On July 24, 2023, the company released its mid-year report of 2023. 23H1 achieved an annual operating income of 499 million yuan, an increase of 21.16% over the same period last year. Benefiting from the increase in sales of new energy equipment, it realized a net profit of 97 million yuan, up 13.18% over the same period last year. 23Q2 realized operating income of 265 million yuan, an increase of 21.99% over the same period last year, and realized deduction of non-return net profit of 49 million yuan, a year-on-year change of-1.12%. Short-term profits are under pressure. In terms of expense rate, the company's 23H1 sales expense rate, management expense rate, R & D expense rate and financial expense rate are 7.33%, 13.05%, 7.90%, 1.26%, respectively, and the year-on-year change + 0.27pcts/+1.06pcts/ + 0.59pcts/-1.25pcts means that the company has launched a number of R & D projects to speed up product development.

The traditional main business maintains a leading position in the industry. 1) PCB electroplating field: when the plate thickness is 36 μ m-100 μ m, the plating uniformity of the company's flexible plate-to-chip vertical continuous plating equipment can reach 10 μ m ±1 μ m, which exceeds the technical level of similar equipment in domestic and foreign markets. The company's horizontal plating equipment has completed the prototype shipment and launched product testing cooperation with downstream customers, and the performance of the equipment is comparable to that of imported similar equipment. The company's MSAP equipment has received new customer orders one after another, and has been in the stage of mass production. 2) General hardware field: orders for Longmen electroplating equipment continue to grow, constantly expanding market share. The hardware continuous plating equipment developed by the company based on traditional roll plating equipment is in a leading position in China, and its market share will reach 5-10% in the next 3-5 years.

Composite copper foil + photovoltaic copper plating, high growth period. 1) Composite copper foil field: according to GGII,2025, the domestic composite current collector market is expected to exceed 29 billion yuan, many manufacturers are competing for layout, corresponding to the high demand for equipment. As the only manufacturer that can achieve mass production of composite current collector equipment, the company's hydroelectroplating equipment can achieve a copper plating speed of 12-13m/min. The company's 12-target vacuum magnetron sputtering equipment has formed an order, and has achieved mass production, 24-target magnetron equipment has been in the debugging stage, reaching the industry-leading level. At the same time, the company brings the evaporation equipment of cathode materials into the integration strategy, and is committed to the development of composite copper foil contactless copper plating technology, which is currently in the scheme verification stage. 2) Photovoltaic copper plating field: with the increasing demand for cost reduction of photovoltaic cell modules and the trend of replacing silver with copper, the company continues to mass produce the second generation photovoltaic copper plating equipment, and the third generation photovoltaic copper plating equipment can achieve a production capacity of more than 8000 pieces / hour. at present, it has been basically completed and is being installed and debugged in the plant. With the acceleration of downstream composite copper foil and photovoltaic copper plating industrialization process, related equipment orders are expected to accelerate the landing.

[investment advice]

Considering that the downstream prosperity of the traditional main products is lower than expected and the industrialization of compound current collector is lower than expected, we lower our forecast for the company's revenue in 2023, 2024, and 2025 to 14.93, 24.64 and 3.123 billion yuan, with year-on-year growth rates of 47.62%, 64.97% and 26.74%, respectively, and the net profit of homing mother was 3.10,4.98 and 615 million yuan, up 45.25%, 60.85% and 23.43% respectively. The current price corresponds to 63,39,32 times of PE, maintaining a "buy" rating.

[risk Tip]

The progress of equipment research and development is not as expected.

The progress of industrialization of composite current collector is not as expected.

The prosperity of the PCB industry has declined.