The company issues semi-annual report. 2023H1's operating income is 246 million yuan (- 1.22% compared with the same period last year), and its net profit is 27 million yuan (year-on-year-31.02%). In a single quarter, 2023Q2's operating income was 152 million yuan (year-on-year + 15%, month-on-month + 60.98%), and its net profit was 24 million yuan (year-on-year + 26.58%). Ring ratio + 680.40%).
It is mainly due to the continuous increase in the shipments of the company's products in the downstream core customers.
The shipments of customer products, the main core strategy in the field of consumer electronics, continued to increase. 2023Q2, the company's consumer electronic coatings achieved revenue of 125 million yuan, year-on-year + 10.31%, month-on-month + 66.58%. It is mainly due to the continuous increase of the company's market development efforts in the second quarter and the continuous increase in product shipments of the main core strategic customers.
In the consumer electronics business, the business of mobile phones, notebooks and wearable devices has grown greatly. (2023Q2, mobile paint revenue + 8.71%, month-on-month + 93.12%; notebook paint revenue + 14.45%, month-on-month + 35.14%, wearable paint revenue + 18.08%, month-on-month + 49.62%).
The monthly revenue of automotive paint business reached an all-time high. 2023Q2, the company's automotive paint achieved revenue of 23.35 million yuan, year-on-year + 34.75%, month-on-month sales exceeded 10 million yuan, a record high. Mainly due to the mass production of many new models cooperated by BYD, NIO Inc., Geely and other terminals in the second quarter, the company has achieved rapid growth in shipments of BYD, NIO Inc., Geely and ideal products compared with the same period last year.
Looking forward to the second half of the year, the company will further develop the exterior coating market, with layouts in Geely Light bumper, BYD spoiler, BYD grille and other aspects, and the automotive paint business is expected to maintain growth.
The development of paint products in aircraft, integrated circuits, car body factories and other fields is progressing smoothly. 2023H1, the first phase of the aircraft interior paint project of the company has been successfully concluded, and a series of supplier qualification certification and audit are under way.
The new ink products used in the integrated circuit industry have successfully completed product development and officially entered the market sales stage. In addition, the company has completed many kinds of waterborne color paste formula development and laboratory pilot scale-up suitable for automobile original factory, aftermarket and aviation field; completed the research and development of varnish formula for many kinds of automobile repair coatings, and the product matching performance results are excellent. Construction performance test is under way Series of resin technology R & D system construction and other new functional inks and other research projects, new product development are carried out in an orderly manner according to the plan, which is expected to inject new momentum into the future long-term development.
Profit forecast and investment rating. We estimate that the net profit of the company in 2023 to 2025 will be 80 million yuan, 139 million yuan and 208 million yuan respectively, and the EPS will be 0.72,1.25,1.86 yuan respectively. According to 2023 BPS 11.95 yuan and 7.0x PB (originally 9x PB in 2023), the reasonable target price is 83.65 yuan (- 23%), maintaining the "better than the market" rating.
Risk hint: the progress of the project construction is not as expected, and the product price fluctuates greatly.