Events:
On August 17, the company released the "2023 semi-Annual report". During the 23H1 period, the company achieved operating income of 341 million yuan, + 49.28% year-on-year, 5.3322 million yuan of net profit,-92.48% of the same period last year, and 2.4482 million yuan of non-return net profit, + 272.03% of the same period last year.
Q2's revenue is growing rapidly, and the expense rate due to the scale of income is reduced.
The company Q2 realized revenue of 280 million yuan, which was + 64.09% compared with the same period last year. The company realized a net profit of 11.52 million yuan, which was-85.27% compared with the same period last year. This was mainly due to the increase in asset disposal income from land collection and storage in the same period last year, and the net profit was deducted from non-return net profit of 10.3835 million yuan, which was + 21.81% over the same period last year.
The sales rate / management rate / R & D rate of 23H1 is 6.25%, 7.85% and 5.75%, respectively, which is lower than the same period last year. The increase in revenue makes the rate significantly lower.
Order support performance, high growth in low nitrogen business and biomass business
23H1 added 83 new EPC orders, totaling 480 million yuan, and EP orders 21, totaling 43 million yuan.
As of China News, the company has 96 EPC orders, totaling 815 million yuan, 44 EP orders, totaling 157 million yuan, and 1 BOT (heating emergency power supply and peak shaving) order, totaling 180 million yuan.
The revenue of the energy-saving sector was 159.8 million yuan, + 4.02% compared with the same period last year, including 108 million yuan from plasma ignition business, + 40.38% from the same period last year, 46 million yuan from comprehensive energy-saving transformation business,-37.79% from the same period last year, and 61 million yuan from micro (less) oil ignition business, + 87.16% from the same period last year. The lack of investment in the transformation of the thermal power industry in the first half of this year slowed down the comprehensive transformation, and the speed of new units increased to boost the revenue of ignition business.
The revenue of the environmental protection sector was 69 million yuan, + 63.5% compared with the same period last year, including 64 million yuan from low nitrogen combustion, + 174.8% from the same period last year, and 5 million yuan from industrial tail gas control and power station software, achieving steady development.
The new energy sector achieved revenue of 112 million yuan, + 244.49% year-on-year, of which biomass business income was 111 million yuan, + 419.85% year-on-year, mainly contributed by projects such as Shouguang vegetable waste comprehensive utilization.
Energy new technology reserve promotes medium-and long-term performance growth
The company's in-depth product research and development, technology development, the company's coal-fired power plant ammonia combustion complete sets of technology and key equipment selected "the third batch of energy field of the first (set) major technical equipment", Hanchuan power plant transformation project to expand the application field of plasma ignition, expand the national production image fire detection technology import alternative technology.
Earnings forecast, valuation and rating
We estimate that the company's income in 2023-25 will be 2.333 billion yuan, the corresponding growth rate will be 86.35%, 70.88%, 19.79%, the net profit will be 1.45, 340, 409 million, 63.91%, 134.57, 20.21, respectively, and the EPS will be 0.28, 0.66 and 0.79 per share, respectively. The 3-year CAGR was 66.57%. We give the company 18 times PE for 24 years, maintain the target price of 12 yuan, and maintain the "buy" rating.
Risk hint: thermal power flexibility transformation is less than expected, market competition intensifies, and related party transactions risk.