In the first half of the year, the company achieved 258 million yuan in net profit and steadily increased its performance. Recently, the company reported that H1 realized 17.253 billion yuan in operating income, an increase of 83.66 percent over the same period last year, and 258 million yuan in net profit, an increase of 322.44 percent over the same period last year. Deducting non-return net profit was 174 million yuan, an increase of 457.90% over the same period last year. Q2 achieved revenue of 9.916 billion yuan in a single quarter, an increase of 80.52% over the same period last year, and a net profit of 138 million yuan, down 11.24% from the same period last year and an increase of 14.6% over the previous year. The company forecasts that the net profit of homing in the first three quarters is 3.58-408 million, an increase of 80.67 percent, 105.90 percent, and 9.4 percent, compared with the same period last year. Q3 achieved a net profit of 1-150 million in a single quarter, with an increase of-27.07 percent over the same period last year. The company's H1 comprehensive gross profit margin decreased 0.71pct by 6.27% compared with the whole of 2020, mainly due to 1) the revenue growth rate exceeded the gross profit growth rate due to the sharp rise in copper prices this year. 2) Transportation, packaging, installation and commissioning fees were reported according to the new accounting standards from sales expenses to main business costs. Overall, the company's first-half results were in line with expectations.
The continuous commissioning of production capacity will add new impetus to the company's performance growth: in 2021, H1 Company achieved copper-based material sales of 311300 tons, an increase of 31.29% over the same period last year, and achieved the 50% target of the annual business plan (613000 tons). In terms of projects: the first phase of the project with an annual output of 120000 tons of copper conductor materials will be put into production in June 2020, and the second phase is scheduled to be put into production in 2021; Skybird high new investment capacity is expected to be completed by the end of 2021 and basically reach production in 2022; construction of the first phase of 300000 tons of copper conductor materials has started, and other convertible bond projects are expected to start this year and be completed and put into production before 2023. With the release of production capacity of the company's new projects, the company's leading position in the copper processing industry will be further consolidated and add new impetus to the company's long-term growth.
Dingli Science and Technology was selected to specialize in the new "Little Giant" enterprises to be spun off and listed step by step: Dingli Science and Technology is the leader of domestic intelligent thermal equipment, and was selected into the third batch of specialized new "Little Giant" enterprises of the Ministry of Industry and Information Technology in 2021. The net profit in the first half of the year was 76.71 million yuan, which was significantly higher than that of 26.94 million yuan in 2020 (mainly affected by the epidemic and the relocation of factories). In 2020, the company officially launched the preparatory work for the split of top science and technology. At present, it has gradually implemented the reform of top science and technology shares in accordance with the overall plan, and completed the work of increasing capital and shares on July 30, 2021 (Chujiang Xincai currently holds 71.4285%). If Dingli Technology successfully completes the spin-off and listing, the company is expected to usher in a round of value revaluation.
Investment suggestion: we estimate that the EPS of the company in 2021-2023 is 0.49 yuan / 0.56 yuan / 0.67 yuan respectively, corresponding to PE is 24-21-17 times, maintain the "overweight" rating.
Risk tips: overseas epidemic situation worsened, copper processing fees declined, project progress fell short of expectations, and capacity digestion fell short of expectations.
