Event: the company announced on July 13 that it is expected to make a net profit of 48 million yuan to 62 million yuan in the first half of the year, an increase of 82.55% and 135.8% over the same period last year.
Comments: benefiting from the continuous improvement of the photovoltaic market, the pipe pile sales of photovoltaic projects increased significantly compared with the same period last year. During the reporting period, the company focused on the development of its main business and actively expanded the market through scale and brand effect, achieving an increase in production, sales and operating income over the same period last year, especially benefiting from the continuous improvement of the photovoltaic market, a significant year-on-year increase in pipe pile sales of photovoltaic projects; on the other hand, through continuous promotion of cost reduction and efficiency, continuous optimization of internal management, raising the level of comprehensive gross profit margin, thus effectively promoting the steady growth of the company's performance.
The company has a strong brand. The company is one of the few modern large-scale prestressed concrete pipe pile production and collectivized operation enterprises with R & D, production, sales and distribution services.
According to the data released by the China concrete and cement products Association since statistics, the company ranked second in the industry for nine consecutive years up to 2021. The company has always adhered to the development strategy of "developing its own brand", and its products have been widely recognized by the market.
The impact of the real estate industry on the company is gradually weakening. The impact of net profit due to the reversal of impairment in the first half of 2022 is expected to be about 13 million yuan, an increase of about 4.4 million yuan compared with the same period last year. According to the company's answer to investors' questions on Interactive E-Commerce, the management piles supplied to the real estate sector accounted for 20.35% of the operating income in the first quarter of 2023, and the accounts receivable in the corresponding real estate sector accounted for 20.57% of the total accounts receivable as of March 31, 2023, at a low level.
Dingzeng has been approved to increase the size of the Yangtze River Delta market. The company announced on May 16 that the CSRC agreed to the company's application for registration of issuing shares to specific targets. It was announced on the same day that no more than 151 million shares of the company will be issued to no more than 35 specific objects, and it is expected to raise no more than 1 billion yuan. The funds raised will be used for Zhejiang Huzhou's annual output of 6 million meters of PHC prestressed high strength concrete pipe pile intelligent production line construction project, Jiangsu Taixing PHC prestressed high strength concrete pipe pile production line construction project and supplementary liquidity. The completion of the new production line will help to expand the company's production scale, fill the market gap in the relevant areas of the Yangtze River Delta, improve the production efficiency and delivery capacity of the company's products, and better serve all kinds of national key projects in the Yangtze River Delta region through the coordination of production and market. give further play to economies of scale.
Coverage for the first time, giving the company an "overweight" rating. It is estimated that the company's net profit from 2023 to 2025 will reach 2.01,2.39 and 279 million yuan respectively, an increase of 29.4%, 18.8% and 16.5% over the same period last year, with a corresponding valuation of 34, 29 and 25 times.
Risk hint: the project production falls short of expectations, and the valuation and profit forecast fall short of expectations.