Event

The company released its semi-annual report in 2023, with revenue of 771 million yuan in the first half of the year, an increase of 48.56% over the same period last year, and net profit of 90.535 million yuan (88.924 million yuan after deduction), an increase of 55.93 percent over the same period last year (62.91 percent after deduction), and the performance was higher than the upper limit of the performance forecast center by 90 million yuan.

Traditional business income continues to grow, providing the main driving force for the company's performance growth. Oil refining, natural gas chemical and coal chemical work are the company's traditional advantage projects. Among them, the development of the natural gas chemical industry has accelerated in recent years, coupled with the company's high market recognition of technical capabilities related to key equipment in the industry, so the corresponding orders have increased rapidly, with revenue of 247 million in the first half of the year. Compared with last year, the increase is 22.93%, and the revenue for the whole year is expected to reach 357 million. Benefiting from the increase in downstream crude oil processing, the demand for oil refining equipment increased, with revenue of 236 million in the first half of the year, an increase of 281.22% over the same period last year.

The installed capacity of nuclear power increases year by year, and the demand for new fuel transport containers increases the installed capacity and power generation of nuclear power increase year by year, leading to an increase in the demand for new fuel. The State Council approved the installation of 10 nuclear power plants in 2022, the largest number since 2008. on July 31, 2023, the State Council approved the installation of another 6 units. the number of units approved for the whole year is expected to reach 8, and the installed capacity of nuclear power in China is expected to reach 7000 million kilowatts during the 14th five-year Plan period. The batch production of ANT-12A new fuel transport containers has completely entered the normalization, and the market prospect of domestic replacement of new fuel transport containers is broad in the future. At present, the company has achieved cooperation with domestic leading enterprises, the company's technical and cost advantages, good customer relations, nuclear-related barriers to entry and other factors help the company consolidate its competitive advantage position.

Spent fuel reprocessing has a long slope and thick snow. It is optimistic that with the improvement of spent fuel processing capacity in the future market space of spent fuel transport containers, the demand for spent fuel transportation will increase.

The company participates in the national regulations and standards related to the design and manufacture of spent fuel transport containers, and its own spent fuel transport containers are also under development, which is expected to become a new momentum for the company's performance growth in the future.

Cut into the hydrogen energy track and open up a new profit growth point

The company raised money to cut into the hydrogen race track at the end of 2022 and in the first half of 2023. According to the 2022 hydrogen Energy Industry Research report, it is estimated that the annual demand for hydrogen in China will increase to 37.15 million tons in 2030, accounting for about 5% of the terminal energy consumption. By 2060, the annual demand for hydrogen in China will increase to about 130 million tons, accounting for about 20% of the terminal energy consumption. From 2020 to 2025, the output value of China's hydrogen energy industry will reach 1 trillion yuan, and from 2026 to 2035, the output value is expected to reach 5 trillion yuan. The company plans to be in the hydrogen production, hydrogen storage and hydrogenation racetrack. In the future, with the release of hydrogen energy value, the company will usher in a new performance growth point.

Investment suggestion

It is estimated that the company's net profit from 2023 to 2025 will be 202 million yuan, 265 million yuan and 322 million yuan respectively, corresponding to EPS of 0.74, 0.97 and 1.18 yuan, and PE of 17.63,13.49 and 11.1 times respectively, maintaining the "recommended" rating.

Risk Tips:

The impact of changes in customer relationship on performance; the risk caused by macroeconomic changes; the risk caused by changes in raw material prices