Revenue in the first half of 2023 increased by 29.19% over the same period last year, and net profit from home increased by 48.56% over the same period last year. In the first half of 2023, the company achieved revenue of 1.769 billion yuan, an increase of 29.19% over the same period last year, and a net profit of 366 million yuan, an increase of 48.56% over the same period last year. In a single quarter, the revenue in the second quarter of 2023 was 1.079 billion yuan, an increase of 39.31 percent over the same period last year, and the net profit of returning home was 249 million yuan, an increase of 61.02 percent over the same period last year. In the first half of 2023, the company's gross profit margin / net profit rate was 38.37% / 20.70% respectively, year-on-year change + 4.16 pct; / net profit margin / net profit rate in the second quarter of 2023 was 39.34% / 23.10%, respectively, year-on-year change + 4.17pm / 3.09 pct, the improvement in profitability was mainly due to: 1) the proportion of high gross vacuum pumps increased; 2) the price of raw materials decreased compared with 2022. On the expense side, in the first half of 2023, the sales / management / R & D / financial expense rates were 5.05% 3.78% 5.40% 0.58%, respectively, with a year-on-year change of-0.27, 0.89, 0.29 pct.

Vacuum pumps and compressors increased by 45% and 22% respectively. From a business point of view, the income of compressor / vacuum pump / casting / maintenance in the first half of 2023 was RMB 8.98 million, respectively, compared with the same period last year. The year-on-year income of compressor / vacuum pump / casting / maintenance was RMB 8.98 million, compared with the same period last year. The gross profit margin was 34.84%, 43.66%, 7.77%, 39.21% and 2.49 pct, respectively, compared with the same period last year.

In the compressor business, the continuous growth of human demand for central air conditioning, refrigeration and air sources drives the growth of the company's refrigeration compressors. in terms of air compressors, the company meets the needs of market segments through the development of new products. in the air compressor market does not show excessive demand growth, still achieved good results. Vacuum pump business is mainly the rapid expansion of photovoltaic industry, the company's market share continues to increase.

The vacuum pump business is growing rapidly, and breakthroughs have been made in the semiconductor field. In the photovoltaic field, the company has benefited from high prosperity + import substitution in the photovoltaic vacuum pump industry, accelerated growth in the past four years, and has become the leader of photovoltaic vacuum pumps. at present, the company has occupied the vast majority of the single crystal crystal pulling link, and the more difficult battery chip link has benefited from TOPCon production expansion + vacuum pump market share is accelerating volume, and the overall growth is expected to continue to be good. In terms of semiconductor vacuum pumps, overseas brands currently occupy about 90% of the market share. with the promotion of localization in the semiconductor field, the company's market share continues to rise. at present, it has been recognized by some domestic chip manufacturers and has begun to supply in batches. there is a broad space for domestic substitution in the future. Maintenance business, at present, the company's vacuum pump maintenance business accounts for far less than 25% of Atlas. With the increase of the company's market share in battery chips and semiconductor vacuum pumps, maintenance business is expected to continue to thicken the company's performance.

Risk tips: economic recovery is not as expected; vacuum pump business expansion is not as expected; raw material prices fluctuate.

Investment advice: the company is the leading department of domestic screw compressors and vacuum pumps, the traditional main business benefits from steady improvement in the volume of new products and new areas, vacuum pumps benefit from the expansion of TOPCon battery production and share increase, semiconductor equipment domestic substitution acceleration, taking into account the better performance in the first half of the year, we expect the company's 2023-25 net profit to return to the home of RMB 9.05pm 1.71 billion, corresponding to PE 16-13-11 times, to maintain the "buy" rating.