Performance increased steadily in the first half of the year, with a slight increase in profitability
CIMC Enrico announced the results for the first half of 2023. In the first half of the year, it achieved operating income of RMB 10.76 billion, an increase of 20.2% over the previous year; realized net profit of RMB 570 million, an increase of 29.4% over the previous year; and earnings per share of RMB 0.28 billion. In the first half of '23, the company's gross margin increased 0.6 percentage points year on year to 16.5%. Among them, the gross margin of the energy/chemical/liquid food segment increased 0.5/2.0/1.9 percentage points year on year; net profit margin increased 0.2 percentage points year on year to 5.3%, and profitability increased slightly.
Order growth is impressive, driving future growth
In the first half of 2023, the company's clean energy sector achieved revenue of 6.29 billion yuan, a sharp increase of 34.4% over the previous year, mainly due to the gradual recovery of the Chinese natural gas market and the relevant favorable policies of the government; the chemical environment sector achieved revenue of 2.45 billion yuan, down 3.9% year on year, mainly due to the balance in the global tank process configuration, demand for new boxes gradually returned to normal; the liquid food sector achieved revenue of 20.01 billion yuan, an increase of 17.3% over the previous year, mainly due to the return of most operations to normal.
According to the announcement, the company signed new orders of RMB 12.67 billion in the first half of '23, an increase of 17.9% over the previous year; of these, new orders for clean energy, chemical environment and liquid food were RMB 7.91/23.1/2.45 billion respectively.
As of June 30, 23, the company's on-hand orders increased 18.8% year-on-year to RMB 20.6 billion; of these, orders for clean energy, chemical environments, and liquid food reached 134.4/21.0/5.07 billion yuan respectively.
The hydrogen energy business maintained strong growth and achieved breakthroughs in various fields
In the first half of '23, the company's hydrogen energy business revenue increased sharply by 59.1% year on year to 270 million yuan; orders in the hydrogen energy business increased sharply by 116.9% year on year to 370 million yuan. In the first half of '23, many parts of the country introduced incentives related to hydrogen energy, and the construction of green hydrogen production capacity further exploded. In terms of upstream hydrogen production, the company's first 1,200m at the beginning of the year? /h The alkaline electrolyzer was successfully launched; in terms of midstream storage and transportation, the 30MPa wound gas cylinder bundle container and the 99MPa station hydrogen storage bottle set have been successfully sold in bulk; in terms of downstream terminal applications, the company has made breakthroughs in vehicle bottles, type III bottles, and hydrogen fueling stations.
Maintain a “buy” rating
The company's performance was in line with expectations, and we maintained the company's 23-25 EPS forecast of 0.63/0.74/0.86 yuan. The company's LNG and hydrogen energy business is in line with the direction of clean energy development, benefits from policy support, and maintains a “buy” rating.
Risk warning: risk of hydrogen energy policy change, risk of oil and gas price fluctuation, risk of poor development of new business and overseas business