Key points of investment
In the first half of 2023, the company achieved revenue of 8.389 billion yuan, +28.69% over the same period last year. On a quarterly basis, the company achieved revenue of 4,071 billion yuan and 4.319 billion yuan in Q1 and Q2, respectively, with year-on-year changes of +46.13% and +15.67%, respectively. By product, the company's glass products, electronic glass and display products, solar energy and other products achieved revenue of 63.35, 7.20 billion yuan, and 1,585 billion yuan respectively, compared with +43.05%, -11.05%, and +10.59%, respectively.
In the first half of 2023, the company achieved a comprehensive gross profit margin of 22.58%, compared with the same period last year - 6.29 pct. On a quarterly basis, the company's gross margins in Q1 and Q2 were 22.24% and 22.90% respectively, with year-on-year changes of -6.11 pct and -6.35 pct, respectively. By product, the company's gross margins of glass products, solar energy and other products were 20.04% and 32.28% respectively, with year-on-year changes of -10.85 pct and -1.42 pct, respectively.
1) In the first half of 2023, the company achieved a net sales interest rate of 10.51%, compared to the same period last year - 4.96 pct; the cost rate for the period was 10.80%, compared to -1.18 pct for the same period. The sales expense ratio was 1.75%, down 0.30 pct year on year, sales expenses +9.67%; management expense ratio was 4.06%, down 0.83 pct year on year, management expenses +6.78%; R&D expense ratio was 4.13%, up 0.05 pct year on year, R&D expenses +30.23%, mainly due to increased R&D investment; financial expense ratio was 0.87%, down 0.10 pct year on year, and financial expenses +15.87%: no asset impairment loss in the first half of 2023, loss of credit impairment of 0.08 billion yuan.
The company's net operating cash flow for the first half of 2023 was 518 million yuan, compared to the same period last year - 384 million yuan; net operating cash flow per share was 0.17 yuan, compared to the same period last year - 0.13 yuan/share.
Profit forecast and rating: We adjusted our profit forecast. We expect the company's net profit to be 2,008 billion yuan, 2,411 billion yuan, and 2,893 billion yuan respectively for 2023-2025. PE corresponding to the closing price on August 28 was 8.8, 7.3, and 6.1 x respectively, maintaining the “increase in holdings” rating.
Risk warning: rising raw material prices, macroeconomic downturn, increased industry competition, and product price fluctuations.