Bo Liwei issued an announcement: the company achieved an income of 1.279 billion yuan / yoy+3.87%, in the first half of 2023 and a net profit of 0.35 billion yuan / yoy-55.69%.
Main points of investment
The profitability of the second quarter was significantly repaired, turning losses into profits.
The company's 2023Q2 realized income of 786 million yuan / yoy+15%/QoQ+60%, to achieve a net profit of 0.4 billion yuan / yoy-24%, to turn losses into profits, and deducted non-return net profits of 0.55 million yuan / yoy+3.5%, to turn losses into profits. The company's 2023Q2 gross profit margin was repaired to 17.4%, which was about 2.9pct higher than that of 2023Q1, and the net profit rate was repaired to 5.1%. Compared with 2023Q1, the financial expense rate of 2023Q2 was increased by about 6.2% and decreased by about 2.9pct compared with the previous month. The net cash flow of the company's 2023Q2 operating activities is + 113 million yuan, and the cash flow performance is excellent.
The energy storage business is growing rapidly and the performance is very strong.
The company's 2023H1 energy storage business income increased to 34% of the 440 million yuan / yoy+254%, a strong performance; the company's 2023H1 light vehicle business income of 472 million yuan / yoy-35%, accounted for about 37%, mainly affected by overseas inflation, geopolitics, product destocking and other factors. The 2023H1 income of consumer battery is 294 million yuan / yoy+17%, accounting for 23%. Lithium battery 2023H1 earns 0.27 billion yuan / yoy-61%. Overall, the company's energy storage business maintained strong growth, the company's consumer batteries are mainly suitable for notebook computers, mobile power supplies, and demand has recovered.
Based on the company's long-term deep cultivation of Europe and the United States and other overseas markets, continue to expand energy storage business, the company's energy storage business is expected to continue to grow at a high speed. In addition, the company is actively expanding the market of two-wheeled vehicles in Southeast Asia. In 2022, Southeast Asia accounts for 21% of global motorcycle sales, and the electric penetration rate is low. With the landing of relevant subsidies and policy concessions, the two-wheeled business is expected to return to growth.
Profit forecast
It is estimated that in 2025, the net return profit of 2023Universe 2024Universe will be 1.51002.5 / 380 million yuan respectively, and the eps will be 1.46Universe 2.49Compact 3.79yuan, and the corresponding PE will be as much as 21-12-8 respectively. Based on the company's high-quality track, light vehicle battery has a prominent position in the European market, and actively expand the Southeast Asian market, energy storage business focuses on differentiated competition, we are optimistic about the company's medium-and long-term development opportunities and maintain the "buy" rating.
Risk hint
Risk of policy fluctuation; lower-than-expected downstream demand; lower-than-expected product prices; risk of deterioration of the competition pattern; capacity expansion and digestion is not as expected.