Events:
The company released its 2023 semi-annual report on August 29, 2023.
Comments:
The operating income is basically flat, and the profitability has improved significantly.
In the first half of 2023, the company achieved operating income of 295 million yuan, an increase of 0.10% over the same period last year, and operating costs of 207 million yuan, down 11.94% from the same period last year. The net profit of returning to the mother was 27 million yuan, an increase of 69.89% over the same period last year. The net profit of non-return was 25 million yuan, an increase of 79.47% over the same period last year. Of this total, the revenue of bar code ribbon business was 265 million yuan, down 1.71% from the same period last year, and the gross profit margin was 10.75% higher than the same period last year; the revenue of fax ribbon business was 2 million yuan, down 6.02% from the same period last year, and the gross profit margin was 4.38% higher than the same period last year; the revenue from coded ribbon business was 2 million yuan, up 126.42% from the same period last year, and the gross profit margin increased by 13.61% The revenue of water transfer carbon belt business was 1 million yuan, an increase of 89.95% over the same period last year, and the gross profit margin increased by 1.15%.
Domestic thermal transfer carbon belt faucet, the product performance advantage is remarkable
The company is one of the first domestic enterprises to develop bar code printing thermal transfer ribbon, as a domestic industry leader was invited to participate in the formulation of national standards as a group leader. The company continues to expand product range and application fields, and has rich R & D experience and technical strength in the field of thermal transfer ribbon, including bar code ribbon, coding ribbon, fax ribbon, water transfer ribbon, TTO ribbon and other supporting products, forming a full range of thermal transfer ribbon products. The company's thermal transfer ribbon products not only have performance advantages in scratch resistance, high adaptability of different printing media, and ensure the readability of printed pictures and texts in a relatively harsh environment, the company also develops corresponding products according to the special needs of different industries, so that the company has a strong competitiveness in the downstream application industry.
The two major business strategies of product serialization and global localization have gradually landed, and the company has maintained a strong price advantage. The company continues to adhere to the two major business strategies of product serialization and global localization. Set up subsidiaries in the United States, Britain, Canada, India, Mexico, Brazil, France and other countries, and have a certain popularity and competitive advantage in the world. The cost advantage of the company is mainly reflected in technological innovation, sales model, production mode and management benefits. In terms of technological innovation, the company continues to adjust the formula of existing products and improve the process. In terms of sales model, the company gradually reduces the proportion of sales of slicers, compresses the link of sales circulation, and reduces the purchasing cost of customers. In terms of production mode, the company adopts self-cutting production mode for thermal transfer carbon strip products, and introduces high-speed slitting machine to reduce production cost by improving cutting efficiency and reducing cutting loss. In terms of management, the company has streamlined personnel and adopts lean management model, so the company has more subsidiaries in China and the world, but the management cost is still low. The cost advantage of the company not only ensures the product quality, but also has a more obvious price advantage in the international market.
Profit forecast and investment suggestion
The company is a leading enterprise in the field of thermal transfer carbon belt, which has high popularity and competitive advantage in the world, and has a broad space for sustainable growth in the future. With reference to the operating situation in the first half of the year, the operating income forecast for 2023-2025 is adjusted to 6.99,8.70 and 1.067 billion yuan, the net profit is adjusted to 0.60,0.87 and 115 million yuan, the EPS is 0.43,0.63,0.83 yuan per share, and the corresponding PE is 35.88,24.58,18.61 times. Maintain a "buy" rating taking into account the company's continued growth in the future.
Risk hint
Major raw material price fluctuation risk, market price fluctuation risk; core technology leakage and core technical personnel loss risk; international trade risk; exchange rate fluctuation risk; goodwill impairment risk.