Science Technology

Exceed expectations! The energy storage business of superstar technology is exploding

Strong resilience in management. A few days ago, its third quarterly report also came out. I must praise it. Generally speaking, the earlier the financial report comes out, the better the performance is. It is true from the third quarterly report of superstar technology.
In the first three quarters of 2022, the company achieved a revenue of 9.835 billion yuan, a year-on-year increase of 28%, and a net profit attributable to the parent company of 1.263 billion yuan, a year-on-year increase of 10%; Non-net profit deducted was 1.234 billion yuan, up 24% year on year.
In the third quarter alone, the revenue reached 3.601 billion yuan, up 11.5% year on year; 7% month-on-month growth; The net profit attributable to the parent company was 622 million yuan, up 47% year-on-year and 35% month-on-month; The non-net profit deducted was 610 million yuan, up about 47% year-on-year and 41% month-on-month.
Looking at Q3, the revenue increased by 11.5% year on year, which seems not very high. But considering the current economic situation in Europe and the United States and the geopolitical turbulence, it is very good to achieve this level of growth. You should know that nearly 95% of the company’s revenue is from overseas, and nearly 90% of the revenue is from Europe and the United States. All kinds of turbulence in Europe and the United States will be deeply reflected in the company’s operation.
In this case, it can also achieve revenue growth, reflecting the lipstick effect of the company’s business as the economic downturn.
02 Lipstick effect of superstar technology
The lipstick effect means that when the economy is depressed, the sales of lipstick will rise sharply, because in the United States, lipstick is a relatively cheap consumer goods. In the economic downturn, people will still have a strong desire to consume and will turn to buy relatively cheap goods.
Why does superstar technology, as a hand tool manufacturer, also reflect the lipstick effect?
Human resources in Europe and America are relatively expensive. Many families repair their houses by themselves. Hand tools and electric tools are typical 2C products, which are sold in various supermarkets, totally different from those in China.
The more depressed the economy is, the more people tend to repair by themselves in order to save money, and the demand for hand tools will also increase. The economic downturn will not have a great impact on its performance.
On the contrary, when the economy is better, the performance is also beneficial. The fundamental driving force of the performance of the hand tool industry is the prosperity of the real estate market. The better the economy is, the more prosperous the real estate market is. The company’s main business is actually similar to the logic of consumer goods.
Compared with revenue, the growth level of net profit is more eye-catching. In addition to the efforts of the management team at the management level, the main reason is that two of the three mountains on the company have fallen.
When tracking superstar technology before, we said that the company has been suppressed by three mountains in the past two years: the pressure of rising prices of upstream raw materials, the soaring price of freight, and the appreciation of the RMB.
It was also based on the judgment of the weakening of the three mountains. From the perspective of the third quarter report, the previous prediction was gradually verified.
03 Three mountains disintegrate one by one
In terms of exchange rate, due to the strong expectation of interest rate increase of the Federal Reserve and some special domestic circumstances, the RMB has recently depreciated sharply, and the company has not made hedging exposure. Subsequently, with the expected strengthening of the Q4 interest rate increase in the US dollar, the company’s annual performance will continue to benefit from the appreciation of the US dollar.
In terms of freight, the pressure has also been greatly reduced. The current freight rate has dropped by more than 65% from the highest point in the first quarter, and by 35% from the same period last year. The freight pressure borne by the company has been significantly reduced. In the future, with the gradual clearance of the shipping orders and the continuous decline of the freight rate, the company’s gross profit margin is expected to further increase in the fourth quarter.
The cost of upstream raw materials is also declining. The company’s main raw material, rebar, entered the price reduction cycle, with a year-on-year decrease of about 30% at the end of September.
In addition, with the increasingly prominent scale effect of the company, the gross profit rate can also be gradually increased. The new energy storage business that the market is most concerned about has also made a certain breakthrough. The purchase order of 20 million US dollars for mobile energy storage and household backup products has been confirmed and taken effect. Although its energy storage business volume is still very small compared with the industry giants, the core of mobile energy storage business is manufacturing capacity, brand and channel, which the company has great advantages.
Subsequent household savings are expected to increase rapidly. In general, superstar technology is still small and beautiful, and the next step is to wait until it shows its own small and beautiful in the trend.