Summary of events: on August 04, the company released its half-year performance KuaiBao in 2023, with operating income of 294 million yuan in the first half of 2023, an increase of 11.90% over the same period last year; net profit of 45 million yuan, an increase of 44.44%; and net profit of 40 million yuan, an increase of 54.32% over the same period last year. 2Q23, the company achieved operating income of 122 million yuan, down 21.34% from the same period last year; net profit from home was 14.6015 million yuan, up 8.90% from the same period last year; and net profit from non-return was 10.6635 million yuan, up 7.99% from the same period last year.

Consolidate the main industry and promote the diversification of equipment application scenarios: in the first half of 2023, the company has completed the old port temporary sludge treatment service project, completed a total sludge treatment of about 1.24 million tons, and realized the technical reserve of various kinds of special mud treatment. it has laid a solid foundation for expanding all kinds of sludge treatment projects facing the national market in the future. Phase IV of Zhuyuan sewage treatment Plant and other projects in hand are progressing smoothly. At the same time, the company promotes the application of solid-liquid separation in the industrial field. Since 2022, the demonstration project of dehydration and drying of ternary cathode materials in the field of "lithium electricity" has been successfully implemented, and a number of mass production project orders have been signed, bringing new growth points for the company's performance.

Business coupling, expand hydrogen storage and transportation, carbon assets business: on July 11, the company announced that Beijing Platinum Land plans to start a new hydrogen energy business with Shanghai as the core, and decided to set up the main body of hydrogen energy business in Shanghai. It is also proposed that "Beijing Platinum Land hydrogen energy related business and technology will be transferred to Shanghai Platinum Land". With the help of Beijing Platinum Land safe hydrogen storage technology, the company can improve the material and energy cycle level of the sewage treatment plant, and then promote the commercial application of hydrogen storage technology. On June 27, Jet carbon Technology signed a strategic cooperation agreement with Ordos Guorui carbon Asset Management Co., Ltd., and Zhongcai Tsuen Xing Industrial Investment Co., Ltd., which is the first forestry carbon sequestration project in Ordos. The project is fully responsible for the development and trading of technical support by the carbon technology team. The company actively explores new ideas for coordinated business development and extends the layout of energy-saving and low-carbon industrial chain.

Investment suggestion: the application prospect of the company's integrated dehydration and drying equipment is broad, and the application in the industrial field is worth looking forward to; the main body of hydrogen energy business is expected to land in Shanghai, and the hydrogen storage project will be accelerated; it is expected to take advantage of low-carbon "Dongfeng" to speed up the business layout of carbon assets. According to the operating situation of the company, the profit forecast of the company is adjusted. It is estimated that the annual EPS of 23-24-25 will be 1.08 yuan per share (the previous value is 1.31 yuan 1.65 yuan per share), and corresponding to the closing price of PE on August 4, 2023, it is 13.2 times higher than that of 21.4 shock. Considering the company to speed up the business layout of hydrogen storage and transportation and carbon assets, with enhanced cooperation and good performance growth, it will be given a target price of 25.92 yuan per share with a target price of 24.0 times PE in 2023, maintaining a "cautious recommendation" rating.

Risk hint: industry policy risk; raw material price fluctuation; industry competition intensifies.