Event: the company released the 2023 interim report that 2023H1 realized revenue of 600 million yuan (+ 28.9%) and net profit of 50.01 million yuan (- 11.7%), of which Q2 realized revenue of 330 million yuan (+ 18.2%) and net profit of 28.52 million yuan (- 22.5%) in 2023. The company's performance is basically in line with expectations.
The photovoltaic industry has led to high revenue growth. 1) the revenue of 2023H1's general automation business was 550 million yuan, an increase of 23.2% over the same period last year, accounting for 91.6%, and the revenue of CNC machine tool business was 44.2 million yuan, accounting for 7.4%. The rapid growth of General Automation is mainly due to the continued good development of the photovoltaic industry and the increase in customer sales of the company's products in the photovoltaic industry. At present, the company's industrial control products have been widely used in photovoltaic, lithium, robot, 3C electronics, packaging, textile, logistics, carpentry, laser and other industries. 2023H1 has implemented organizational structure adjustment, set up a number of industry departments, and set up professional marketing teams to cultivate key industries. 2) the company continues to introduce new products, 2023H1 company a new generation of Y7S servo products, a new generation of M-series control products, photoelectric sensor HSE-SF series officially listed.
Q2 profitability has improved month-on-month, gross profit margin is expected to be gradually repaired. 1) 2023H1's overall gross profit margin was 29.8%, down 2.7 ppm from the same period last year; of which Q2 single-quarter gross profit margin was 30.4%, down 2.3pp from the same period last year, and 1.4pp increased month-on-month. The company's major customers and terminals are mainly concentrated in the new energy industry, the sales prices of similar products in the new energy industry are lower than those in other industries, and sales in the new energy industry account for a relatively large proportion, as well as affected by product upgrading, the company's product gross profit margin has declined slightly compared with the same period last year, but compared with the previous year, the company's gross profit margin has been in the process of continuous repair since Q4 in 2022. 2) during the 2023H1 period, the expense rate was 23.0%, which increased 1.5pp compared with the same period last year, including sales expense rate of 8.8%, year-on-year increase of 0.8pp, management expense rate of 3.1%, year-on-year increase of 0.2pp, R & D expense rate of 11.3%, year-on-year increase of 0.8pp, and financial expense rate of-0.2%, a decrease of 0.3pp. 3) in terms of net interest rate, 2023H1's overall net interest rate was 8.5%, down 3.4 ppm from the same period last year; of which Q2 net interest rate in a single quarter was 9.0%, down 4.1pp from the same period last year, and 1.3pp increased month-on-month.
Profit forecast and investment advice. It is estimated that the company's return net profit from 2023 to 2025 is 1.21,1.70 and 229 million yuan respectively, corresponding to EPS 0.80,1.13,1.51 yuan respectively. In the next three years, the company's return net profit will maintain a compound growth rate of 36% and maintain the "hold" rating.
Risk tips: the risk that downstream demand is lower than expected; the risk of intensified market competition; the risk of new product and technology development; the risk of raw material price fluctuation.