Event: the company released its semi-annual report for 2023, with revenue of 510 million yuan in the first half of 2023, an increase of 19.7% over the same period last year, and a net profit of 53 million yuan, an increase of 69.8% over the same period last year. In the single quarter, Q2 realized operating income of 360 million yuan, an increase of 15.4% over the same period last year, an increase of 133.2% over the previous year, and a net profit of 54 million yuan, an increase of 54.4% over the same period last year.

The level of project control has been improved, the revenue has increased steadily, the cost has been reduced and the gross profit margin has been significantly improved. 2023H1, benefiting from the continuous optimization of the domestic market environment and the continuous improvement of project management and control level, the company successfully delivered new energy, communications equipment, medicine, aerospace and other industry projects, and maintained steady revenue growth. 2023H1, the company's comprehensive gross profit margin was 29.9%, an increase of 4.8% over the same period last year; Q2 was 32.6% in a single quarter, up 7.1% from a year earlier and 9.2% from a month earlier. The company's fund-raising project capacity advantage is beginning to show, cost control and operational efficiency has been improved, and gross profit margin has increased steadily.

The scale effect continues to appear, during which the expense rate decreases and the net interest rate increases significantly. 2023H1, the company's period expense rate was 18.0%, down 1.9% from the same period last year; Q2 was 13.4% in the single quarter, an increase of 0.5% from the same period last year, and a decrease of 15.2% from the previous quarter. 2023H1, the company's net profit rate was 10.3%, an increase of 3.0% over the same period last year; Q2 was 14.9% in the single quarter, an increase of 3.8% over the same period last year, and an increase of 15.4% from the previous month. The increase in net profit margin mainly benefited from the improvement in gross margin.

Actively develop warehousing and logistics robots and deepen the expansion of overseas markets. The company's warehousing and logistics robot products have technological leadership, and 2023H1 continues to develop multi-category AGV new products, which are currently mostly used in the pre-production process of lithium battery production line in the new energy industry. This series of products adopt a variety of independent research and development of AGV navigation and scheduling technology, as well as visual secondary precision positioning technology, which can achieve stable operation of large-scale clusters. The company has applied for the establishment of wholly-owned subsidiaries in Germany and the United States-Lanjian Germany and Lanjian USA respectively, taking the two intelligent warehousing systems that have been put into operation in the United States and Germany as demonstration projects to actively explore the international market.

Profit forecast and investment advice. It is estimated that the company's net profit from 2023 to 2025 will be 1.4,1.8 and 230 million yuan respectively, with a compound growth rate of 36.9% over the next three years, maintaining a "buy" rating.

Risk tips: the risk of decline in newly signed orders, the risk of fluctuations in raw material prices, and the increased risk of industry competition.