Event: in the first half of 2023, the company achieved operating income of 7.24 billion yuan, an increase of 1.2% over the same period last year, a net profit of 280 million yuan, an increase of 49.6%, and a non-return net profit of 220 million yuan, an increase of 34.6% over the same period last year.
In the second quarter of 2023, the company achieved revenue of 4.16 billion yuan, an increase of 3.5 percent over the same period last year, a net profit of 190 million yuan, an increase of 28.6 percent, and a non-return net profit of 170 million yuan, an increase of 25.4 percent over the same period last year.
The profitability has been improved, and the expense rate has been better controlled. In the first half of 2023, the company's gross profit margin on sales was 13.9%, an increase of 1ppp over the same period last year; the net profit margin on sales was 3.9%, an increase of 1.3pp over the same period last year. In terms of expenses, the company's sales expense rate / management expense rate (including R & D expenses) / financial expense rate is 3.9%, 5.9%, 0.5%, respectively, compared with the same period last year-0.2pp/+0.3pp/-0.01pp. The company continues to increase R & D investment, with a R & D expenditure rate of 3.8% in the first half of the year, an increase of 0.2pp over the same period last year, deepening the competitiveness of the company's products.
The shipment of polymer materials increased steadily and the profit increased significantly. In the first half of the year, the total volume of Wanma polymer increased by 14% compared with the same period last year, the highest monthly sales exceeded 46000 tons, the volume of international business increased by 22%, and the net interest rate increased by 48% over the same period last year. Relying on the scale effect and the gradual improvement of the product structure, the gross profit margin of the polymer material plate in the first half of the year was 15.7%, an increase of 2.5pp over the same period last year. In addition, the company's Huzhou base has been fully put into production, and the capacity utilization rate has increased compared with the same period last year; the smooth commissioning of the second phase of ultra-high pressure is expected to benefit from an increase in the proportion of high-margin products, driving the overall profit to continue to rise.
Charging pile stable operation, product research and development continues to make breakthroughs. The company's charging pile operation business has developed for many years, and the competitive strength is strong. The charging capacity of the platform increased by 17% in the first half of the year compared with the same period last year. The company has also achieved growth in sales performance. In the first half of the year, the amount of contracts signed increased by 51% compared with the same period last year, and the amount issued increased by 108% compared with the same period last year. In terms of product research and development, 360kW 1 dragged 12 group charging products through small batch verification, 480kW 1 dragged 12 group charging products into the testing stage, DC gun line to achieve independent production, continue to deepen the product "moat".
Raise funds to further expand production capacity and support sustainable development. The company announced a stock issuance plan to specific targets in May 2013. the fund-raising projects include "Qingdao Wanma High-end equipment Industry Project (Phase I)", "Annual production capacity of 40,000 tons of High Voltage Cable Ultra-clean XLPE Insulation Project", "Annual production capacity of 16000 km Wire and Cable Project", "Shanghai New Materials Research Institute Construction Project", etc., raising a total of no more than 1.7 billion yuan, tamping the basic set of cables, while expanding the production capacity of high-voltage materials. Drive long-term development.
Profit forecast and investment advice. The company's revenue from 2023 to 2025 is expected to be 16.78 billion yuan, 18.94 billion yuan and 22.37 billion yuan respectively, and the year-on-year growth rate of net profit for the next three years is 48.7% 29.2% and 40.5% respectively.
The company has an absolute lead in the high-pressure field, and with the release of production capacity, volume profits are expected to gradually increase and maintain the "hold" rating.
Risk tips: the risk that the downstream demand of the cable is lower than expected; the risk that the schedule of new projects is not as expected; the risk of macroeconomic fluctuations; and the risk that exchange rate fluctuations affect product export earnings.