Main points of investment
In the first half of 2023, the company achieved operating income of 703 million yuan, + 13.08% compared with the same period last year; net profit of 32 million yuan, + 225.38%; and non-return net profit of 29 million yuan, + 247.35%. 23Q2 achieved operating income of 414 million yuan in a single quarter, + 22.79% year-on-year; net profit of 24 million yuan, + 617.01%; and non-return net profit of 21 million yuan, + 662.91%.
The company continues to develop electronics, new energy vehicles and other new areas, 23H1 new track revenue increased company 23H1 achieved operating income of 703 million yuan, + 13.08% year-on-year, in which the electronic and new energy vehicle sector performance is particularly outstanding, the contribution is significant, 23H1 company electronics and new energy vehicle sector sales revenue increased by more than 50% and 70% respectively, the two sectors accounted for 17.57%. At present, the company has completed the construction of the production line of tin-based solder in the electronic field, and has carried out small-batch supply to Gree Electric Appliances, Dongfang Risheng and Yubang New Materials in the field of photovoltaic, and has passed the certification of Haikangwei in the field of security and entered the stage of small-batch verification. Looking to the future, with the tin-based solder after a certain cycle of batch verification by customers may form large-scale sales, and with the growth of downstream customer orders in the field of new energy vehicles, the company's revenue is expected to continue to grow rapidly in the future.
The rebound in silver prices of bulk raw materials and the company's promotion of cost reduction and efficiency increase have significantly promoted gross profit margin in 2023, the company has actively carried out process innovation and equipment transformation, promoted lean production, and achieved cost reduction and efficiency improvement for mature products. At the same time, as the silver price of bulk raw materials stabilized and rebounded in the first half of the year, the company's profit level was significantly repaired. 23H1 achieved a gross profit margin of 13.73%, a year-on-year gross profit margin of 15.18% and a year-on-year + 4.65pct. As the company continues to promote production line automation and carry out lean production, and is committed to developing new products with high gross margins, we are optimistic that the company's profitability will continue to improve in the future.
Profit forecast and valuation
It is estimated that the overall operating income from 2023 to 2025 will be RMB 1.557 billion, respectively, with a growth rate of 27.55%, 30.62%, 28.25%, 0.50, 0.90, and 142 million, respectively, and a growth rate of 476.87%, 79.24% and 57.09%, respectively, corresponding to an EPS of 0.57, 0.02 and 1.60 yuan, respectively. Maintain a "buy" rating.
Risk hint
Downstream demand for new businesses such as electronics and new energy vehicles is lower than expected; the risk of raw material price fluctuations.