Event: the company released the 23-year mid-year report that 23H1 realized revenue of 21.571 billion yuan (+ 4.86%) and net profit of 213 million yuan (- 24.02%); 23Q2 realized revenue of 11.991 billion yuan (+ 7.77%) and net profit of 119 million yuan (- 28.87%).

The revenue side keeps growing, the profit side is under pressure, and 3D printing structures are delivered in bulk. Sub-business point of view: 1) Metal materials plate: copper-based materials revenue 20.671 billion yuan (+ 4.89%), gross profit margin 2.87% (- 1.56pct) The revenue of steel-based materials is 342 million yuan (- 19.98%) and the gross profit margin is 1.31% (- 3.79pct). Although the business in this sector is affected by the competition pattern of the industry, the macroeconomic environment at home and abroad and downstream consumption and other factors, the market profit space is compressed, but the whole still maintains a steady development. 2) carbon fiber composite and high-end equipment plate: carbon fiber composite (subsidiary Skybird high-tech) achieved revenue of 318 million yuan (+ 6.53%) The revenue and profit of high-end thermal equipment and new materials (subsidiary top technology) increased rapidly, with revenue of 240 million yuan (+ 44.99%) and net profit of 42 million yuan (+ 114.93%). Mainly due to the company's 3D printing structure mass delivery and tantalum carbide coating project completed and put into production.

In the past three quarters, the performance has increased continuously compared with the previous quarter, and the expense side has further improved. In a single quarter, the profit improvement trend of the company since 22Q3 is clear. 22Q4 has reversed its losses since the loss of 22Q3, and the net profit of 23Q1 has increased 181.88% month on month. 23Q2 has returned to 119 million yuan, an increase of 25.19%. Looking forward to the second half of the year, the company's performance is expected to continue to improve. The expense rate of 23H1 during the period was 3.57%, a decrease of 0.45pct compared with the same period last year, of which the R & D expense rate was 2.10%, which was lower than that of the same period last year (0.5pct), mainly due to a sharp decline in test processing fees and other R & D expenses; the financial expense rate of 0.40% (+ 0.03pct) was mainly due to an increase in exchange losses compared with the same period last year.

The construction and production of key projects such as tantalum carbide and carbon fiber composites have been steadily advanced. In the first half of the year, Dingli Technology continued to increase the construction investment of the "Tantalum Carbide industrialization Project", which has now been completed and put into production, and the company's product layout in the field of third-generation semiconductor materials has been further improved. According to the company announcement, after the full release of production capacity, it is expected to contribute about 200 million yuan in annual output value. The first phase of Wuhu Skybird's "R & D and production Project of High performance carbon Fiber Composites" has been put into production, the production capacity and market are in running-in, and the project benefits need to be further enhanced.

According to the changes of gross profit rate and expense rate in 23 years, the eps in 23-25 years is 0.45,0.55,0.66 yuan (originally 0.51,0.62,0.74 yuan). With reference to the average valuation of comparable companies in 23 years, the segment valuation method is used to maintain the buying rating.

Risk hint

The impact of large fluctuations in copper prices on processing fees; capacity release is less than expected.