Event: according to the company's semi-annual report for 2023, 2023H1 achieved operating income of 2.455 billion yuan, an increase of 0.40% over the same period last year; net profit of 165 million yuan, an increase of 5.53% over the same period last year; and net profit of 164 million yuan, an increase of 3.01% over the same period last year. From a quarterly point of view, 2023Q2 achieved an operating income of 1.349 billion yuan, an increase of 13.46% over the same period last year, a net profit of 98.5451 million yuan, an increase of 2.87%, and a non-return net profit of 109.5022 million yuan, an increase of 14.66% over the same period last year.
The growth of general lighting is under pressure, and the rapid expansion of vehicle business supports growth. 2023H1 achieved an operating income of 2.455 billion yuan, an increase of 0.40% over the same period last year, of which the vehicle business realized 337 million yuan, an increase of 99.26% over the same period last year. Thanks to the development of the new energy vehicle industry, the production capacity of the company's vehicle business continued to advance, the designated projects were mass-produced in turn, the intelligent transformation of the production line continued to upgrade, and the demand for product orders continued to grow. In general lighting, as the lighting industry matures, the global economic recovery is weak, and competition in the industry stock intensifies, the company's general lighting business achieved operating income of 2.038 billion yuan, down 6.14% from the same period last year.
The pressure on the cost side has eased and profitability has continued to improve. The company actively develops LED downstream landscape lighting, Shang Chao lighting and other new application scenes, and expands "vehicle controller + vehicle lighting".
Business, giving more added value to products, while benefiting from favorable factors such as the fall in raw material prices, 2023H1's sales gross profit margin reached 17.93%, an increase in 2.6pct compared with the same period last year, and profitability continued to improve. The sales / management / R & D expense rate of 2023H1 is 3.41%, 3.41% and 3.20% respectively, which is higher than that of the same period last year, and the performance of the expense side is relatively robust.
With the promotion of intelligent lighting transformation, the on-board business is full of stamina. In the field of general lighting, on the one hand, the company continues to focus on energy efficiency and invest in sustainable materials; on the other hand, it focuses on combining with the Internet of things to provide customers with intelligent lighting solutions. In the field of vehicle business, the company's fixed-point projects involve many host brands, such as Porsche, Audi, Volkswagen, Nissan, Dafa Toyota, Guangzhou Automobile, ideal and Geely, with a total of more than 4 billion yuan. At the same time, Wanxiang A123 BMS nearly 400 million yuan vehicle controller fixed-point project. The company's Shanghai Automotive Business exclusive R & D Center has been completed and will be officially put into use to develop customized and specialized products for customers and supplement momentum for product application broadening and iterative upgrading.
Investment suggestion: the company actively makes use of the advantages in the field of general lighting to speed up the development of vehicle lighting, constantly enrich the product matrix, gradually consolidate the customer base, and strive to create a new growth point. We estimate that the company's homing net profit from 2023 to 2025 will be RMB 3.8 million, RMB 0.99m for EPS and RMB 1.21 for PE, respectively, maintaining the "recommended" rating.
Risk hints: the risk of increased market competition; the risk of fluctuations in raw material prices; the risk that new business promotion is not as expected.