Event: the company released its mid-2023 report, with steady revenue growth, year-on-year decline and significant improvement compared with the previous year.
In 2023, the revenue of H1 company was 53.358 billion yuan, + 5.78% compared with the same period last year, and the net profit was 295 million yuan,-24.23%, + 851.61%, and 206 million yuan, 14.97% respectively. The company's net profit fell compared with the same period last year, which improved significantly compared with the same period last year.
The production and sales of the company's copper processing products have increased, the sales of new energy products have increased, and the flat line development project has continued to advance. In the first half of 2023, the company achieved a total output of 911900 tons of copper and copper alloy materials, an increase of 7.75 percent over the same period last year, and external sales of 875400 tons, an increase of 16.74 percent over the same period last year. In the first half of 2023, the company sold 86500 tons of copper products in new energy vehicles, photovoltaic, wind power and other fields, an increase of 10% over the same period last year. In the field of electromagnetic flat line, at present, the company has a total of 97 new energy electromagnetic flat line development projects, 41 of which have been designated, a total of 18 high voltage platform projects have been designated, and a number of strategic customers have reached the intention of cooperation. it has realized the batch supply of many 800V high voltage platform electromagnetic flat line projects.
The construction of production capacity of flat lines and magnetic materials continued to advance. By 2023, the company's new energy electromagnetic flat line has formed a production capacity of 20,000 tons, and the construction of the "annual production capacity of 40,000 tons of new energy vehicle electromagnetic flat line project" is progressing smoothly. after the project reaches production, it will further meet the applications of new energy vehicles, photovoltaic and other industries. Baotou's "annual output of 8000 tons of high-end manufacturing high-performance rare earth permanent magnet materials and devices project" is progressing smoothly. The first phase of the project has now entered the stage of installation and commissioning. The commissioning of the new project will continue to deepen the layout of the company's high-end areas and further improve the level of customer service.
Investment suggestion: the company's capacity increment and quality improvement, with the copper processing (including flat line) and high-performance NdFeB new production capacity put into production, it is predicted that the company's revenue in 23-25 will be 1071.69 billion yuan, respectively, and the net profit of its mother will be 6.94 billion yuan / 1.267 billion yuan respectively; corresponding to 23-25 PE13.63/10.43/7.46 times, the company will maintain its "buy" rating.
Risk hint: copper processing output is not as expected; flat wire output is not as expected; competition in NdFeB industry is intensified.