Events:
The company released semi-annual report: the company's revenue in 2023 half-year was 999 million yuan, an increase of 8.28% over the same period last year; the net profit of returning to the mother / deducting non-return was 125 million yuan, up 20.37% and 28.68% respectively over the same period last year. Among them, Q2 achieved revenue of 502 million yuan in the single quarter, an increase of 22.03% over the same period last year; the net profit of returning to the mother / deducting non-returning to the mother was 0.49 million yuan respectively, up 62.72% and 90.99% respectively over the same period last year.
Multi-category performance has picked up, and orders for nuclear power valves have been gradually realized.
2023Q1-2 achieved revenue of 4.97 million yuan respectively, with year-on-year changes of-2.79% and 22.03% respectively. In terms of industry, the company's 23H1 nuclear power / energy / metallurgy / energy-saving service industry achieved revenue of 3.51 million yuan, respectively, up or down 57.66%, 13.93%, 41.92%, 53.41%, respectively, compared with the same period last year. The nuclear power industry contributed the largest revenue increase.
Continuous improvement in profitability and good cost control during the period
In terms of profitability, 2023H1's gross profit margin / return net profit rate was 30.48% and 12.55% respectively, an increase of 2.15/1.26pct over the same period last year. In terms of period fees, 23Q2's sales / management / financial rates are 7.14%, 6.27% and 1.74%, respectively, up or down from the same period last year. Among them, the increase in financial rates is due to the increase in bank loan interest paid by the company over the same period last year. In the same period, the company's R & D investment increased by 38.32% compared with the same period last year, and the corresponding R & D fee was 3.97%, an increase of 0.47pct over the same period last year.
The thrust of the traditional business is strong, and the construction of the new track continues to advance.
In terms of nuclear power and military business, the 10 nuclear power units approved by the National standing Committee in 2022 (double the number of 2021) brought a high boom to the nuclear power valve industry, while the approval of 6 units on July 31 this year is expected to continue the boom, which may boost the company's performance in the future. In terms of emerging business, in the field of hydrogen energy, the company is the only 70MPa vehicle pressure relief valve manufacturer that has passed the internal test of key customers, and some of its products have been exported abroad; vacuum valves and ultra-clean valves in the semiconductor field have also entered the prototype test and verification stage; the follow-up performance is expected to be gradually released.
Investment advice and profit Forecast
The company is a domestic special valve provider. With the steady growth of traditional business and the opening of growth space for emerging business, the performance is expected to achieve sustained growth. From 2023 to 2025, we expect the company to achieve revenue of RMB 2.371 billion, net profit of RMB 5014 million, EPS of RMB 1.01 per share, and PE of 18.49, 13.74, 10.93 times respectively, maintaining the Buy rating.
Risk hint
Industry policy risk, industry competition intensification risk, profit below-expected risk, raw material price fluctuation risk