The application of membrane technology leads the military industry, and Q1 turns losses into profits in 2023. The company was founded in 2011, relying on many independent research and development of membrane separation application technology, to provide customers with customized membrane water treatment, waste resource utilization, material separation and extraction and other membrane separation technology application solutions. In 2022, the company realized operating income of 154 million yuan, a decrease of 32.40% over the same period last year; a net profit of 27 million yuan, a decrease of 43.05% over the same period last year; Q1 of 2023, and an increase of 44.00% over the same period last year; and a net profit of 2 million yuan, an increase of 301.46% over the same period last year.
Provide the overall solution of membrane separation technology, and actively expand the new scene of technology application. The company not only deeply understands the performance, specifications and application conditions of different types of membrane components in upstream membrane production enterprises, but also is familiar with the production process and characteristics of downstream industrial customers, and can provide industrial customers with an economical and efficient overall solution of membrane separation technology. At present, the downstream customers of the company are concentrated in industrial fluid separation, wastewater treatment, pulp, chemical fiber and other industries, among which, in the chemical fiber industry, the company can provide technical solutions for alkali recovery and recycling, which can recover about 400,000 tons of soda ash per year; in the textile printing and dyeing industry, the company can deeply treat wastewater, and the current reuse rate of reclaimed water is about 50%, 70% or nearly zero discharge according to production needs. In the field of biopharmaceutical, companies can treat raw water, reduce chemical consumption and production costs, and improve the conversion rate of raw materials.
We will improve the scientific and technological innovation system and increase investment in research and development. The company continues to strengthen the construction of R & D team, increase R & D investment, accumulate technology through internal R & D, and expand the application scene of membrane separation technology. At the same time, the company actively maintains close cooperation with scientific research institutes, and through R & D cooperation with Nanjing Forestry University, Shanghai Electric Power Institute and other institutions, the company has better enhanced the technological advanced nature of the company in the field of industrial separation. In 2022, the company invested 18.5651 million yuan in R & D, an increase of 9.97% over the same period last year, accounting for 12.05% of its operating income, an increase of 4.64pct over the same period last year.
Strengthen the management of accounts receivable and plan the cash flow steadily. In recent years, with the continuous growth of the company's business, the continuous increase in the number of customers and the change of customer structure, the company has strengthened the monitoring and collection management of accounts receivable. At the same time, the company deepens capital budget management and reasonably plans cash flow to provide guarantee for the company's sustainable development. In 2022, the net cash flow generated by the company's operating activities was 52.561 million yuan, an increase of 14.32% over the same period last year.
Profit forecast: we expect the company's operating income from 2023 to 2025 to be 2490.30 yuan / 433 million yuan respectively, and the net profit to return to the mother is 0.380.46 billion yuan respectively, corresponding to 48.82x/40.42x/33.95x, which is covered for the first time and given the rating of "overweight".
Risk hint: the order is not as expected, the project payback is not as expected, and the profit forecast and valuation model is not as expected.