The company disclosed its 2023 semi-annual report. Achieved revenue of 1,660 million yuan, -5.08% year on year, realized net profit of 97 million yuan, or -40.90% year on year, net profit after deducting non-return net profit of 89 million yuan, or -43.22% year on year. Among them, revenue for the second quarter was 995 million yuan, -3.70% year-on-year, net profit of 57 million yuan, or -32.55% year-on-year, after deducting 50 million yuan after deducting 50 million yuan, or 39.19% year-on-year.
The company achieved a comprehensive gross profit margin of 36.13% in the first half of 2023, +0.05 pct over the same period last year. On a quarterly basis, the company achieved gross profit margins of 36.57% and 35.84% respectively in Q1 and Q2, respectively, with changes of -2.66 and +1.93 percentage points over the same period last year;
The company's expenses in 2022 accounted for 26.21%, +2.81 percentage points over the same period last year. The sales expense ratio is 11.60%, +2.15 percentage points year on year; the management expense rate is 8.36%, +0.90 percentage points year on year; the financial expense ratio is 1.36%, -0.14 percentage points year on year; and the R&D expense rate is 4.89%, -0.09 percentage points year on year.
The company's net operating cash flow for the first half of 2023 was -163 million yuan, compared to -07 billion yuan for the same period last year; net operating cash flow per share was -0.39 yuan, year-on-year -0.02 yuan/share. On a quarterly basis, the company's net operating cash flow per share in Q1 and Q2 was 0.29 yuan and -0.68 yuan, respectively, with changes of +0.39 and -0.40 yuan/share from the same period last year. From the perspective of income and cash out ratio, the company's revenue and cash out ratios for the first half of 2023 were 98.93% and 141.11%, respectively, with changes of -9.65 and -20.95 percentage points over the same period of the previous year. In terms of cash flow, net cash flow from operating activities was $163 million, or -4.63%; net cash flow from investing activities was $230 million, or -404.28%; net cash flow from financing activities was $278 million, +528.50% year on year.
Profit forecast: We adjusted our profit forecast. We expect net profit to be 282, 339, and 407 million yuan respectively for 2023-2025, EPS of 0.67, 0.81, and 0.97 yuan respectively, and the corresponding dynamic PE for the stock price on August 26 will be 18.1, 15.1, and 12.6X respectively, maintaining the “increase in holdings” rating.
Risk warning: fluctuations in raw material prices; macroeconomic fluctuations; increased market competition; demand for glass fiber falls short of expectations; production progress falls short of expectations; risk of exchange rate fluctuations; risk of glass fiber price fluctuations