Event description
According to the company's semi-annual report for 2023, 2023H1 achieved an annual operating income of 398 million yuan, + 44.87% compared with the same period last year, and a net profit of 139 million yuan, + 58.37% over the same period last year. According to this calculation, 2023Q2 realized operating income of 154 million yuan, + 10.18% year-on-year, and net profit of 37 million yuan, + 4.01% compared with the same period last year.
Event comment
In the first half of the year, the performance increased and the net interest rate increased. The net profit of 23H1 was 139 million yuan, an increase of 58.37% over the same period last year, and its performance remained high. In terms of profitability, 23H1's gross profit margin was 57.66%, a year-on-year decline of 6.7pct, and a decline in gross profit margin due to customer price cuts; 23H1 net profit margin was 35.37%, an increase in 3.7pct compared with the same period last year. In 2023, the company will no longer provide cash incentives for excess performance, and management expenses have been greatly reduced, and the rate of 23H1 management expenses is only 8.7% (the rate of 22H1 management expenses is 16.8%). In addition, the rates of R & D expenses and sales expenses have been improved under the effect of scale.
Zhihong Precision supports the company's revenue and profit growth. According to the analysis of the main holding companies in the company's semi-annual report, Zhihong Precision 23H1 achieved an operating income of 375 million yuan and a net profit of 165 million yuan. It is estimated that the net interest rate of Zhihong Precision 23H1 is 44.0%, and its profitability is high. Zhihong Precision specializes in the field of lithium battery pole forming and has established a good and stable cooperative relationship with many leading or well-known enterprises in the downstream consumer battery, power battery, energy storage battery and other fields. With the rapid improvement of the business scale, the overall competitiveness continues to enhance, and the business develops steadily.
In the traditional main road passenger transport business sector, the company has subdivided and integrated the resources of passenger transport, high-speed rail, asset development and other business sectors, striving for cash flow to consolidate revenue channels, promoting bus reform, accelerating the recovery of accounts receivable, and continuously optimizing job allocations. spare no effort to reduce rigid costs and expenses, reduce costs and increase efficiency.
The cutting mold surpasses the industry growth, and the company's competition pattern is good. The permeability of lithium battery lamination process is gradually increased. The lithium electricity cutting die is the blade and its tool holder used to cut off the pole in the stacking machine or laminating all-in-one machine. it is the core component of the equipment and has the property of consumable materials, which continues to grow with the output of laminated batteries. The company has an excellent core team, leading technology, and experienced after-sales service team, high-speed response, making the company form a strong competitiveness, strong customer stickiness. At present, the company has a high share in the industry and has a good pattern.
The downstream space of the mold is broad, and it continues to expand new applications. Zhifeng Technology, a subsidiary of Zhihong Precision, has successfully developed a number of high-precision extrusion coating dies, which are superior to the same domestic products in technical index and quality, and have successfully served the lithium electricity industry and OCR glass plate coating. Among them, the slit extrusion die has achieved batch supply, the company is expected to continue to break through new customers. In addition, the company's new die production business has successfully provided customized services of imported brand dies for some lithium power enterprises, and die grinding business has successfully provided hundreds of die grinding services for lithium power enterprises. Mold industry downstream areas are broad, the company actively expand coating head, coating equipment and other new products, new business, is expected to contribute to important revenue and performance increment.
Maintain a "buy" rating. It is estimated that the company's 2023-25 net profit will be 4.0,5.9 and 800 million yuan respectively, corresponding to 17, 12 and 8 times PE respectively, and will continue to be given a "buy" rating.
Risk hint
1. Market competition risk of potential new entrants
2. Product upgrade and alternative risk of emerging technology route.