Main points of investment

Basic event

The 2023H1 income is 960 million yuan (- 3.11% compared with the same period last year), the return net profit is 114 million yuan (+ 0.44% compared with the same period last year), and the non-return net profit is 113 million yuan (year-on-year + 1.43%). The single 23Q2 income is 502 million yuan (year-on-year + 0.39%), the return net profit is 68 million yuan (year-on-year + 9.70%), and the non-return net profit is 68 million yuan (year-on-year + 10.76%). Q2 performance recovered month-on-month.

Q2 chain ratio improvement, H2 growth is expected, accelerate the application of energy storage carbon materials sub-products, 23H1 wooden activated carbon / sodium silicate / silica gel respectively achieved revenue of 595.28 million yuan / 66.65 million yuan, year-on-year respectively-0.15% shock 3.89% Mai 37.78%, wooden activated carbon / sodium silicate / silica gel gross profit rate of 27.70% 9.32% 31.40% respectively Year-on-year respectively-1.65pctscop Q2 raw material costs drag down & terminal demand recovers weakly, prices of major products such as charcoal decline slightly, but stocks of enterprises downstream of Q2 terminal return to normal, sales increase compared with Q1, the company has a strong market advantage in the field of traditional powdered carbon, through large-scale production and integrated industrial chain to control costs, comprehensive product profitability remains stable. It is expected that Q3-Q4 downstream demand upward repair, performance is expected to continue to improve. In addition to the strong powdered activated carbon, the company has gradually expanded the market share of bamboo-based granular activated carbon, fruit shell activated carbon, honeycomb activated carbon, super capacitive carbon, hard carbon, silicon carbon and other new products, and made use of its long-term advantage in carbon materials. accelerate the application of energy storage carbon materials in the field of new energy, traditional business steady growth & energy storage carbon materials accelerate, optimistic about the steady growth of the company for 23 years.

Profit margin improved month-on-month, good fee control ability, healthy cash flow (1) profit margin: 23Q2 achieved a gross profit margin of 23.00% (year-on-year-1.23pct, month-on-month + 1.36pct), achieved a net return rate of 13.63% (year-on-year + 1.16pct, month-on-month + 3.72pct), profit margin improved.

(2) period expense rate: the expense rate during the 23Q2 period is 9.33% (year-on-year-0.15pct, month-to-2.25pct), and the comprehensive cost is well controlled. The 23Q2 sales expense rate is 2.07% (year-on-year + 0.39pct, month-on-0.12pct), the management + R & D expense rate is 9.58% (year-on-year + 0.53pct, month-on-1.90pct), and the financial expense rate is-2.32% (year-on-year-1.08pct, month-on-0.23pct), mainly due to the conversion of convertible bonds into equity, and the interest income of the raised funds is included in the financial expenses.

(3) operating efficiency and cash flow: 23Q2's capital expenditure was 106 million yuan (an increase of 64 million yuan over the same period last year), accounts receivable was 203 million yuan (an increase of 25 million yuan over the same period last year), the turnover days of accounts receivable increased by 0.19 days to 32.44 days, and notes and accounts payable totaled 99 million yuan (19 million yuan less than the same period last year) The inventory was 306 million yuan (an increase of 58 million yuan over the same period last year), and the inventory turnover days increased by 17.82 days to 74.55 days over the same period last year. In terms of cash flow, the net operating cash flow of 23Q2 was 107 million yuan, an increase of 24 million yuan over the same period last year.

Wood activated carbon faucet, carbon, silicon business two-wheel drive, energy storage materials for the company for wooden activated carbon bibcock, carbon, silicon business to maintain sound, new energy storage materials can be expected in the future. In 2022, the company has a production capacity of more than 120000 tons of wooden activated carbon (with a market share of 30% +), consolidating its market position in the field of traditional powdered carbon applications such as food and beverages, and steadily expanding new products such as bamboo-based granular carbon, biomass hard carbon and super capacitive carbon for environmental protection. The second growth curve of energy storage is promising.

Investment suggestion

It is estimated that in 23-25, the company will achieve revenue of 22.69 billion yuan, 14.59%, 20.54%, and net profit of 2.60, 312, 323 million, 35.51%, respectively, corresponding to 0.710.86 / 1.16 yuan of EPS and PE26/21/16X, maintaining the "Buy" rating.

Risk hint

Downstream boom fluctuations, raw material prices fluctuations, capacity expansion is not as fast as expected.