This report is read as follows:
The company has been ploughing white electric castings for many years, extending the process longitudinally in the field of white electricity, and horizontally expanding the two major fields of construction machinery and auto parts.
Main points of investment:
Considering that the company's previous acquisition of pig iron company has not been put into operation in 2023, the investment proposal has reduced the EPS of 23-24 years to 0.91 Universe 1.09 (- 0.19 Meltel 0.28) yuan, and the new 25-year EPS to 1.37 yuan. Reference industry gave the company 23 years of 16xPE, lowered the target price to 14.56 yuan (- 4.91) yuan, to maintain the "overweight" rating.
23Q2's performance is in line with expectations: the company's revenue in the first half of 2023 was 1.535 billion yuan,-12.08% compared with the same period last year; the net profit returned to the mother was 176 million yuan,-1.96% from the same period last year; and 155 million yuan was deducted from the non-return net profit, + 5.09% from the same period last year. 23Q2's single-quarter revenue was 774 million yuan,-10.08% compared with the same period last year, 100 million yuan in net profit, + 25.25% year-on-year, and 89 million yuan in non-return net profit, + 30.96% in the same period last year.
23Q2 profit growth is eye-catching, profitability has improved significantly. Since February 2023, the air conditioning production has continued to be high, which has led to the high growth of the company's high gross margin compressor casting business and double-digit growth in white power parts sales. In addition, affected by the fall in bulk prices, the price of the company's main raw materials has dropped significantly. 23Q2's gross profit margin is 25.05% (month-on-month + 3.39pct), net profit is 12.23% (month-on-month ratio + 2.96%), and profitability is significantly improved.
Vertical extension of white power process, horizontal power generation construction machinery and steam zero business. Baidian plate, the company successfully entered the washing machine supply chain, in addition, the second half of 23 years to enhance the delivery capacity of processed parts and assemblies, to achieve the extension of the processing process. In the construction machinery sector, the company is strengthening its market development efforts to achieve the goal of increasing production by the end of the year. Auto parts plate, the company has completed a number of lightweight material verification and delivery, the follow-up will continue to open up the market.
Risk tips: air-conditioning production scheduling and new areas of expansion are not as expected, macroeconomic recovery is not as expected, and so on.