect the net profit attributable to the parent company to be RMB 484 / 936 / 1446 million from 2022 to 2024, with a year-on-year increase of + 140% / + 93% + 54%, maintaining the “buy” rating.
Risk tip: the policy is less than expected and the industry competition is more than expected.
