Event: on August 18, 2023, the company released its semi-annual report of 2023. In the first half of 2023, the company achieved a revenue of 1.778 billion yuan, + 3.20% compared with the same period last year, and a net profit of 4 million yuan, which turned a loss into a profit compared with a loss of 37 million yuan in the first half of 2022.
The company's Q2 performance has recovered significantly. 2023Q2 achieved a revenue of 1.005 billion yuan in a single quarter, compared with 969 million yuan in 2022Q2, + 3.66% in the same period last year, and increased by 30.01% compared with 773 million yuan in 2023Q1. The net profit of 2023Q2 is 29 million yuan, which is significantly better than the same month-on-month comparison of-19 million yuan in 2022Q2 and-25 million yuan in 2023Q1.
The company's consumer electronics business is basically stable, and the growth of new energy related business is obvious. From the perspective of the income composition of the company's downstream application areas, the proportion of 2023H1 consumer electronics revenue is 31%, which is basically flat. Subdivided, the prosperity of the mobile phone industry has declined, and the decrease in customer demand has led to a decline in mobile phone business compared with the same period last year. Notebook business has been replaced by localization and the company's brand effect and customer recognition have been further improved, leading to a continuous increase in the share of this field and the continuous growth of related business. The proportion of revenue in the communications sector is 26%, and the overall sales revenue has declined slightly, but the profitability has increased compared with the same period last year. The company actively cooperates with customer needs to carry out related new product research and development and technical reserves. Liquid cooling related products have been delivered in batches and have been recognized by many important customers. The revenue of new energy (new energy vehicles, photovoltaic and energy storage, etc.) accounted for 33%, the related business increased significantly, some of the designated projects of new energy vehicles were gradually mass produced, the number of orders increased significantly compared with the same period last year, and the photovoltaic inverter and energy storage business increased rapidly. business revenue increased significantly compared with the same period last year. Other categories of income account for 10%.
Relying on technical advantages, the company continues to expand the downstream application areas of high-quality customers. The company has mastered a wealth of electromagnetic shielding and heat conduction technology, while closely tracking the application of the latest technology in the industry and the market, technology development trend, and continue to carry out research on new technology. to become an excellent enterprise in the electromagnetic shielding materials and devices, thermal management materials and devices industry. Relying on excellent product technology, professional service advantages and years of intensive cultivation in the industry, the company has established close cooperative relations with many well-known enterprises at home and abroad, including Huawei, Microsoft Corp, Lenovo, Samsung, Glory, XIAOMI, HP, Dell, etc., while communications customers include Huawei, ZTE, Nokia, Ericsson, Cisco Systems and so on. Data center customers include Huawei, ZTE, Microsoft Corp, Cisco Systems, Chao, Datang Mobile, Baode, Transcendence, Xinhua III, Superfusion, Oriental Communications and Facebook Inc, google, etc.; new energy vehicle customers include BYD, Guangzhou Automobile, BAIC, Geely, Suteng Juchuang, Ningde era and so on. Customers in the field of new energy, such as photovoltaic and energy storage, include Huawei, Sunshine Power, Goodway and so on.
Investment suggestion: we are optimistic about the volume of the company's new energy business, and based on the recovery of the consumer electronics business and the broad prospects of the photovoltaic and energy storage markets, with the weakening of raw material price fluctuations, the gradual climb of capacity utilization and the gradual landing of the company's cost-reduction and efficiency measures, superimposed with the gradual expansion of the company's downstream customer coverage, it is expected that the company's gross profit margin and profit margin are expected to further improve. Taking into account the above considerations to raise the company's profit forecast, the company's net profit from 2023 to 2025 is expected to be 2.270.415x594 million respectively, and the current market capitalization corresponds to a PE multiple of 41x23max 16x. Maintain the recommended rating.
Risk tips: downstream demand is lower than expected; raw material prices are lower than expected; capacity expansion is not as expected.