二季度业绩保持高增，盈利能力持续改善。受益于下游强劲需求，公司Q2生产经营保持高增态势，实现了单季营收同、环比正增长。公司Q2 营收10.3 亿元，环比增长4.7%；归母净利润0.55 亿元，环比增长39.3%。随着新能源业务逐步上量以及上游大宗材料价格下行，公司毛利率在Q2 快速恢复，3Q22、4Q22、1Q23、2Q23 的单季度毛利率分别为10.6%、13.2%、12.3%、15.2%，我们看好毛利率逐步修复对公司业绩的提振以及未来的持续向好。The performance is in line with our expectations
The company announced 1H23 results: revenue 2.021 billion yuan, up 19.23% over the same period last year; return to the mother net profit of 95 million yuan, corresponding to 0.23 yuan per share, up 35.84% from the same period last year, in line with our expectations.
Trend of development
The performance in the second quarter maintained a high growth, and profitability continued to improve. Benefiting from the strong demand downstream, the company's Q2 production and operation maintained a high growth trend, achieving a single-quarter revenue growth, month-on-month positive growth. The company's Q2 revenue was 1.03 billion yuan, an increase of 4.7% over the previous month; the net profit returned to its mother was 55 million yuan, an increase of 39.3% over the previous month. With the gradual increase in new energy business and the downward price of upstream bulk materials, the company's gross profit margin recovered rapidly in Q2. The single-quarter gross profit margins of 3Q22, 4Q22, 1Q23 and 2Q23 were 10.6%, 13.2%, 12.3% and 15.2%, respectively. We are optimistic that the gradual repair of gross profit margin will boost the company's performance and continue to improve in the future.
Riding on the Dongfeng of the new energy vehicle industry, the electric drive business continues to develop. With the continuous improvement of the penetration of new energy vehicles, the company's electric drive business is growing rapidly. The focus of the company's business is on drive motors. With the continuous pursuit of electric drive system integration, high power and multi-motors in the downstream market, the ASP of the company's drive motor business has increased from 500,800 yuan to 5000 yuan. At the same time, the rapid iteration of distributed drive and oil-cooled motor technology also improves the manufacturing process of stator and rotor and motor assembly, and drives the value up. At the customer level, the company is the core supplier of Huawei automobile electric drive system, and its products also cover domestic head vehicle factories and parts companies, such as Geely Weirui, BYD, United Microelectronics Corp, Shanghai Electric Drive, Dongfeng Electric Drive and so on. We believe that the rapid iteration of electric drive system technology and the continuous expansion of the company's customers will lay a solid foundation for the rapid development of the company's new energy business.
The two-wheeled vehicle and home appliance industry is showing a recovery trend, the company continues to increase the battery structure business. We believe that with the support of local consumer stimulus policies, consumer confidence has been gradually boosted, and the domestic two-wheeler and home appliance market may show a trend of recovery, while the company ranks first in the domestic electric two-wheeler motor stator and rotor market share, or will fully benefit from the industry growth. During the reporting period, the company continued to increase the battery precision structure business, provided 350 million yuan guarantee loan for the subsidiary Xinqian New Energy, and continued to expand the core parts business of new energy vehicles. We believe that the expansion of new business such as battery structural components is expected to help the company's performance to gain more room for follow-up development.
Profit forecast and valuation
We keep our profit forecasts for 2023 and 2024 unchanged, with a net profit of 253,328 million yuan respectively.
The current share price corresponds to a price-to-earnings ratio of 21.7 times 2024 / 16.7 times earnings for 2023 Universe. Maintain an outperform industry rating and a list price of 18.33 yuan, corresponding to 29.3 times 2023 price-to-earnings ratio and 22.6 times 2024 price-to-earnings ratio, which has 35.3% upward space compared with the current stock price.
Risk
The sales volume of the whole vehicle market is lower than expected, the expansion of new energy business is not as expected, and cost control is not as expected.
