Event: The company released the 2023 semi-annual report. 23H1 achieved revenue of 846 million yuan, +4.3% year on year, net profit of 55 million yuan, +30.1% year on year, gross profit margin of 14.20%, YOY+2.5 pct; single Q2 company achieved revenue of 414 million, YOY -5.9%, -4.4% month-on-month, realized net profit of 26 million yuan, YOY -12.8%, -11.0% month-on-month, achieved a gross profit margin of 14.15%, +2.3pct, and -0.1 pct.
23Q2 Operating Financial Situation Analysis:
23Q2's net profit was -11.0% month-on-month, a slight decline, mainly because: (1) Q2 wind power flange shipments are expected to remain relatively flat or increase slightly due to upstream demand for wind power and the commencement of construction; (2) confirmed sales of wind power bearings are low.
23Q2 achieved a cost rate of 6.4% for the period, YOY+0.9 pct, and +0.2 pct over the previous month. Overall, it was relatively stable. Among them, the sales expense rate/management expense rate/financial expense rate/R&D expense ratio were 0.7%/3.4%/-2.7%/5.0%, respectively, +0.3 pct/+0.4 pct/-1.8 pct/+1.4 pct, respectively. The large decline in financial expense rates was mainly due to a combination of increased interest income and exchange rate fluctuations. The increase in R&D expenses was mainly due to a combination of increased interest income and exchange rate fluctuations. The increase in R&D expenses was mainly due to the increase in R&D expenses.
Investment advice:
(1) In the field of wind power: In the second half of the year, wind power flanges saw the pace of sea wind volume and price recovery, and wind power bearings looked at the introduction of new customers and structural optimization+increased capacity utilization to repair marginal profits.
(2) Entering the computing power leasing sector and contributing to a new growth pole: On July 28, the company and Shanghai Liuzhu jointly invested in the establishment of Shanghai Runliuzhu (the company holds 51% of the shares). It plans to cooperate to establish computing power centers in Shanghai, Fuzhou, Wuhu, Jining, etc., and build a Yangtze River Delta GPU computing center cluster. The company is expected to explore computing power leasing growth points with Shanghai's many years of experience in the field of computing power and its deep partnerships with upstream suppliers such as Nvidia and Xinhua. Currently, the company has obtained a business license and is expected to achieve revenue in Q3.
Considering the wind power business shipment situation in the first half of the year, we downgraded the company's performance. We expect net profit to be 285/5.22/655 million yuan respectively in 23-25 (the previous forecast was 36/5.6/680 million yuan in 23-25), an increase of 201%/83%/26% over the previous year. The current stock price corresponds to PE 41.8/22.8/18.2 times, maintaining the “buy” rating.
Risk warning: Demand in the wind power industry falls short of expectations; market competition intensifies; raw material prices fluctuate; computing power leasing development falls short of expectations, etc.