The company's 2023H1 realized income of 1.784 billion yuan, year-on-year + 64.16%, net profit of 258 million yuan, year-on-year + 129.03%, deduction of non-return net profit of 230 million yuan, + 131.20%. Benefiting from the substantial improvement in all domestic business lines compared with the same period last year, superimposed and continued efforts in overseas business, we are optimistic about the company's development trend throughout the year and maintain its "buy" rating.
Benefiting from the recovery in domestic demand, 2023H1's revenue / return net profit was respectively + 64% and 129% compared with the same period last year.
The company's 2023H1 realized income of 1.784 billion yuan, year-on-year + 64.16%, net profit of 258 million yuan, year-on-year + 129.03%, deduction of non-return net profit of 230 million yuan, + 131.20%. On the cost side, the company's 2023H1 gross profit margin is 49.79%, year-on-year + 2.60pcts. On the expense side, the sales / management / R & D / financial expense rates of 2023H1 are 5.10%, 9.59%, 17.05%, 0.83%, respectively, compared with the same period last year. The expense rate decreased 3.26pcts compared with the same period last year, mainly due to the fact that the company began to control personnel growth in 2022H2, and with the rapid growth of revenue, the scale effect on the cost side is highlighted. In a single quarter, 2023Q2 achieved revenue of 994 million yuan, + 54.94% year-on-year, + 25.86% month-on-month; net profit of 176 million yuan, + 79.24%, + 115.69%, showing a clear trend of improvement.
The revenue growth rate of domestic and overseas main business is + 101% and 22% respectively over the same period last year. Specifically, 1) domestic main business: 2023H1 revenue 1.103 billion yuan, year-on-year + 100.99%, mainly benefited from 1) a number of delayed projects in the field of special equipment have been transferred to the normal delivery stage to achieve performance release, superimposed a number of precision guidance projects smoothly converted to production and entered the batch delivery phase, the demand is good, while Wuxi Huashi plate R & D, bidding and production delivery rhythm continues to meet the standard. 2) the company continues to expand its marketing network in industrial, security, consumer electronics and other commercial markets, and benefits from the recovery of demand.
2) overseas main business: 2023H1 revenue is 647 million yuan, + 21.88% compared with the same period last year. In the first half of 2023, the company continued to strengthen the layout of overseas business, with the leading infrared thermal imaging technology and product quality, to achieve comprehensive expansion in the outdoor sports, industrial measurement and security vision market.
Risk factors: the demand for special equipment is lower than expected; the risk of project delivery delay; the company's new business development is not as expected; the company's fund-raising project progress is not as expected; market competition is intensifying day by day.
Profit forecast, valuation and rating: benefiting from positive factors such as the normalization of delivery rhythm of many special equipment projects in China, 2023H1's revenue / homing net profit has shown a momentum of rapid growth. We have raised the company's annual EPS forecast for 2023-24-25 to 1.29 EPS 1.80max 2.51 yuan (the original forecast was 1.16ppb 1.65x2.26 yuan), combined with the historical valuation level (the average Forward PE in the past year is about 50 times). Based on the 50x PE in 2023, the target price is 65 yuan, maintaining the "buy" rating.