22Q2's homing net profit is + 12.6% compared with the same period last year, maintaining "overweight"

The company released its 22-year mid-year report on August 24: 22H1 realized income / net profit from home / deducted non-return net profit from 24.5% Universe 0.28 million yuan, compared with the same period last year. + 4.8% Universe 21.4% Universe 2.6% bot 22Q2 income / net profit from return to mother / deduction of non-return net profit 12.3 Universe 0.04 million yuan, year-on-year + 1.1% Universe 12.6% Universe 47.4%. We maintain the forecast of the company's net profit of returning to the mother for 22-24 years as 0.61 million 0.77 million yuan. Comparable company 22-year Wind consensus expected average 2.2xPEG, 22-24 return net profit CAGR 16% (22-24 return net profit CAGR 27%), give the company 22-year 2.2xPEG, target price 15.69 yuan (previous value 11.41 yuan), maintain the "overweight" rating.

The income of all sectors of 22H1 maintained positive growth compared with the same period last year, and the gross profit margin was down from the same period last year. 22H1 glass kiln / cement kiln / steel refractories / wear-resistant and heat-resistant materials respectively achieved revenue of 2.4x5.9pm / 1.48pm, and + 9.5% + 9.5% + 7.1pc / 4.1px 2.5%. In the context of the overall downward demand in the steel, cement and glass industries downstream, the company's revenue still maintained positive growth. 22H1's gross profit margin is 16.6%, compared with 0.9pct / 22Q2 and 16.7% / year-on-year-0.6pct. Among them, the gross profit margin of cement kiln / steel refractory 22H1 is 25.7% 2.7/-0.4pct, which is 13.2% higher than that of the same period last year, and the energy cost of the downlink system increases compared with the same period last year, and the impact of the epidemic leads to an increase in transportation costs, which in turn drags down the gross profit margin.

The expense rate during the 22H1 period decreased compared with the same period last year, and the operating net cash flow reduced the 22H1 period expense rate by 12.7%, year-on-year-1.0pct, of which the sales / management / R & D / financial expense rate was 3.1%, 4.6%, 3.6%, 1.1%, and-0.5/-0.2/+0.4/-0.3pct. The decline in the rate of sales expenses is mainly due to the decrease of business hospitality expenses and travel expenses caused by the epidemic situation, and the increase in the rate of R & D expenses is due to the increase of material expenses. The 22H1 homing net interest rate is 1.1%, compared with the same period of last year + 0.1 PCT + 22Q2 is 0.8%, year-on-year + 0.1pct. The asset-liability ratio / interest-bearing debt ratio of 22H1 is 72.5% and 31.2%, year-on-year-0.1/-1.3pct. 22H1's operating net cash flow was 30 million yuan, year-on-year-30 million yuan, mainly due to the increase in accounts receivable and inventory year-on-year, resulting in a higher occupation of funds, of which 22Q2 is 50 million yuan, year-on-year-03 billion yuan / month-on-month 70 million yuan, month-on-month rise is a seasonal factor, the first quarter is the off-season.

The refractory industry may have entered the era of stock game, the background of central enterprises or helping companies grow steadily according to the statistics of the Refractory Industry Association, the national output of refractory products in the first half of 2022 was 11.3958 million tons, down 5.17% from the same period last year, and the industry output declined slightly, mainly due to the decline in downstream steel, cement and other production. As the downstream steel, cement, glass and other industries enter the era of reduction and replacement, we think that the competition among refractory enterprises may have changed from "incremental game" to "stock game". The company achieved positive revenue growth in the first half of the year, and under the background of the impact of the epidemic on production and sales, we expect to be related to the increase in the price of the company's products. The company is a refractory enterprise with the background of central enterprises, which is among the best in the industry, with a leading position in terms of technical level, innovation ability and brand influence, and is expected to maintain stable scale growth.

Risk hint: the prosperity of the steel / cement / glass industry is declining, and the cost is rising sharply.