Core ideas:
The company disclosed its mid-year report of 2023, and its performance maintained the trend of year-on-year growth. 23H1 realized revenue of 398 million yuan, year-on-year + 44.87%, net profit of 139 million yuan, + 58.37%, and non-return net profit of 135 million yuan, + 59.29%. 23Q2 achieved a net profit of 37 million yuan, + 4.0% year-on-year and-63.3% month-on-month, while deducting non-return net profit of 36 million yuan, year-on-year + 3.64%, month-on-month ratio-64.1%. 23Q2 month-on-month decline is mainly due to a decline in overall orders in the first quarter, the industry has recovered significantly since June, and is expected to stabilize and pick up in the third quarter and the second half of the year.
The profit ability is stable, reducing the cost and increasing the efficiency is remarkable. 23H1 gross profit margin is 57.66%, year-on-year-6.73pct, net profit rate 35.37%, year-on-year + 3.67pct. 23Q2's gross margin is 49.58%, year-on-year-10.62pct, and net profit is 24.73%, year-on-year-0.57pct. 23Q2 company management expenses 15.23%, year-on-year-12.43pct; financial expenses 1.44%, year-on-year + 1.14pct; sales expenses 1.51%, year-on-year-0.02pct. The overall cost control is better.
Laminated battery continues to penetrate, cutting mold, coating business is expected to continue to expand. The permeability of laminated battery is expected to continue to increase in the future, and a number of major power battery manufacturers have begun to layout. The company has obvious advantages in cutting mould and coating business: (1) with its leading development ability and outstanding structure optimization design, the company has become the first batch of laminated cutting die manufacturers in China that have successfully developed, mass produced and been recognized by customers. (2) the company is actively expanding to the front section of lithium production equipment, and Zhifeng Technology has successfully developed a number of high-precision extrusion coating dies for lithium industry and OCR glass plates, which have been shipped in bulk.
Profit forecast and investment advice. The company's core products are expected to accelerate with the increase in the permeability of laminated batteries. It is estimated that the company's revenue from 2023 to 2025 will be 8.91,12.90 and 1.79 billion yuan respectively, and the return net profit will be 3.62,5.16 and 712 million yuan respectively. The company will be given 25 times PE in 2023, corresponding to a reasonable value of 38.39 yuan per share, maintaining a "buy" rating.
Risk hint. Sales of new energy vehicles and power batteries are lower than expected; lamination technology development and process penetration are lower than expected; battery capacity progress is not as expected; industry competition is intensified.