Event: Yanggu Huatai released its semi-annual report for 2023, 2023H1 achieved revenue of 1.664 billion yuan, down 8.67% from the same period last year; realized net profit of 209 million yuan, down 27.67% from the same period last year; and realized net profit of 201 million yuan, down 29.74% from the same period last year. In a single quarter, 2023Q2 achieved revenue of 853 million yuan, down 11.71% from the same period last year, up 5.28% from the previous year; realized net profit of 121 million yuan from the same period last year, down 31.26% from the same period last year, up 36.60% from the previous quarter; and realized net profit of 116 million yuan from the same period last year, down 33.07% from the same period last year and up 35.05% from the previous year.
Maintain the investment rating of "overweight". 2023H1, according to the statistics of the Rubber Additives Professional Committee of China Rubber Industry Association, the cumulative total output value, income and exports of rubber auxiliaries industry have decreased compared with the same period last year, resulting in the company's first-half performance under pressure from the same period last year. From a quarterly point of view, 2023Q1, overseas and domestic demand shrank synchronously, and the rubber auxiliaries market was relatively depressed, but since entering the second quarter, the export performance of domestic tires is better, and the demand of upstream enterprises for tire rubber auxiliaries has also rebounded obviously.At present, the overall rubber additive industry has basically come out of the doldrum. accordingly, the company's second-quarter operating income and homing net profit have improved significantly compared with the first quarter.
Yanggu Huatai's main business is anti-coke agents, accelerators, insoluble sulfur and other rubber auxiliaries products, has a national rubber auxiliaries engineering and technical research center, has gradually grown into a comprehensive rubber auxiliaries supplier.
The company's leading product anti-coke agent occupies a large market share in the world and has strong competitiveness; in terms of insoluble sulfur, the company is the first in China and the third in the world to master the industrialization technology of continuous insoluble sulfur, and its products are fully recognized by the market. new production capacity is in the process of accelerating production. At the same time, the company's capacity expansion projects are rich, and silane coupling agents, silica dispersants, high-grade protective waxes and peroxide cross-linking agents have been actively distributed among the auxiliaries used in new energy vehicle tires. With the commissioning and gradual expansion of the company's new production capacity, the company has sufficient driving force for future development. We adjust the company's eps to 1.04 and 1.22 yuan respectively from 2023 to 2024, and introduce the eps forecast of 1.35 yuan in 2025 to maintain the investment rating of "increasing holdings".
Risk hint: market competition aggravates the risk, product development and production do not meet the expected risk, customer development is less than expected risk.