Events:
The company released its semi-annual report on August 29, 2023, and its operating income in the first half of the year was 708 million yuan, an increase of 13.11% over the same period last year. The net profit was 7 million yuan, an increase of 107.11% over the same period last year, and the basic earnings per share was 0.01yuan.
Military electronics: sufficient orders on hand, production capacity entering the climbing period
During the reporting period, the company seized the opportunities of the military electronics industry, deepened cooperation with core users, and closely followed the core supporting needs of key users. The production capacity of Chengdu High-tech West Zone increased, and the capacity utilization rate exceeded 60% by the end of the reporting period. With a comprehensive report on the order of 511 million yuan at the end of the period and the market demand of potential customers, it is expected that saturated production will continue to be achieved this year.
Boat business: there are many positive factors in the industry, and revenue increases compared with the same period last year.
During the reporting period, the company took customer service as the starting point, strengthened the construction of sales channels and platforms, improved the enthusiasm of the sales team, and successively realized the sales of 166FT catamaran yachts, 72FT yachts and other projects. by the end of the reporting period, the boat business had ordered 456 million yuan, and with the tourism industry driven by various favorable factors such as national policies to promote consumption, yacht business revenue increased by 46.05% compared with the same period last year.
Profits can be turned from losses to profits, and the fixed increase will continue to push forward.
During the reporting period, revenue from the military electronics and shipbuilding sectors increased by 9.76% and 30.51% respectively, and the company's overall revenue increased by 13.11%. Under the influence of factors such as good cost control during the period, the company's profits turned from losses to profits. By the end of August, the issue of the company's shares to specific targets had been accepted by the listing examination Center of the Shenzhen Stock Exchange, and the "reply report on Yaguang Technology Group Co., Ltd. 's application for examination and inquiry letter of issuing shares to specific targets" was disclosed. If this issue is successfully completed, the company's capital strength and operational anti-risk ability will be further enhanced.
Earnings forecast, valuation and rating
Taking into account the uncertainty of demand for some orders, we estimate that the company's operating income from 2023 to 2025 will be 2.715 billion yuan (the original value is 1.969), the net profit will be 0.07), and the EPS will be 0.16 and 0.27 yuan per share. Considering that the technical level of the company continues to improve and the production capacity increases smoothly, refer to the comparable company, give the company 45 times PE in 2024, the target market capitalization is 7.311 billion yuan, and the corresponding stock price is 7.26 yuan, maintaining the "overweight" rating.
Risk Tips:
Market demand is less than expected risk; technology research and development is less than expected risk; industry competition aggravates risk.