This is the largest intelligent logistics equipment manufacturing enterprise in mainland China, the company's products involve artificial intelligence algorithms, and has independent intellectual property rights.
At present, the company's business not only involves new energy, semiconductors, electronic appliances, medical and pharmaceutical fields, but also its customers include BYD, CATL and Huawei.
Since 2020, the company's historical performance has achieved growth for three consecutive years, and in 2022, it reached a record high with a net profit of 133 million yuan, and the company made a qualitative leap in this year.
But in the first quarter of this year, the company's net profit after deducting non-recurring gains and losses was not very high, and the translator will explain these details at the end of this article.
At present, the company's stock has recently shown signs of a rise after a sharp retracement of 72%.
Hello everyone, I am the financial report translation officer, today I will investigate the A-share artificial intelligence concept sector, Yinfei Storage (stock code: 603066) listed company in the first quarter of 2023 financial report, let's enter today's topic.
Main business and core competitiveness
In the company's financial report, the translator learned that Soundfly Storage mainly provides customers with intelligent manufacturing, intelligent logistics planning and design and integrated systems.
The company's automation integration accounted for 74.15% of the revenue, and the revenue of shelf products accounted for 12.44%.
In the company's financial report, the translator found that at present, the company has seven major production bases, covering an area of about 700 acres, with an annual output of more than 200,000 tons of shelves, 5,000 shuttle + units, and a leading comprehensive production capacity in China.
In the shareholder information of this company, the translator also learned that although there are only 6 institutional investors among the top ten circulating shareholders of the company, the cumulative shareholding of the top ten circulating shareholders accounts for 61% of the outstanding shares, which shows that the company's chips are very concentrated.
After reading the basic information of this company above, let's analyze the net profit performance of the company.
Performance
The following and financial figures are derived from the company's first quarter 2023 report and do not contain any personal opinions.
In the first quarter of 2022, the company's net profit was 21.78 million yuan. By the first quarter of 2023, the company's net profit reached 47.54 million yuan, a significant increase of 118% year-on-year
The company's current net profit ranks 89th among the 394 listed companies in the A-share artificial intelligence concept sector. This ranking is not low, indicating that its scale is relatively large.
We must understand that comparing net profit can only analyze the size of a company, but cannot judge its ability to make money, because the net profit of enterprises of different sizes is not comparable.
Therefore, in order to analyze a company's earning power, it is necessary to use the indicator of return on equity, which is the ratio of net profit to shareholders' equity.
In the first quarter of 2023, the company's return on equity was 3.63%, an increase of 95% year-on-year. This shows that if the management uses 100 yuan of shareholders' money through the production and operation of intelligent logistics equipment, it can earn back a net profit of 3.63 yuan after three months.
And the company's current earning power, that is, return on net assets, ranks 19th among 394 listed companies in the A-share artificial intelligence concept sector.
We can find that in the first quarter of this year, the company's earning power ranked much higher than the net profit, which shows that among the A-share artificial intelligence concept sector and the company's size of the company, its ability to make money is the most outstanding.
At the end of this link, we will analyze the cash flow of the enterprise, the net cash flow generated by operating activities is a measure of a company's cash income and expenditure, also known as the touchstone of net profit.
In the first quarter of 2023, although the company's net profit was 47.54 million yuan, the company's actual net cash received due to operating activities in the same period was only 201,700 yuan, an increase of 101% year-on-year.
Because in the buyer's market, companies ship first and receive money later, which generates account period and accounts receivable, it is normal for net cash flow to be lower than net profit, because the difference between the two is that the payment has not yet been received.
In the first quarter of 2023, the company's net cash flow more than doubled year-on-year, which shows that compared with the same period last year, the company's cash flow has become very abundant, and its account has more money, which is very beneficial to the company's production and operation.
To sum up, in the first quarter of 2023, the company is large, the ability to make money is stronger, and its current cash flow is also very abundant.
Reasons for the increase in net profit
Let's analyze an important question, what caused the company's net profit to increase, I hope you can read carefully.
By using DuPont Theory Analysis, the translator found that in the first quarter of 2023, the company's net profit growth was mainly due to the improvement of net profit margin on sales.
In the first quarter of 2022, the company could only earn back a net profit of 10.73 yuan from the sale of 100 yuan of intelligent logistics equipment, and the net profit margin of sales was 10.73%.
In the first quarter of 2023, the company also sold 100 yuan of intelligent logistics equipment, but could earn back a net profit of 22.37 yuan, and the net profit margin of sales reached 22.37%, a significant increase of 108% year-on-year.
The company's current net sales margin ranks 24th among 394 listed companies in the A-share artificial intelligence concept sector. This ranking is very high, indicating that its net profit margin on sales is relatively high.
Through the above analysis, we understand that in 2023, due to the improvement of the company's net profit margin on sales, the company's net profit in the first quarter increased.
Deficiencies
Let's enter the last part of this article, in this link we come to find fault, analyze the current problems of this company, and the translator will give you a risk warning.
After analyzing the main financial data, the translator found that in the first quarter of 2023, the company's biggest problem was the reduction in non-net profit.
In the first quarter of 2023, although the company's net profit was 47.54 million yuan, the company's non-net profit was only 18.64 million yuan, a year-on-year increase of 2%.
The so-called deduction of non-net profit is the profit earned by deducting a company's non-operating activities, so only the deduction of non-net profit can fully interpret the operation of an enterprise.
After deducting non-net profit, there is about 30 million yuan, which shows that these funds are not obtained through operating income, but through disposal of assets, demolition or donations.
The reason why the deduction of non-net profit is a problem is because the profit earned by non-production operation is only available in the first quarter of this year, and will not appear in the future quarter, so this will affect the judgment of investors and is also a place that needs our attention.
If the fundamentals of a listed company are divided into five grades: A, B, C, D, and E from high to low, the translator personally believes that the company can maintain the level of C grade.
Please note: Stocks of companies with good fundamentals do not necessarily rise. But for stocks that can sustain a big rise, the company's fundamentals must be excellent.
This article does not recommend the stock of Inflect Storage, nor does it say how good the company is, but refines and translates the company's financial reports.