The company's 2023H1 revenue grew by 37.61% year-on-year, and its home net profit grew by 40.86% year-on-year. The company disclosed its semi-annual report of 2023: revenue in the first half of 2023 was 2.82 billion yuan (+ 37.61% compared with the same period last year), net profit was 128 million yuan (+ 40.86%), and non-return net profit was 107 million yuan (+ 47.34%).
Among them, the revenue in the second quarter was 1.576 billion yuan (month-on-quarter + 26.69%), the net profit was 102 million yuan (month-on-month + 288.22%), and the non-return net profit was 80 million yuan (month-on-quarter + 198.02%). The company's performance growth rate in the first half of 2023 was steady, including a substantial increase in net profit in the second quarter, nearly three times that of the previous quarter.
2023H1 capacity utilization increased superimposed cost reduction, the company's profitability has been improved. In the first half of this year, the company's industrial aluminum products achieved revenue of 1.669 billion yuan (year-on-year + 56.06%) and gross profit of 215 million yuan (year-on-year + 63.99%); revenue of industrial aluminum profile products reached 978 million yuan (year-on-year + 17.01%) and gross profit 106 million yuan (year-on-year + 34.01%). The increase in revenue and profits is mainly due to the current high level of production line automation, coupled with the improvement of demand, capacity utilization gradually increased to close to the saturated level, resulting in a reduction in costs.
The new energy auto parts project is carried out as scheduled, and the second growth curve helps the company. In May 2022, the company announced that it plans to build a lightweight aluminum alloy auto parts manufacturing project in Chuzhou High-tech Industrial Development Zone, with a design capacity of 100,000 tons per year. including battery trays, front and rear bumpers, anti-collision beam three main products. The project is divided into two phases, with a production capacity of about 50,000 tons. Trial production has been started one after another in mid-June, and mass production and sales are expected to begin in July; equipment orders for the second phase of the project have been issued, and Q3 is expected to be installed and debugged, and Q4 is expected to be put into production.
Layout of 600000 tons of recycled aluminum project, the production capacity can be fully matched with its own production of aluminum products. In January 2023, the company issued a pre-plan for the non-public offering of A-shares to raise funds for the construction of the "600000 tons of recycled aluminum project", which was approved by the CSRC in June 2023. The design and construction period of the project is three years, and the cost is expected to be reduced by about 400 yuan / ton after it is put into production. It is expected that the first phase of production capacity will be released from the end of this year to the beginning of next year, about 250000 tons will be released next year, and production can be reached by 2025. The production capacity of recycled aluminum bars is expected to achieve internal digestion.
Risk tips: the risk of large fluctuations in aluminum prices; the risk of a decline in gross profit margin caused by fierce market competition.
Investment advice: maintain profit forecasts and maintain "buy" ratings. It is estimated that the company's operating income from 2023 to 2025 is 79.72 million yuan, an increase of 88.86%, 28.29%, 34.11%, 3.445%, 703 million, and 83.25%, 43.90%, 41.88%, respectively, and the diluted EPS is 2.33, 336, 4.77 yuan, and the current share price corresponds to PE 15.410.87.5 x. Taking into account the company's obvious financing cost advantages, clear capacity planning, strong guarantee and supply capacity, good adhesion with downstream customers, definite growth, and maintain the "buy" rating.