Events:
On August 19, 2023, the company released its semi-annual report of 2023. In the first half of 2023, the company achieved a revenue of 476 million yuan, an increase of 26.94% over the same period last year; a net profit of 87 million yuan, an increase of 16.87% over the same period last year, and a steady growth in performance; and a non-return net profit of 77 million yuan, an increase of 23.92% over the same period last year.
To promote R & D investment in superalloy technology, Shenshan Wanze completed the first phase of production expansion and construction in the first half of 23 years, and the company's superalloy product income reached 108 million yuan, an increase of 65.01% over the same period last year.
The company continues to promote R & D investment in superalloy technology, and Wanze Central South Research Institute has applied for 7 new scientific research projects, realizing the delivery of more than 3,000 finished products; Shanghai Wanze has completed a total of 15 new products, and has completed R & D and transferred to mass production. Related products have been highly recognized by customers. In terms of production capacity construction, the subsidiary Shenshan Wanze has completed the first phase of production expansion construction according to the plan. at present, it already has the production capacity of 100 pieces / year of powder plate, 100 tons / year of powder, 60 tons / year of master alloy, 10000 pieces of single crystal and directional blades and 40000 pieces of equiaxed blades.
Enhance the influence of micro-ecological live bacteria products, continue to build a north-south dual-base pattern, the company's pharmaceutical products achieved income of 359 million yuan in the first half of 23 years, an increase of 20.46% over the same period last year. The company continues to promote the market access of "Golden Bifid" and "Ding Junsheng" of microecological live bacteria products, further improve the construction of the three-tier promotion system of OTC retail, and continue to enhance the market awareness and market share of the main products. The subsidiary company, Inner Mongolia Shuangqi, continues to optimize the fermentation process and freeze-drying process of Lactobacillus bulgaricus to ensure a stable supply of bacterial powder; the new bacterial powder workshop has completed equipment debugging and process verification, and is expected to be put into production in the second half of 2023, while the Zhuhai project continues to move forward to build a north-south dual-base pattern. 23 years of equity incentive is expected to promote the company to move steadily towards strategic and business goals.
Earnings forecast, valuation and rating
We estimate that the company's operating income from 2023 to 2025 will be 11.32 billion yuan, 13.98 billion yuan, respectively, with a year-on-year growth rate of 42.58%, 23.55%, 33.02%, 2.47 / 408 million yuan, 78.72%, 35.83%, 65.06%, 0.36, 0.49, 0.80 yuan per share and 58.83%, respectively, respectively. In view of the high technical level of the company's superalloy team and actively increasing production capacity, according to the relative valuation method and with reference to the comparable company valuation, we give the company 29 times PE in 2024, with a target price of 14.07 yuan, maintaining the "overweight" rating.
Risk hint: the risk of price fluctuation of superalloy products, the risk of decline in drug collection prices, and the release of production capacity is not as expected.