公司主要产品包括塑料卫浴泵、通用泵、不锈钢泵三类，其中塑料卫浴泵为公司核心优势产品，主要应用于浴缸、泳池等场景，目前公司已成为国内乃至全球塑料卫浴泵龙头。上半年公司业绩下滑主要由于出口业务出现较大幅度下滑，根据公司公告，上半年公司国外销售收入3.12 亿元，同比下降43.73%，主要由于下游客户于2021 年及2022年上半年储备较大库存，同比基数较高，2023 年上半年客户仍处于消耗库存阶段。内销相对平稳，上半年实现国内销售收入2.96 亿元，同比下降4.06%。分产品看，上半年公司不锈钢泵营收同比增长8.84%；塑料卫浴泵、通用泵营收分别同比下降47.42%和8.23%。降本增效及产品结构优化背景下公司毛利率持续提升，一方面公司持续产品标准化工作降低制造成本，另一方面，随着卫生安全等国民意识的提高，不锈钢材质在民用通用泵领域得到了更为广泛的应用，公司通用泵销售收入不断下降，不锈钢泵占比提升，据公司公告，上半年公司不锈钢泵和通用泵毛利率分别为38.74%和30.83%，结构持续优化带动毛利率稳步提升，上半年公司毛利率及净利率分别达到38.16%和29.62%，分别同比提升3.43pct 和2.38pct。Incidents:
The company released its semi-annual report for 2023. In the first half of the year, the company achieved operating income of 608 million yuan, a year-on-year decrease of 29.56%; net profit not attributable to parents was 175 million yuan, an increase of 23.18% over the previous year. Among them, we achieved operating income of 338 million yuan in the second quarter, a year-on-year decline of 17.08%, net profit not attributable to parents of 101 million yuan, a year-on-year decline of 13.73%, and a positive month-on-month improvement trend.
Poor overseas demand has put pressure on short-term performance, and continued cost reduction and efficiency have increased to achieve an increase in gross margin:
The company's main products include plastic sanitary pumps, general pumps, and stainless steel pumps. Among them, plastic sanitary pumps are the company's core advantage products and are mainly used in bathtubs, pools, etc. Currently, the company has become the leading plastic bathroom pump in China and the world. The decline in the company's performance in the first half of the year was mainly due to a sharp decline in export business. According to the company announcement, the company's foreign sales revenue in the first half of the year was 312 million yuan, a year-on-year decrease of 43.73%. It was mainly due to downstream customers reserving large inventories in 2021 and the first half of 2022. The year-on-year base was high, and customers were still in the inventory consumption stage in the first half of 2023. Domestic sales were relatively stable, with domestic sales revenue of 296 million yuan in the first half of the year, a year-on-year decrease of 4.06%. By product, the company's stainless steel pump revenue increased 8.84% year on year in the first half of the year; the revenue of plastic sanitary pump and general purpose pump decreased by 47.42% and 8.23% year on year, respectively. In the context of cost reduction and efficiency and product structure optimization, the company's gross margin continued to rise. On the one hand, the company continued to work on product standardization to reduce manufacturing costs. On the other hand, with the increase in public awareness such as health and safety, stainless steel materials were more widely used in the field of civilian general pumps. The company's general pump sales revenue continued to decline, and the proportion of stainless steel pumps increased. In the first half of the year, the gross margin of the company's stainless steel pumps and general pumps increased by 38.74% and 30.83%, respectively. Continued structural optimization led to a steady increase in gross margin. In the first half of the year, the company's gross margin and net margin reached 38.16%, respectively. 29.62%, a year-on-year increase of 3.43 pct and 2.38 pct, respectively.
Excellent financial performance, high dividends highlight investment value:
Despite pressure on the company's short-term performance, various financial indicators still performed well. As of the first half of 2023, the company's balance ratio was only 6.13%, no interest-bearing liabilities, and net assets of 2,033 billion yuan, of which monetary capital and transactional financial assets reached 1,359 billion yuan. Since listing, the company has continued to maintain high dividends. In 2020-2022, the company's cash dividends were 330 million yuan, 358 million yuan, and 358 million yuan. The dividend ratio was as high as 92.1%, 74.01%, and 84.77%. Calculating the closing price on August 29, the dividend rate reached 6.28%, demonstrating the company's investment value.
The leading position in the industry is stable, and the company's performance is expected to recover after inventory consumption:
According to the company's announcement, stocks of some types of pumps in overseas markets have now gradually been exhausted, orders have recovered, and demand in overseas markets is expected to recover in the second half of the year. Looking at the long term, the company has a stable leading position in the domestic plastic sanitary pump field. At the same time, the stainless steel pump series products are also in the first tier of the domestic industry. After experiencing an increase in raw material prices in the past two years, some rivals that compete at low prices are expected to withdraw from the market, and the company's market share as a leader in the industry is expected to increase further. At the same time, according to the company's annual report, the company plans that the annual production capacity of civilian centrifugal pumps will reach 8 million units in the next five years (not promised, may be adjusted according to changes in market demand). There is great room for improvement compared to the output of 2.7543 million units in 2022, further safeguarding the company's long-term growth potential.
Investment advice:
We expect the company's revenue from 2023 to 2025 to be 1,491 billion yuan, 1,699 billion yuan, and 1,979 billion yuan respectively, growth rates of 0.5%, 14.0% and 16.5% respectively, net profit of 411 million yuan, 461 million yuan, and 538 million yuan respectively. The growth rates are -2.5%, 12.0%, and 16.7% respectively. It maintains the investment rating of buy-A, and gives 18 times PE for 2023, with a target price of 20.7 yuan for 6 months.
Risk warning: Downstream demand falls short of expectations, market competition intensifies, and raw material prices rise.