The company achieved a net profit of 125 million yuan in the first half of the year, down 7.93% from the same period last year. The company released a 23-year mid-year report. In the first half of the year, the company realized income / net profit of 1.815 million yuan, 7.93% of the same period last year, and 115 million yuan of non-return net profit in the first half of the year.-7.36% compared with the same period last year. Among them, Q2 achieved income / return net profit of 1.035 million yuan in a single quarter, compared with-7.85% and 4.12% of the same period last year, deducting 73 million yuan of non-return net profit, and-0.68% of the same period last year.

The profit of admixture increased compared with the same period last year, and entered the overseas market.

The company's 23H1 realized 1.094 billion yuan in admixture business revenue, down 7.12% from the same period last year. We expect it to be mainly affected by the downward demand on the real estate side. The average price of ethylene oxide in 23H1 fell 20.5% from the same period last year. Thanks to the decline in the price of raw materials, the gross profit of the company's admixture business increased by 24.7% year-on-year, achieving a net profit of 96 million yuan, an increase of 36.16%. The company continues to increase its production capacity, with a total domestic synthetic capacity of 1.389 million tons as of 23H1, ranking first in Fujian, Guizhou, Chongqing, Hainan, Shaanxi and Shanghai, among which the market share in Fujian and Hainan has exceeded 30 per cent. The company is also actively expanding overseas markets, adding Laos admixture industrial base in the first half of the year, radiating Southeast Asian markets such as Vietnam and Thailand, and setting up synthetic production lines overseas for the first time. We believe that with the gradual release of the company's new production capacity, the market share is expected to further increase.

Revenue from technical services has declined, and there is still a large space for "cross-regional and cross-disciplinary" growth. 23H1 realized technical services business income of 192 million yuan, down 18.21% from the same period last year, accounting for 10.58% of the total revenue. The company's traffic engineering testing business has developed smoothly in the national market, and the testing qualification of the electronic and electrical testing center has continued to expand, and the testing category has been expanded from the field of communication electronics and automotive electronics. it has been extended to industrial and new energy automotive electronics, medical electronics, military electronics, optical storage integrated products and other fields.

The gross profit margin of 23H1's technical services business fell by 34.44% year-on-year, which was higher than that of additives. Recently, Shanghai Jianyan testing Co., Ltd., a subsidiary of the company, successfully won the bid for the preliminary road condition investigation project of the large and medium repair project of Shuyuan town management road facilities in 2023, with a total of 12 winning projects, including 10 rural roads and 2 urban roads. Detection business "cross-region, cross-domain"

There is still plenty of room for growth.

New energy and digital architecture are expected to empower the company's growth, maintain the "buy" rating company is the first overall listed construction research institution in China, admixture + testing business two-wheel drive, the layout in new energy, digital architecture and other fields is expected to empower the company's future growth. Taking into account the decline in performance in the first half of the year, the 23-25 net return profit forecast for 23-25 is reduced to 2.4pm 300.37 billion yuan (previous value:

3.4According to the comparable company, the company was given a 23-year 20-fold target of PE, with a target price of 6.60 yuan, maintaining a "buy" rating.

Risk tips: capacity investment is not as expected, demand decline, raw material prices rise sharply, new energy and other business development progress is lower than expected and so on.