This is the first listed company in China devoted to the industrialization of hydrogen fuel cells. At present, the company's fuel cell business includes the design and development of membrane electrodes, stack modules and systems of hydrogen fuel cells.

In addition, the company's business also involves lithium batteries and energy storage. And in the overseas energy storage market, its shipments rank second in the country.

In the first quarter of 2022, the company's performance reached 479 million yuan. This not only increased by 15.10% year-on-year, but also hit a record high. The enterprise made a qualitative leap in this year.

At present, the company's stock has been adjusted since August, 2021. The stock price has been sharply withdrawn by 49% in 178 trading days, and the stock price has almost been cut off.

Main business and core competitiveness

In the company's financial report, the translator learned that the company's main business is the research, development, production and sales of lithium batteries, hydrogen fuel cells and lead batteries.

This enterprise's

Lead storage battery products

The proportion of income is 51.81%.

Recycled lead products

The proportion of income is 31.87%.

Lithium battery products

The income accounted for 16.32%.

In the field of lithium batteries, the company's subsidiary is building a recycling project for used lithium batteries, the first phase of which has a capacity of 25,000 tons.

With its competitiveness in this field, this enterprise not only became a supplier of Huawei's backup power supply, but also won the bid for the battery project of Alibaba data center, with a winning share of 80%.

Due to the outstanding performance of the company, in the first quarter of 2022, ICBC Securities Fund and Haitong Securities both increased their holdings of the company's shares, and also attracted China Bank and China Merchants Bank to invest in the securities coupon base.

After analyzing the basic information of the company, let's take a look at the changes in the company's net profit.

Net profit performance

The following contents and financial data are derived from the consolidated balance sheet on page 5 and the consolidated income statement on page 8 of the company's financial report for the first quarter of 2022, and there is no personal opinion.

In the first quarter of 2021, the net profit of this enterprise was only 29.738 million yuan. In the first quarter of 2022, the company's performance reached 479 million yuan, a substantial increase of 15.10%.

The company's net profit in the first quarter of 2022 ranked 13th among 167 listed companies in the A-share fuel cell sector. The ranking is very high, indicating its large scale.

After analyzing the scale of the enterprise, let's take a look at the company's cash flow in 2022.

The financial indicator of net cash flow is to record a company's cash receipts and payments, and it is also called the touchstone of net profit.

In the first quarter of 2022, the net profit of this enterprise was 479 million yuan. In the same period, the actual net cash earned by the company from operating activities was 180 million yuan, up 161% year-on-year.

The net cash flow increased significantly year-on-year, indicating that in the first quarter of 2022, the management of the company increased the collection of accounts receivable, so that the payment was returned to the company's account more quickly.

It can be seen that the current cash flow of the enterprise is very abundant, and the money in the account has also increased, which is very beneficial to its production and operation.

Finally, let's take a look at the profitability of the company and its position in the fuel cell sector.

To measure a company's ability to make money, we should use the index of return on net assets, which is the ratio of net profit to shareholders' equity.

In the first quarter of 2021, the company's return on equity was only 0.49%. This shows that if the management uses the shareholder's 100 yuan money, it can only earn a net profit of 0.49 yuan after three months of production and operation.

In the first quarter of 2022, the company's return on net assets increased to 9.18%, a substantial increase of 1773%.

The company's profitability in the first quarter of 2022 ranked third among 167 listed companies in the A-share fuel cell sector. The ranking is very high, indicating that the company's ability to make money is still very strong.

From the above analysis, we can draw three conclusions: First, the scale of this enterprise is very large. Second, the company's current cash flow is very abundant. Third, this enterprise has a strong ability to make money.

Reasons for performance growth

In the most important part of this article, let's analyze the reasons for the company's performance growth, which is also the most important part of this article.

By using DuPont theory, the translator found that in the first quarter of 2022, the company's net profit increased significantly, mainly due to the increase in the net profit rate of lithium battery products and the shortening of the sales payment time.

In the first quarter of 2021, the company sold lithium battery products in 100 yuan, and only earned a net profit of 0.54 yuan, with a net profit rate of 0.54%.

In the first quarter of 2022, the company also sold lithium battery products from 100 yuan, but it earned a net profit of 16.06 yuan, with a net profit rate of 16.06%, up by 28.74% year-on-year.

The company's net profit rate of sales in the first quarter of 2022 ranked 16th among 167 listed companies in the A-share fuel cell sector.

The time of sales return is the account period of selling lithium battery products, and it is also the time when the payment is returned to the company's account, which is expressed by average collection period.

In the first quarter of 2021, it will take 68 days for the company to receive the payment after selling the lithium battery products. Now it only takes 48 days, and the time for sales return is shortened by 29%.

The increase of the net profit rate of sales can increase the company's performance, while the shortening of the time of sales payment can improve the efficiency of capital use and enhance its profitability.

To sum up, in 2020, the company's performance in the first quarter of this year increased due to the improvement of the net profit rate of lithium battery products and the shortening of the sales payment time.

shortcomings

At the end of the article, let's take a look at the flaws and shortcomings of the company, so that everyone can fully understand the basic situation of the company.

By analyzing the main financial data translators, it is found that the current problem of this enterprise lies in the slowdown in the sales speed of lithium battery products.

The sales speed of lithium batteries should be measured by the company's inventory turnover days.

In the first quarter of 2021, it only took 103 days for the company to sell a batch of produced lithium batteries. Now it takes 111 days, and the sales speed has slowed down by 8%.

There are two reasons for the slowdown in product sales. One is that the market demand for the company's products has weakened, resulting in unsalable products. One is because the management has increased the inventory in order to expand production capacity.

We must be aware of these two possibilities and plan ahead.

If the fundamentals of listed companies are divided into five levels from high to low: A, B, C, D and E, the translator personally thinks that the company can maintain the C level.

And this enterprise is Nandu Power Supply Co., Ltd., stock code: 300068.

Please note: companies with good fundamentals may not necessarily see their stocks rise. But for those stocks that can continue to soar, the fundamentals of the company must be excellent.

However, this paper neither recommends Nandu Power Supply, nor does it say how good Nandu Power Supply Company is, but refines and translates its financial report.