011-13, Huaqin Technology won the title of "Little Giant" of the national specialized and specialized , and is one of the second batch of companies to win this title.
was established in 1992 and was successfully listed on Science and Technology Innovation Board in March 2022.
Company is mainly engaged in the research, development, production and sales of special functional materials, including stealth materials, camouflage materials and protective materials. The products are mainly used in my country's major national defense weapons and equipment such as aircraft, main battle tanks, ships , missiles , etc., camouflage of important ground military targets and surface protection of various equipment components. Customers cover major military groups and research institutes in the fields of aviation, aerospace, navigation, etc.
Company has formed a series of core technologies with independent intellectual property rights, breaking through the key technical bottlenecks of the research and development and industrialization of multiple special functional materials, making significant contributions to my country's national defense science and technology industry and advanced weapons and equipment construction, and is of strategic significance to maintaining national defense security. The company is currently one of the very few high-tech enterprises in China that can fully cover the design, research and development and production of stealth materials in room temperature, medium temperature and high temperature, and occupies a leading position in the field of military stealth materials in China.
By taking into account the third quarter report of Huaqin Technology in 2022, we can clearly see the characteristics of the financial texture of this "little giant":
1. The company's performance has grown rapidly, the "open source" performance growth quality is relatively high, the growth of operating activities and investment income is the main reasons for net profit growth, and the quality of net profit growth is relatively high.
2. Increased gross profit margin and the reduction of R&D expense ratio and management expense ratio drive the increase of core profit margins. The profitability of business activities is improved, the turnover rate of operating assets is stable, and the ROE of Huaqin Technology is stable. The double decline in
3, total asset return rate and equity multiplier dragged down Huaqin Technology's ROE.
4. However, the company's book profit has created a funding gap in order to bring real money inflows to the company.
5. Looking at the long-term cycle, business activities have certain hematopoietic capabilities and can provide certain financial support for investment activities, but they have not been fully covered and still need to rely on external funds to support development.
6. Your own hematopoietic ability cannot cover the rapid growth strategic investment. The company's financing means only equity flows in.
7. There has been a fund gap in business activities and investment activities. The company has expanded its equity and began to repay historical debts. Huaqin Technology's financial liability level has dropped to 0, and there is no debt repayment pressure.
8. The asset scale is basically stable, and the asset allocation does not focus on business. Investment assets for short-term profits are relatively high. The source of funds shows that the support for "blood transfusion" of shareholders' investment is increasing.
Below is an interpretation of the key features of Huaqin Technology's 2022 third quarter report.
The company's performance has grown rapidly. 2022 third quarter report Huaqin Technology's total operating revenue was 431 million yuan, a year-on-year growth rate of 39%, gross profit was 253 million yuan, a year-on-year growth rate of 41%, core profit was 174 million yuan, a year-on-year growth rate of 53%, and net profit was 200 million yuan, a year-on-year growth rate of 48%.
The growth of operating activities performance and investment income are the main reasons for the growth of net profit, and the quality of net profit growth is relatively high. Huaqin Technology's third-quarter report net profit of 2022 was 200 million yuan, and profit mainly comes from the core profits and investment returns generated by operating activities. The core profit generated by operating activities in the third quarter of 2022 increased by 60 million yuan compared with the same period last year, and the growth of net profit mainly comes from the growth of operating activities and investment income.
Business activities are of high quality of growth. Huaqin Technology's gross profit increased by 73 million yuan in the third quarter of 2022 compared with the same period in 2021, and expenses increased by 13 million yuan. While product profits grew, expense expenditure growth was controllable, and the "open source" performance growth quality was relatively high.
Looking at the long-term cycle, business activities have certain hematopoietic capabilities and can provide certain financial support for investment activities, but they have not been fully covered and still need to rely on external funds to support development.
From the perspective of the cash flow structure of Huaqin Technology's 2022 third quarter report, the cash at the beginning of the period was 127 million yuan, the net outflow of operating activities was 36 million yuan, the net outflow of investment activities was 2.208 billion yuan, the net inflow of financing activities was 2.872 billion yuan, the cumulative net inflow of 628 million yuan, and the end of the period was 756 million yuan. Business activities do not have the ability to make blood.
Judging from the cash flow structure of Huaqin Technology's 2020 report to this period, the cash flow was 26 million yuan at the beginning of the period, the net inflow of operating activities was 69 million yuan, the net outflow of investment activities was 2.277 billion yuan, the net inflow of financing activities was 2.938 billion yuan, and the net inflow of other cash flow was 0.00 yuan, the cumulative net inflow of 730 million yuan in three years, and the end of the period was 756 million yuan. Looking at the long-term cycle, business activities have certain hematopoietic capabilities and can provide certain financial support for investment activities, but they have not been fully covered. They still need to rely on external funds to support development and pay attention to the security of cash flow.
The company's book profit has created a funding gap in order to bring real money inflows to the company. Huaqin Technology's net cash outflow of operating activities in the third quarter report of 2022 was RMB 36 million, a decrease of 156 million yuan from the third quarter report of 2022. The cumulative net inflow of operating activities in this period in 2020 was RMB 69 million. Although Huaqin Technology's business activities are profitable on the books, they have created a cash gap.
Its own hematopoietic ability cannot cover the rapidly growing strategic investment. Huaqin Technology's 2022 third quarter report strategic investment outflow was 98 million yuan, an increase of 40 million yuan from the third quarter report of 2021, with a growth rate of 68.80%. The investment in strategic investment has grown rapidly. Huaqin Technology reported that this period of strategic investment outflow was 167 million yuan, and the net cash inflow generated by operating activities was 69 million yuan. The hematopoietic capacity of operating activities could not cover the outflow of strategic investment.
The company's financing methods only have equity inflows. Huaqin Technology's 2022 third quarter report fundraising activities cash inflows of 2.976 billion yuan, all from equity inflows. Compared with the third quarter report of 2021, an increase of 2.956 billion yuan, with a growth rate of 147.80, and cash inflows in financing activities increased rapidly. Huaqin Technology's net debt inflow in 2022's third quarter report was -69 million yuan, a decrease of 89 million yuan from the third quarter report of 2021, and the company began to repay its historical debts.
Asset scale is basically stable. On September 30, 2022, Huaqin Technology's total assets were 3.881 billion yuan. Compared with June 30, 2022, Huaqin Technology's assets increased by 53 million yuan, with basically stable asset scale and an asset growth rate of 1.39%.
Asset allocation does not focus on business, and investment assets for short-term profits are relatively high. Judging from the asset structure of the consolidated statement on September 30, 2022, the allocation of assets does not focus on operating activities, and the allocation of investment assets is relatively high. Its main components are investment assets with short-term profits. The strategic attributes are not strong. The company has a large number of asset allocations that are weakly related to strategic development.
assets are generally lighter. Judging from the operating asset structure as of June 30, 2022, commercial debt accounts for 67%, fixed assets account for 12%, and projects under construction account for 9%.
The double decline in total return on assets and equity multiplier dragged down Huaqin Technology's ROE.
022 third quarter report Huaqin Technology ROE 9.50%, a decrease of 26.93 percentage points from the third quarter report of 2021, and the shareholder return level decreased. The return on total assets was 8.59%, down 13.52 percentage points from the third quarter report of 2021, and the return on total assets was lower. The equity multiplier is 1.06 times, a decrease of 0.44 times compared with the third quarter report of 2021, and the ability of shareholders to leverage assets is reduced.
The funding source shows a trend of increasing support for shareholder investment "blood transfusion". Judging from the liabilities and owner equity structure of Huaqin Technology on September 30, 2022, the company's capital introduction strategy is shareholder-driven. Among them, shareholder investment is the main driving force for asset growth.Compared with September 30, 2021, the proportion of shareholders' capital investment has increased significantly, the proportion of operating liabilities has decreased significantly, and the proportion of retained capital has decreased significantly. The company shows a trend of increasing support for shareholders' capital investment in terms of fund sources.
Increased gross profit margin plus the reduction of R&D expense ratio and management expense ratio drives the increase in core profit margin. The profitability of business activities is improved, the turnover rate of operating assets is stable, and the ROE of Huaqin Technology is stable.
022 third quarter report Huaqin Technology's return on operating assets is 21.73%. Compared with the third quarter report of 2021, the return on operating assets is basically stable. Core profit margin is 40.41%. Compared with the third quarter report of 2021, the core profit margin rose by 3.71 percentage points, an increase of 10.11%, and the profitability of operating activities improved. The turnover rate of operating assets was 0.54 times, a decrease of 0.03 times from the third quarter report of 2021, a decrease of 6.02%. The turnover efficiency of operating assets was basically stable.
Huaqin Technology's gross profit margin in the third quarter of 2022 was 58.72%. Compared with the third quarter of 2021, the gross profit margin increased by 0.84 percentage points, and the gross profit margin was basically stable.
investment outflows have increased significantly, mainly to investments such as financial management. Huaqin Technology's investment activities outflow in the third quarter report of 2022, concentrated in investment management and other investments, accounting for 98.57%. Huaqin Technology reported that the investment activities outflows in this period in 2020 were concentrated in investment management and other investments, accounting for 97.17%.
Production capacity has expanded. 2022 third quarter report Huaqin Technology invested 98 million yuan in production capacity, disposal 0.00 yuan, depreciation and amortization loss 0.00 yuan, and new net investment 98 million yuan. Compared with the scale of operating assets at the beginning of the period, the expansionary capital expenditure ratio was 62.96%.
Business and investment activities have begun to have funding gaps. 2022 third quarter report Huaqin Technology's funding gap is 2.243 billion yuan, a funding gap begins to occur compared with the third quarter report of 2021. The cumulative fund gap for this period of operating and investment activities was 2.207 billion yuan in 2020.
Company expands its equity and begins repaying historical debts. 2022 third quarter report Huaqin Technology's cash inflow was 2.976 billion yuan, of which 2.976 billion yuan was inflowed in equity, 0.00 yuan in debt, and 0.69 million yuan in debt. The company expanded its equity and began to repay historical debts.
Huaqin Technology's financial debt level dropped to 0, and there is no debt repayment pressure. On September 30, 2022, Huaqin Technology's financial debt ratio was 0.00%, a decrease of 10.64 percentage points from September 30, 2021, and the level of financial debt decreased. AVIC Heavy Machinery financial debt ratio is 13.79%, and Huaqin Technology's financial debt level is lower than that of AVIC Heavy Machinery.
By viewing the market value compass App client, we tracked enterprise ranking changes, capital in and out and valuation status.
As of 2022Q3, Huaqin Technology's overall ranking in A shares rose to 1229th, and its ranking in the national defense and military industry dropped to 30th. As of January 1, 2022, there was no special signal for northbound funds. Judging from the evaluation indicators of price-to-earnings ratio in the past three years, the valuation curve of Huaqin Technology is in a relatively high range .
