Incident: The company released its 2023 semi-annual report. In the first half of the year, the company achieved revenue of 3.351 billion yuan, a year-on-year increase of 6.
73%; net profit of 222 million yuan, up 12.71% year on year (54.24% after excluding the impact of foreign exchange); net profit after deducting 191 million yuan, up 1.22% year on year (40.55% after excluding the impact of foreign exchange). In the second quarter of 2023, revenue was 1,661 million yuan, up 12.32% year on year; net profit for Gimu was 118 million yuan, down 5.81% year on year; net profit after deducting 121 million yuan from non-net profit, down 8.91% year on year.
The company's gross margin increased in the first half of the year and operations were steady. Net interest rate was dragged down by exchange earnings. The company's gross profit margin for the first half of the year was 22.34%, +3.76 pct; net interest rate 6.62%, +0.48 pct year on year; net interest rate of 5.71%, excluding non-net interest rate of 5.71%, year-on-year -0.31 pct. In terms of expenses, the company's sales/management/R&D/financial expenses ratio for the first half of the year was 4.76%/5.43%/3.70%/0.39%, respectively, with year-on-year changes of +0.83/+1.06/-0.06/+1.55 pct. Financial expenses have increased a lot, mainly due to the decrease in exchange earnings to 2.908 million yuan in the first half of this year (54.968 million yuan in the same period last year).
The company's gross profit margin for the second quarter was 24.06%, +4.39 pct year on year and +3.41 pct month on month, fully benefiting from declining raw material costs and improved cost control and management by subsidiaries. In terms of expenses, the company's sales/management/R&D/financial expense ratio for the second quarter was 4.65%/5.28%/3.88%/-0.16%, respectively. The year-on-year change was +0.36/+0.90/-0.40/+4.28pct, and the year-on-year change was -0.20/-0.31/0.36/ -1.38%, respectively. Net sales interest rate was 7.17%, -1.23 pct year on year, +1.10 pct month on month.
Smart Logistics System Business Segment: Operational efficiency improved, subsidiary profit released 23H1. The smart logistics system achieved revenue of 1,631 billion yuan, an increase of 18.13% over the previous year, and a gross margin of 22.45%, +3.27 pct over the previous year. The subsidiary Zhongding Integrated achieved net profit of 48.1469 million yuan in the first half of the year, an increase of 50.02% over the previous year; the subsidiary French Savoye achieved net profit of 975,600 yuan in the first half of the year, changing net profit from negative to positive.
The company is a leading provider of internal logistics systems in China. The logistics sector has sufficient orders and continues to release profitability.
In the first half of 2023, the company achieved effective control and improvement of domestic and foreign subsidiaries through incentive policies, team optimization, talent introduction, capacity expansion, optimization and collaboration. As the efficiency of Zhongding's integrated optimization management team increases and France's Savoye's operating revenue increases, the sector's profitability is expected to continue to increase.
Intelligent manufacturing equipment business: The vehicle strategy is progressing steadily, and the revenue structure has been clearly optimized. 23H1 warehousing and logistics vehicles and equipment achieved revenue of 1,724 billion yuan, -2.33% year-on-year, and gross margin of 22.18%, +4.17 pct. In the first half of 2023, the company's vehicle sales continued to grow rapidly, and the revenue structure was clearly optimized.
The company's “big car strategy” grasps the trend of lithium electric forklifts going overseas, and there is huge room for future growth. The total sales volume of industrial vehicles in the first half of this year was 586,000 units, of which electric forklifts accounted for 64.45%; 190,000 units were exported, an increase of 8.13% over the previous year. The company grasps the trend of lithium electric forklifts going overseas and plans to build a production capacity of 30,000 large trucks. It is expected to achieve annual sales revenue of 3 billion yuan within 2 years. The company competes differently and uses the channels and ODM/OEM resources accumulated by cars to form unique export competitiveness. The company's share of the large car market in 2022 is still less than 4%. With the gradual release of vehicle production capacity, there is huge room for future growth.
Profit forecast: The company is operating steadily, and the two major business segments are progressing steadily. The company's revenue for 2023-2025 is expected to be 7.9 billion yuan, 10 billion yuan, and 12.4 billion yuan (maintenance), respectively; +18%, +27%, and +24%, respectively; net profit of 508 million yuan, 676 million yuan, 886 million yuan (maintenance), respectively, +26%, +33%, and +31%, respectively; EPS is 1.97 yuan, 2.63 yuan, and 3.44 yuan respectively, maintaining the “buy” rating.
Risk warning: the risk of demand reduction due to the downturn in the overseas economy; the risk of exchange rate fluctuations; management risks brought about by the integration and scale expansion of the company's resources; the risk of cost increases due to fluctuations in raw material prices; the risk of loss of core technology and management personnel; there may be a risk that the public information used in the research report may be delayed or not updated in a timely manner.