Event: the company released its semi-annual report of 2023, with operating income of 4.89 billion yuan in the first half of 2023, a decrease of 35.94% over the same period last year, a net profit of 60 million yuan, a decrease of 91.49% over the same period last year, and a net profit of 30 million yuan, a decrease of 95.80% over the same period last year.
Comments:
Company profit month-on-month repair. The operating income of 2023Q2 is 2.955 billion yuan, the net profit is 64 million yuan, and the non-return net profit is 51 million yuan, which is improved from the previous month.
The company's gross profit margin is 7.24%, month-on-month ratio + 3.65pct, net profit rate 2.15%, month-on-month ratio + 2.10pct. 2023Q2 deepens customer cooperation through continuous technical optimization and product iterations to achieve profitable month-on-month repair.
Production capacity continues to expand. The company continues to promote the second phase of the expansion of automotive lithium battery cathode materials, the annual output of 60,000 tons of lithium iron phosphate project, lithium iron phosphate cathode materials completed batch stability verification and small batch trial production, the company expects to carry out batch shipments in the third quarter.
The product structure continues to upgrade. In terms of sodium electricity, the company completed the transformation of the tonnage production line to achieve small batch shipments of sodium cathode materials; in terms of high nickel and ultra-high nickel, the stability of the second generation high power and high nickel NCA was improved, and the ultra-high nickel ternary materials passed the large cylindrical power battery project audit; high voltage fast charge medium and high nickel ternary materials developed iterations, further reduced, and the production line batch stability samples have passed customer evaluation.
Profit forecast and investment rating: we expect the company to achieve 121,146,16.6 billion yuan in revenue from 2023 to 2025, with a net profit of 4.6, 7.8 and 1.07 billion yuan, respectively, compared with the same period last year. As of August 22, 2023, the market capitalization corresponds to the 25-year valuation of 24 PE, which is 17 times that of 24 Universe, and is rated as "overweight".
Risk factors: lower-than-expected risk of demand for new energy vehicles; iterative change risk of lithium battery technology; risk of higher-than-expected fluctuation of raw material prices; environmental protection and production safety risk.