Events:
The company reported that revenue in the first half of 2023 was 1.194 billion yuan, a decrease of 13.6 percent over the same period last year, and net profit was 132 million yuan, an increase of 28.68 percent over the same period last year.
Comments: 23Q2 realized revenue / return net profit of 663 yuan, with a year-on-year change of-6.88% and 28.52%. The gross profit margin / net profit margin in the second quarter was 25.71% and 11.66% respectively, an increase in 9.62pct/3.21pct and a month-on-month increase in 1.86pct/1.3pct over the same period last year, and profitability continued to improve. The sales / management / R & D / financial expenses in the second quarter were 4.09%, 2.73%, 4.33%, 0.16%, respectively, a year-on-year change in 1.83pct/0.81pct/1.73pct/-0.01pct.
Affected by the decline in the price of raw materials, the volume of the company's products increased and decreased. The sales weight of the company's construction rubber / industrial rubber increased by 19.37% and 33.87% respectively, and realized revenue of 774 million yuan / 293 million yuan respectively, a decrease of 9.51% and 3.81% compared with the same period last year. In terms of industrial adhesives, the business income of photovoltaic / electronic and electrical adhesives reached 112 million yuan / 125 million yuan respectively, down 3.11% and 0.24% compared with the same period last year. Photovoltaic glue companies and head enterprises in-depth cooperation, to enhance the market share in Longji, Jingao, Zhengtai and other enterprises. In the first half of the year, the interest rates of construction glue / industrial rubber were 25.08% and 27.6% respectively, an increase of 13.3PCT/3.46PCT over the same period last year, and the gross interest rate of construction rubber increased significantly.
The company's production capacity construction is smooth, and the cost advantage is prominent. The company raises investment project 100,000 tons / year high-end sealant intelligent manufacturing project is progressing smoothly, the first half of this year has increased 30,000 tons / year silicone sealant production capacity, forming 210,000 tons / year high-end silicone material production capacity. It is the largest production base of high-end silicone sealants in Asia. In addition, the company's wholly-owned subsidiary Anhui Sibao 8500 tons / year silane coupling agent technical transformation project is carried out as planned, and 6000 tons / year capacity construction has been completed in the first half of this year.
Actively layout silicon-based anode materials to create the second track. The project of 50,000 t / a silicon-carbon anode materials and special adhesives for lithium batteries is progressing smoothly. The construction of all the main projects has been completed in the first half of this year, and equipment installation is expected to begin in the fourth quarter. The new production line of 1000 tons / year silicon-carbon negative electrode for power battery was completed and put into production in April this year, laying the foundation for the testing and certification of silicon-carbon negative electrode materials and the smooth implementation of the project of 50,000 tons / year silicon-carbon negative electrode and adhesive for lithium battery.
It is proposed to issue a restricted stock incentive plan to demonstrate the company's confidence in development. The company intends to grant 6.96 million restricted shares to the company's directors, senior managers and core technical (business) backbone at a price of 8.26 yuan per share. The performance appraisal year is three fiscal years from 2023 to 2025, and the performance appraisal goal is to meet the corresponding indicators of operating income or net profit.
Maintain the company's "overweight" rating. It is estimated that the company's net profit from 2023 to 2025 will reach 3.15,3.92 and 487 million yuan respectively, an increase of 26%, 24% and 24% over the same period last year, with a corresponding valuation of 20, 16 and 13 times.
Risk hint: the project production falls short of expectations, and the valuation and profit forecast fall short of expectations.