Event description. The company released its 2023 semi-annual report on August 21, 2023. During the reporting period, the company realized operating income of 2.451 billion yuan, an increase of 43.38% over the same period last year, a net profit of 168 million yuan, an increase of 121.2% over the same period last year, and a non-return net profit of 164 million yuan, an increase of 148.78% over the same period last year. Basic earnings per share is 0.9427 yuan per share. 23Q2 achieved operating income of 1.303 billion yuan, an increase of 36.05% over the same period last year; net profit of 85.9951 million yuan, an increase of 105.52% over the same period last year; gross profit margin of Q2 17.45%, year-on-year + 0.36pct, month-on-month ratio of-1.06pct; net profit rate of 6.60%, year-on-year + 2.25pct, month-on-0.58pct.
The performance of Q2 increased steadily, and the designated projects benefited from mass production. The growth of the company's operating income is mainly due to the mass production of designated projects and the expansion of sales scale. Among them, the revenue of new energy vehicle body structures and power battery boxes was 1.33 billion yuan, accounting for 54.34%; the revenue of fuel vehicle related structures was 430 million yuan, accounting for 17.56%; the revenue of communication equipment related structures was 336 million, accounting for 12.51%; and the revenue of precision stamping moulds and metal structures for energy storage equipment was 307 million, accounting for 12.51%.
Continue to get new orders, future performance is guaranteed. The intention of the project is sufficient, and the company has obtained the customer's letter of intent for the project from January to June 2023, and the total amount of the project is expected to be 280,28.5 billion yuan. Downstream customers cover new energy vehicles, power batteries, energy storage and photovoltaic inverters, communication servers and other industries. The number of new orders signed in the new energy sector has increased significantly. By the end of April 2023, the intentional orders for new energy vehicle body components, power battery box and optical storage products signed based on the planned production capacity are about 4.5 billion yuan, 9.9 billion yuan and 1.5 billion yuan respectively. In terms of optical storage business, the company recently obtained the winning letter from a customer of photovoltaic inverter and energy storage head, confirming that the company is the supplier of its energy storage structure, industrial and commercial inverter assembly and structure project, the total project amount is expected to be RMB 9-1 billion, and the project cycle is 2-4 years. In the future, the winning project will bring 225 million yuan to 500 million yuan in revenue for the company, which is expected to have a positive impact on the company's sales performance in the next 2-4 years.
With the diversified development of customer structure, we will benefit from continuous volume in the future. 1) in the automotive field, the company has established in-depth cooperation with GAC Eian, BYD, XPeng Inc. and other auto companies, as well as Bentler, Foggia and other parts enterprises. 2) in the field of power battery, the company signed a strategic cooperation agreement with Ningde to further deepen the cooperation between the two sides in the field of battery Pack box components, stamping parts, thermal management system products, energy storage cabinet, thermoforming and roll forming technology and other products or projects, ASP is expected to be further improved in the future. 3) in the field of energy storage and photovoltaic, Xiangxin Technology has started to supply domestic and foreign well-known enterprises such as Huawei, Xineng'an, Enphase Energy, Larsen, FENECON GmbH, Jinlang Technology, Xiamen Haichen, Honeycomb Energy and so on.
Investment suggestion: from 2023 to 2025, we expect the company to achieve revenue of 65.90 million, 9571 million, 12.727 billion yuan, and net profit of 4.89 million yuan, 7.98 billion yuan, and the price-to-earnings ratio of August 21, 2023, corresponding to 23-25 years, is 15, 9 and 7 times, respectively. Considering that the company ploughs moulds and metal structures, and focuses on the layout of new energy racing tracks, including new energy vehicle structures, power battery boxes and optical storage equipment, the future demand continues to release, there is plenty of room for growth, and the "recommended" rating is maintained.
Risk hints: macroeconomic and market demand is lower than expected; production capacity expansion is not as expected; raw material price fluctuation risk.