Event: the company recently disclosed a half-year performance forecast for 2023, and the net profit attributable to shareholders of listed companies is expected to be 10.7311 million yuan to 20.8701 million yuan in 2023, a decrease of 90.6592 million yuan to 80.5202 million yuan compared with the same period last year, a decrease of 89.42% to 79.42% compared with the same period last year. The deduction of non-return net profit from-11.2394 million yuan to-1.4201 million yuan will be reduced by 109.4332 million yuan to 99.6139 million yuan compared with the same period last year, and 111.45% to 101.45% less than the same period last year.

Demand-side and cost-side pressure, dragging down 23 years of first-half results. Although demand improved in the first half of 23, it has not fully reversed, resulting in a significant decline in the company's sales compared with the same period last year, while the cost of raw materials has risen, resulting in a significant decline in the company's net profit.

Shipments increased significantly in the first half of 23 compared with the previous year, and silver-clad copper has been sold in bulk. The product shipments of 22Q3, 22Q4, 23Q1 and 23Q2 were 119.8, 104.5, 184.9 and 273.7 tons respectively. Driven by the recovery of the downstream consumer market, the company's 23H1 shipments increased significantly compared with the previous month. Silver-clad copper powder has been verified by downstream customers and formed a batch sale, the shipment of silver-clad copper powder exceeded 3 tons in the second quarter.

The fixed increase has been examined and approved, and the actual controller intends to subscribe in full. The company intends to raise no more than 550 million yuan to optimize the company's capital structure, and the real controller Wang Liping plans to subscribe in full, indicating the company's actual controller's support for the company's development strategy and confidence in the company's development prospects. at the same time, it is conducive to the implementation of the company's strategic decisions, enhance the company's ability of sustainable development, and promote the healthy and stable development of the company's business.

We predict that the company's earnings per share from 2023 to 2025 will be 0.59,0.91,1.34 yuan respectively. Valuation using DCF method to maintain the target price of 39.31 yuan, maintain the buy rating.

Risk hint

Macroeconomic growth slowed down, the company's nickel powder sales fell short of expectations, the company's new project capacity failed to digest as expected, the risk of exchange rate changes, the risk of high customer concentration, the risk of raw material price fluctuations.