Event: the company released its 2023 semi-annual report on August 18. In the first half of 2023, the company achieved operating income of 2.205 billion yuan, an increase of 24.06% over the same period last year, and the net profit belonging to shareholders of listed companies was 222 million yuan, an increase of 184.43% over the same period last year, exceeding our expectations.
Overseas business has bucked the trend and increased substantially. In the face of the complex and changeable economic environment and regional conflicts in the global market, overseas inflation and weak consumption and other factors, export growth slowed down, but under the influence of RCEP policy, European deindustrialization and carbon neutralization, the company, by strengthening localization management, optimizing the governance structure of overseas subsidiaries, strengthening overseas inventory and operation management, achieved overseas operating income of 761 million yuan in the first half of 2023, an increase of 61.48% over the same period last year. Continue to maintain substantial growth. Among them, the overseas sales of industrial automation products, UPS and photovoltaic inverters have all achieved good growth, especially in emerging markets, CIS, Africa, America and other regions.
The second growth curve diverges, and the growth rate of new energy vehicles in optical storage business slows down. In the context of the overall destocking of new energy vehicles, the growth rate of new energy commercial vehicles and passenger vehicles slowed down, and the company's new energy vehicle business achieved business income of 270 million yuan in the first half of the year, an increase of 20.45 percent over the same period last year. Photovoltaic energy storage business continues to compete fiercely in China, the company actively promotes team action, marketing and brand building, launches new energy storage products, technology iteration, and continues to improve product power, with a business income of 216 million yuan in the first half of the year, an increase of 145.07% over the same period last year.
Optimize process management, industrial control network energy steady growth. In 2023, H1, the industrial automation business continued to make up for its shortcomings, optimized the LTC process, adjusted the sales structure, benefited from domestic substitution, and achieved a business income of 1.224 billion yuan, an increase of 8.80% over the same period last year. The network energy business adjusted its organizational structure and optimized its internal management, achieving a business income of 380 million yuan, an increase of 19.10% over the same period last year. Through optimized management, the company reduced the expense rate, and the sales / management / financial expense rate was 8.89%, 4.95% and 0.41% respectively, a decrease of 0.27/0.85/0.25pct compared with the same period last year.
Investment suggestion: the company is a leading provider of industrial automation and energy power solutions in China, focusing on the upstream IGBT business layout, based on the industrial control traditional business base, to expand the field of new energy business.
Achieved good results in the first half of the year, we are optimistic that the company's industrial control frequency converter, data center UPS to maintain steady growth; new energy vehicles electronic control, optical storage inverter rapid volume, driving the overall performance of the company. It is estimated that the company's operating income from 2023 to 2025 will be 5.624 billion yuan, 7.298 billion yuan and 9.262 billion yuan respectively, and the net profit will be 455 million yuan, 592 million yuan and 738 million yuan respectively, up 65.4%, 30.2% and 24.6% over the same period last year. The corresponding EPS is 0.57,0.74,0.93 respectively, and the corresponding PE of the current stock price is 22-17-14.
Risk tips: raw material shortage and price fluctuation risk; optical storage business market expansion is not as expected; capacity expansion is not as expected; overseas situation risk and exchange risk.