Event: The company released its 2023 semi-annual report. 1) 2023H1 achieved operating income of 1,769 million yuan, up 29.19% year on year; net profit attributable to shareholders of listed companies was 366 million yuan, up 48.56% year on year; net profit after deducting net income of 352 million yuan, up 60.44% year on year. 2) 2023Q2 achieved operating income of 1,079 million yuan, up 39.31% year on year; net profit attributable to shareholders of listed companies was 249 million yuan, up 61.02% year on year; net profit after deducting net income of 242 million yuan, up 71.48% year on year.
The growth rate of vacuum products is fast, and the photovoltaic industry has significant advantages in deepening cultivation. The company achieved revenue of 1,769 billion yuan in 2023H1, an increase of 29.19% over the previous year. By product, the company's vacuum products achieved sales revenue of 746 million yuan, an increase of 45.00% over the previous year, accounting for 42.19% of sales; the company's compressors (group) achieved sales revenue of 888 million yuan, an increase of 21.76% over the previous year, accounting for 50.74% of sales.
The company has achieved good growth in sales of its main products, compressors (groups) and vacuum products. The company's dry pump products in the photovoltaic long crystal and cell industry have won a large market share with advantages such as high cost performance, durability, and reliable operation, and excellent application performance, and have won praise and favor from the market and customers. The company's vacuum products have achieved a high performance growth rate.
Product structure is optimized, and profitability continues to increase steadily. The company's gross margin for 2023H1 was 38.37%, year on year +4.16 pct; return net profit margin was 20.66% year on year, +2.69 pct; net profit margin after deducting non-return home was 19.88%, year on year +3.87 pct; period expense ratio was 14.81%, +0.89 pct year on year. The company's gross margin for 2023Q2 was 39.34%, +2.49 pct, year on year, +4.16 pct; return net profit margin was 23.08% year on year, +3.11 pct year on year; net profit margin after deducting non-return home was 22.42%, +4.20 pct year on year. Due to the increase in sales share of vacuum products with higher gross margin levels, the company's overall gross margin has increased significantly. Benefiting from this, the company's overall profitability has steadily increased.
The semiconductor sector has a lot of reserves and is expected to become a new growth pole. The company has accumulated a great deal of R&D and application experience in the field of vacuum application technology. At present, the company has a full range of medium vacuum dry vacuum pump products that can meet the most advanced semiconductor production processes. As a leader in screw vacuum pumps, the company has a lot of market space in the domestic replacement market for semiconductor vacuum pumps, and is expected to become a new growth pole for the company.
Profit forecast and investment suggestions: We expect the company's revenue from 2023-2025 to be 39.85/47.48/5.627 billion yuan, YoY +22.03%/19.13%/18.52%; return net profit is 793/992/1,198 million yuan, +23.11%/23.02%/20.79%; EPS is 1.48/1.85/2.24 yuan, corresponding PE is 17/14/11 times, respectively. Maintain a “buy” rating.
Risk warning: raw material price fluctuation risk; national industrial policy risk; business management risk