Event: the company's 2023H1 realized an income of 280 million yuan, a drop of 22.26%, a net profit of 65.1007 million yuan, a decrease of 26.98%, a deduction of non-net profit of 52.7944 million yuan, and a drop of 39.02%. 2023Q2 realized income of 152 million yuan, down 15.21%, realized net profit of 27.8301 million yuan, 33.27%, deducted non-net profit of 20.8828 million yuan, and decreased by 50.21%.
23H1's revenue fell year-on-year and profits came under pressure.
Comments:
The performance of washing and care products was eye-catching, and sales of sterilized wipes decreased and revenue declined. 2023H1's operating revenue fell 22.26% year-on-year, mainly affected by a sharp drop in sales of disinfection wipes. In terms of business, the income of 2023H1 wipes and masks reached 231 million yuan and 29.4831 million yuan respectively, an increase of-26.06% and-8.30% over the same period last year. The income of 23H1 washing and care products reached 1.0429 million yuan, an increase of 100% over the same period last year. The main reason is that the company has officially opened up the field of washing and care business since 2022, focusing on the research and development of washing and care products, and is committed to improving the strength of washing and care products.
Gross margin remained basically stable and operating cash flow shrank. 1) the gross profit margin of 2023H1 also increased by 0.53PCT to 33.04%, which remained basically stable. 2) the rates of sales, management, finance and R & D expenses of 2023H1 Company are 1.33%, 7.99%,-2.55% and 4.03%, with the same increase of 0.68PCT, 4.38PCT, 2.38PCT and 0.31PCT. Among them, the increase in the rate of sales expenses and management expenses is mainly affected by the increase in sales, managers' compensation and share payment; the decline in financial expenses is mainly caused by the decrease in interest income and exchange earnings; and 23H1's revenue and R & D investment have declined, leading to a slight increase in the rate of R & D expenses. 3) the net operating cash flow of 2023H1 Company was 45.9891 million yuan, a decrease of 67% over the same period last year, mainly due to the decrease in cash received by the company in the first half of the year in selling goods and providing labor services.
Wipes market head advantage continues to strengthen, long-term binding to high-quality customers around the world. Over the years, the company has focused on the market development of wet wipes, forming significant core advantages in technology research and development, quality control, customer resources, product types and so on. including baby, adult function, antibacterial disinfection and other six series and more than 60 varieties. In terms of research and development, the company has a professional R & D team, has the ability to independently develop the formula of wipes solution, and constantly strengthen the research and development of new products and processes.
In terms of production, the company sets up a standard GMP workshop, introduces advanced production lines from many countries around the world, and continues to improve the intelligent level of production lines to ensure efficient and stable production. In terms of customers, we believe that with strong R & D and quality control capabilities, the company continues to bind with Kimberly-Clark, Johnson & Johnson, L'Or é al and other customers, bringing a strong endorsement for the company's product quality and production technology advantages.
Profit Forecast and Investment suggestion: we maintain the company's 2023-2025 homing net profit forecast of 1.30 RMB 1.68 billion RMB, and the current stock price corresponds to 22.92 times PE for 23 years. We are optimistic that the printing and dyeing industry high barriers, concentration is expected to improve, the company continues to expand new categories, new customers, the main business growth space, maintain the "buy" rating.
Risk factors: lower than expected capacity expansion, increased competition in the industry, raw material price fluctuations and other risks.