Incident: The company released its semi-annual report for 2023. 2023H1 achieved revenue of 3.04 billion yuan, an increase of 80.6% over the previous year; realized net profit of 160 million yuan, an increase of 29.2% over the previous year. Looking at the Q2 quarter, we achieved revenue of 1.88 billion yuan, up 140.0% year on year, and 62.1% month on month; realized net profit of 120 million yuan, up 58.4% year on year, and 175.9% month on month.
The scale of the high-end equipment business has expanded, and revenue has increased dramatically; the gross margin of the environmental protection industry has dropped significantly, dragging down the overall gross profit margin. 2023H1's material handling equipment and marine engineering equipment and supporting equipment business revenue increased by 132.5% and 138.7%, respectively, year-on-year, driving the company's total revenue to grow rapidly. In 2023H1, the company's comprehensive gross margin was 18.8%, a year-on-year decrease of 3.3 percentage points; Q2 was 19.0% in a single quarter, a year-on-year decrease of 2.9 percentage points, and a year-on-year increase of 0.6 percentage points. The decline in the company's overall gross margin was mainly due to a 7.1 percentage point year-on-year decline in gross margin in the environmental protection industry.
The scale effect was evident, and the cost ratio declined markedly during the period; affected by gross margin, net interest rate declined slightly. 2023H1, the company's expenses rate for the period was 9.9%, a year-on-year decrease of 4.9 percentage points; the Q2 quarter was 8.5%, a year-on-year decrease of 6.7 percentage points, and a year-on-year decrease of 3.8 percentage points. In 2023H1, the company's net interest rate was 6.6%, a year-on-year decrease of 1.4 percentage points; the Q2 quarter was 7.5%, a year-on-year decrease of 2.4 percentage points, and a year-on-year increase of 2.4 percentage points.
Continue to lay out the high-end equipment business and accelerate the internationalization process. 1) Runbang Heavy Machinery will invest in the construction of the “Tongzhou Bay Equipment Manufacturing Base Project” in the High-end Equipment Lingang Industrial Park in the Tongzhou Bay Demonstration Zone. The total investment of the project is 2.2 billion yuan, and new products including floating offshore wind power foundations, large megawatt offshore wind power stabilizing platforms, and LNG clean energy modules will be added to the company's existing high-end equipment products to further enhance the market share of the company's high-end equipment business. 2) The company plans to acquire the global bulk handling and handling business of the former Thyssenkrupp (Thyssenkrupp) and Sandvik (Sandvik), a subsidiary of FLSmidth Group, through the holding subsidiary German Koch, including all current orders for the business's global after-sales service. The transaction is conducive to further enhancing the company's market competitiveness and global after-sales service capabilities in the field of global bulk handling and handling systems and equipment, and to rapidly establishing the company's leading position in the global bulk handling and handling system equipment field.
Profit forecasts and investment recommendations. The company's net profit for 2023-2025 is estimated to be 3.9, 4.9 million yuan, and 640 million yuan respectively, and the compound growth rate of net profit to parent for the next three years will be 128.8%, maintaining the “holding” rating.
Risk warning: risk of macroeconomic fluctuations, offshore wind power installation or failure to meet expectations, risk of impairment of goodwill.