The demand of photovoltaic industry is strong, and the profit of Q2 is high compared with the previous month. In the first half of 2023, the company achieved operating income of 2.82 billion yuan, an increase of 37.61% over the same period last year, a net profit of 128 million yuan, an increase of 40.86%, and a net profit of 107 million yuan, an increase of 47.34% over the same period last year. Of this total, the operating income in the second quarter was 1.576 billion yuan, an increase of 45.91% over the same period last year; the net profit was 102 million yuan, up 126.62% over the same period last year; and the net profit after deducting non-return was 80 million yuan, an increase of 120.27% over the same period last year.
The production capacity of photovoltaic aluminum frame is expanding steadily and the market share continues to increase. The company's photovoltaic aluminum profiles and aluminum parts production capacity continues to expand, 100000 tons of photovoltaic aluminum parts project was put into production this year, Q2 production capacity reached full production at the end of climbing. At present, the company has a production capacity of 300000 tons, with photovoltaic products accounting for about 80%.
In addition, the company began to build plants in Malaysia and Vietnam, with aluminum frame and recycled aluminum production capacity of 120000 tons each expected to be put into production in the second half of 2024. The company plans to achieve more than 25% market share in photovoltaic aluminum frame subdivision by the end of 2025.
The new energy auto parts project was gradually put into production this year to create a new profit growth point. The company has put into construction a 100000-ton aluminum parts project for new energy vehicles in Chuzhou High-tech Zone, Anhui Province. The first phase of 50,000 tons will be trial-produced in June this year. The second phase of 50,000 tons is expected to be installed and debugged in the third quarter, and is expected to be put into production in the fourth quarter. The main products include battery trays, front and rear bumpers, threshold beams and other products, which is expected to become another profit growth point of the company.
The 600000-ton recycled aluminum project is progressing steadily, and low cost is expected to increase product profits. The company's self-built 50, 000-ton recycled aluminum project has been put into production, and another 600000-ton recycled aluminum project is expected to be put into production by the end of 2023, 24 and 25 respectively. The use of recycled aluminum is expected to effectively reduce the production cost of 300-500 yuan / ton. As the company's recycled aluminum project is put into production in batches and the usage increases gradually, the profit per ton of production capacity is expected to continue to increase.
Investment suggestion: the company benefits from the high demeanor in the field of photovoltaic and new energy vehicles, the production capacity of aluminum profiles and aluminum components continues to expand, while the layout of recycled aluminum projects to reduce production costs, performance growth is sustainable. It is estimated that the company's operating income from 2023 to 2025 will be 105.79, 13.143 billion yuan, a year-on-year growth rate of 102%, 24.06%, 24.24%, and 499 million yuan, respectively, with a year-on-year growth rate of 72.99%, 23.73%, 23.92% and 3.38 yuan per share, respectively. Maintain the "overweight" rating.
Risk hint: the construction progress of the project is not as expected, the downstream demand growth is not as expected, and the processing fee is falling.