Event: The company released its semi-annual report for 2023. According to the announcement, 23H1 achieved operating income of 2,010 billion yuan, a year-on-year increase of 6.26%, a year-on-year increase of 270 million yuan, a year-on-year increase of 33.74%, net profit after deducting 269 million yuan, an increase of 36.84% over the previous year. In a single quarter, 23Q2 achieved operating income of 1,119 million yuan, an increase of 6.51% over the previous year, and achieved net profit of 153 million yuan, an increase of 24.16% over the previous year.
Key points of investment
The revenue side grew steadily, with freezers contributing mainly to the increase. The company Q2 continued the relatively good growth trend of Q1, with a relatively rapid increase in production and sales volume. In the first half of the year, the production/sales volume was 7816/8514 million units, up 17.61%/13.38%, and the production rate was as high as 108.9%. By category, the 23H1 basic plate business, commercial refrigerated display cases achieved revenue of 1,354 billion yuan, +24.8% over the same period last year, contributing a major increase of 10 pct to 67.4% over the same period last year; the commercial refrigerated display cabinet business achieved revenue of 3.96 billion yuan, -7.9% year-on-year, mainly received Individual customer marketing strategy adjustments have had an impact, but thanks to the expansion of the customer base, sales of refrigerated products have achieved steady growth, and we are optimistic that subsequent customer development will increase; supermarket display cases are under pressure in the short term, and revenue has declined -50.8% year on year to 115 million yuan. As the expansion of the convenience store chain industry continues to advance steadily, this business is expected to usher in improvements; the product structure of smart commercial sales containers continues to improve and the high-end market share continues to increase. At the same time, software and hardware have continued to be iteratively upgraded. In the first half of the year, we finally achieved revenue of 82 million yuan, and the performance declined slightly by 1.1% year on year in a sluggish market environment. Strong Very good. Furthermore, according to the announcement, 23H1's overall export business has continued to recover well since 22 years, and its global market share is expected to continue to rise.
Gross margin has increased markedly, and cash flow has improved dramatically. 23H1/Q2's gross margin was 28.28%/29.20%, up 5.89pct/6.59pct year-on-year, mainly due to improvements in customer and product structures, falling commodity prices, and RMB depreciation. The expense ratio has increased. The 23Q2 sales/management/R&D/finance expense ratio was 5.71%/2.18%/2.68%/-2.92%, respectively, compared to +1.70 pct/+0.01pct/+0.76 pct/-0.84 pct. Among them, the sales expense ratio increased markedly, mainly due to increased marketing, overseas sales, after-sales maintenance expenses, and sales staff remuneration. The financial expense ratio was improved due to an increase in bank deposit interest income; at the same time, Q2 accounts receivable bad debt loss was 0.
6.1 billion yuan, an increase of 112% over the same period last year, leading to a 2.8-pct increase in credit impairment loss/revenue to 4.42%.
On the net profit side, the 23H1/23Q2 company's net interest rate was 13.40%/13.67%, year-on-year +2.15 pct/+1.24 pct. 23H1/Q2 Net operating cash flow was $0.31/015 million, up 116.3%/117% respectively from the same period last year. This was mainly due to a year-on-year increase in cash received from sales of goods and services, and a marked increase in cash repayment capacity.
Investment suggestions: The company's basic business is steady, products and technology continue to be upgraded. With leading product service capabilities and flexible production competitive advantages, the company's global customer base is expected to accelerate expansion and product market share is expected to increase further. As channel intelligence in the FMCG industry accelerates, the company's software and hardware advantages will gradually be highlighted, and long-term growth space is expected to gradually open up. The company's revenue for 2023-2025 is expected to be 31.51/37.48/4.351 billion yuan, respectively, up 8.5%/18.9%/16.1% year on year, and net profit of 4.06/493/588 million yuan, up 39.1%/21.3%/19.3% year on year. The corresponding EPS is 1.05/1.28/1.52 yuan, respectively. The corresponding EPS is 1.05/1.28/1.52 yuan, respectively, covered for the first time, and given a “holding-B” rating.
Risk warning: Market demand falls short of expectations, unfavorable fluctuations in raw material prices, increased competition in the industry, etc.