Huichuan Technology, the industrial automation leader known as “Xiaohua”, released a normal performance forecast on the evening of February 6.

Huichuan Technology is expected to achieve operating revenue of 21.532 billion yuan to 25.121 billion yuan in 2022, an increase of 20% to 40% over the same period of last year; Net profit attributable to shareholders of listed companies ranged from RMB3.931 billion to RMB4.645 billion, an increase of 10% to 30% over the same period last year.

This is the first 45UV5-1101 time that Huichuan Technology’s annual revenue exceeded 20 billion yuan, and both revenue and net profit hit a new high.

Multiple agencies believe the earnings forecast is in line with expectations. At the same time, it is difficult to hide the fact that the profit growth rate of Huichuan technology continues to slow down, and the gross profit margin has not stopped falling.

In an interview with Interface News, Huichuan Technology investment Department said that the slight decline in gross margin was mainly due to changes in product structure, and the growth rate of new energy vehicle business was faster than other businesses, which affected the comprehensive gross margin. The elevator business is also having an impact.

Under the record high performance, the stock price of Huichuan Technology did not have a special performance on February 6, and fell 0.70% with the market, closing at 71.31 yuan/share.

Gross margins have not stopped falling

Despite the record high operating income and net profit, on the high base, the 45UV5-1101 growth rate of Huichuan technology performance has slowed down, and the growth rate of the company’s performance in 2020 and 2021 is as high as 120.62% and 70.15%, respectively.

In terms of a single quarter, the profit range in the fourth quarter of last year was between 846 million yuan and 1.560 billion yuan, which was comparable to the average in the second and third quarters of last year, and was in line with market expectations.

Huichuan Technology 2022 performance forecast

At the same time, the growth rate of net profit of Huichuan technology is less than the growth rate of operating income, which is related to the decline in gross profit margin.

A decade ago, Huichuan’s gross profit margin on technology sales was above 50%; now it has fallen to around 35%. From the perspective of the three quarterly reports in 2022, its gross profit margin has stabilized and stopped falling, and the company’s gross profit margin on sales is 35.97%, which is slightly higher than 35.82% in 2021.

However, the performance forecast shows that the annual gross margin is still declining. Due to the changes in the revenue structure of the company’s products and the impact of the delivery of its subsidiary Shanghai Best Electric Co., LTD., the company’s comprehensive gross margin of products decreased slightly year-on-year.

In addition, Huichuan technology research and 45UV5-1101 development costs increased rapidly year-on-year, and financial costs increased significantly year-on-year. The Company’s non-recurring profit and loss increased year-on-year, and the company expects the impact of non-recurring profit and loss on the net profit attributable to shareholders of listed companies in 2022 to be about 865 million yuan, compared with 655 million yuan in the same period last year.

A number of institutions, including Citic Construction Investment and 45UV5-1101 Soochow Securities, believe that Huichuan Technology’s performance forecast is in line with expectations.

Soochow Securities believes that Huichuan technology performance is in line with expectations, and the leading turning point is imminent. At the same time, the target price of 95.40 yuan/share was given, and the closing price on February 6 was more than 30% from the target price.