Events:
According to the semi-annual report for 2023, the company achieved 851 million yuan in revenue in the first half of 2023, + 8.9% year-on-year, 19 million yuan in net profit,-27.8% in year-on-year, 13 million yuan in net profit after deducting non-return,-46.3% in year-on-year, of which 2023Q2 realized revenue of 462 million yuan, + 30.9% in the same period last year, and net profit in 13 million yuan, + 522.8% in the same period last year. The net profit after deducting non-return is 9 million yuan, which is + 277.8% compared with the same period last year.
Revenue side: 23H1 revenue of 851 million yuan, year-on-year + 8.9%, steady recovery. 22H1 achieved revenue of 851 million yuan, year-on-year + 8.88%, including chassis business revenue of 494 million yuan, year-on-year + 2%; compressor business revenue of 223 million yuan, + 9.4%; precision processing business revenue of 71 million yuan, + 4.8% year-on-year; and lightweight business revenue of 50 million yuan, + 473.2% year-on-year. 23H1, with the partial recovery of the automobile market, chassis, compressor and precision processing business increased to varying degrees compared with the same period last year, and the revenue scale of the lightweight business increased significantly, mainly due to the rapid increase of customers such as BYD.
23Q2 achieved revenue of 462 million yuan in a single quarter, + 30.9% year-on-year and + 18.9% month-on-month. The year-on-year increase was mainly due to the containment of the 22Q2 epidemic. In the same period last year, the revenue base was low, and the month-on-month improvement continued.
Gross margin: 23Q2 gross margin 18.12%, year-on-year + 3.12pct, month-on-month + 0.84pct. 23Q2 annual gross profit margin is 18.12%, year-on-year + 3.12pct, month-on-month + 0.84pct. In the first half of the year, compared with the same period last year, the price of bulk materials decreased and the company took various measures to reduce costs and increase efficiency, and the company's gross profit margin improved compared with the same period last year.
Profit end: 23Q2's home net profit is 13 million yuan, + 522.8% compared with the same period last year, and + 123.7% compared with the previous year.
The growth rate of the company's 23Q2 profit far exceeds the revenue growth rate, mainly due to the increase in gross profit margin and the decrease in the expense rate during the period. The expense rate during the 23Q2 period is 13.4%, year-on-year-2.54pct. Specifically, the company's quarterly sales / management / finance / R & D expense rate is 2.19%, 4.86%, 1.66%, 4.69%, respectively, and decreases to varying degrees compared with the same period last year.
Bind big customers and lighten the business to meet new growth opportunities. At present, the main products of the company's lightweight business are valve islands, control arms, battery package connection blocks, and so on. Customers cover domestic and foreign well-known vehicle manufacturers and first-class auto parts suppliers, such as BYD, ZF ZF, Saks, etc., among which BYD has a larger cooperation scale. we think that in the future, with the continuous deepening of the cooperation products between the company and BYD, the sales volume of superimposed BYD will grow rapidly, and the lightweight business is expected to contribute significantly.
Investment advice and profit forecast: the company's operating income from 2023 to 2025 is expected to be 19.77,22.57 and 2.555 billion yuan respectively, and the return net profit is 0.82,0.95 and 110 million yuan respectively. Corresponding to the current market capitalization, PE is 31,27 and 23 times respectively. Maintain the "overweight" rating.
Risk tips: the risk of macroeconomic fluctuations, the sharp rise in raw material prices, the lower-than-expected sales of new energy vehicles, the lower-than-expected launch of new capacity, the continuation of chip shortage, and the progress of new product research and development.