Xingshuai released the 2023 semi-annual report, during the reporting period, the company achieved a total operating income of 1.55 billion yuan, + 126% compared with the same period last year, and a net profit of 120 million yuan, + 51% year-on-year. Among them, Q2 achieved a total operating income of 980 million yuan in a single quarter, + 146% year-on-year, and a net profit of 70 million yuan, + 81% over the same period last year.
Benefiting from the volume of photovoltaic business, the company's revenue increased by 126% compared with the same period last year. In terms of business, the company's photovoltaic industry earned 1.11 billion yuan in the first half of 2023, + 376% year-on-year; white power industry 360 million yuan,-1% year-on-year; and motor industry 80 million yuan, + 3.4% year-on-year. In terms of photovoltaic business, Star Shuai's subsidiary Fuller New Energy can currently achieve an annual capacity of 1.5 GW of photovoltaic modules. At the same time, the 2GW project funded by convertible bonds is expected to be completed and gradually put into production by the end of this year. In the future, it is planned to further achieve the annual production capacity of 5GW in the shortest time. The continuous landing of new production capacity is expected to drive the company's revenue to continue to increase. In terms of home appliance business, the supply side of the home appliance manufacturing industry has gradually recovered since the beginning of the year, leading to a pick-up in demand for starters and thermal protectors, and we expect that the revenue side will become regular in the second half of the year compared with the same period last year. In terms of motor business, the company continues to promote the transformation of Zhejiang Motor to the field of new energy vehicles, reached a cooperation with BYD last year, and currently accepts factory inspection work from some new energy vehicle manufacturers, which is expected to inject new vitality into the company's development in the future.
The gross profit margin of photovoltaic + white power business increased compared with the same period last year, during which the expense rate was well controlled and the net interest rate improved compared with the previous year.
As the main business model of the company's photovoltaic module foundry business is to earn fixed processing fees, it benefited from the decline in upstream silicon / wafer prices in the first half of the year, with a gross profit margin of + 3.2 pcts to 11.1% compared with the same period last year. With the gradual increase in the utilization rate of the company's new capacity, there is still room for profitability to rise under the scale effect. White power business, benefiting from the year-on-year decline in the prices of copper, aluminum, steel and other bulk raw materials, the gross profit margin was + 0.8pcts to 30.5%; as the motor business is in the transformation stage, the gross profit margin is-12.2 pcts to 8.4%.
In terms of period expenses, the rates of sales / management / R & D expenses are 0.7%, 2.1%, 3.5%, respectively, compared with the same period last year. With the support of the volume growth of photovoltaic business, the rates of various expenses have dropped somewhat. The return to the mother net interest rate is 7.4%, a significant improvement from the 6.1% level for the whole year of 2022.
Look forward to the resumption of the main business of home appliances and be optimistic about the future layout of the energy storage field. In the second half of the year, a number of policies to promote the consumption of household appliances have been issued all over the country, and the recovery of terminal demand will strongly boost the demand for upstream parts. In addition, the company reached a cooperation with Changfeng Intelligence last year, and the follow-up extension in the field of energy storage is also worth looking forward to.
Investment suggestion: we expect the company to achieve total operating income of 100 million yuan in 2023-2025 respectively, which is + 66%, 124% and 17% respectively compared with the same period last year. The net profit achieved by the parent company is 5.6 million yuan, and the year-on-year profit is + 122%, 71% and 24%, respectively. The current stock price corresponds to the valuation of PE in 15-9-7. Considering the steady recovery of the company's main business and the rapid expansion of the photovoltaic business, the investment rating of "highly recommended" is maintained.
Risk tips: photovoltaic demand is lower than expected, raw material prices fluctuate, industry competition intensifies, and so on.