Description of the event
On August 24, 2022, the company released its 2023 semi-annual report. The company achieved revenue of 3,709 million yuan in the first half of the year, an increase of 9.81% over the previous year, and achieved net profit of 381 million yuan, an increase of 5.46% over the previous year.
Revenue and profit achieved steady growth
In the first half of 2023, the company unswervingly promoted high-quality development, scientifically coordinated the “three markets”, actively explored marketing model innovation, continuously optimized product restructuring, insisted on innovation-driven industrial development, accelerated the construction of key projects, helped repair and strengthen the chain, continued to push forward further enterprise reforms, continuously enhance risk prevention and control capabilities, steadily expand production scale, and continuously improve core competitiveness, and achieve steady development. In the first half of the year, the company achieved operating income of 3,709 million yuan, net profit attributable to shareholders of listed companies of 381 million yuan, and sales volume of 16,687.43 tons of titanium products.
Empower technology to accelerate implementation of innovation-driven implementation
The company focuses on domestic and foreign industry development trends, continuously follows up on titanium demand in various fields, focuses on promoting the pre-research and industrialization process of new products, promotes the transformation of scientific research results into economic benefits; takes national key projects and special tasks as the core, deepens exchanges and cooperation with research institutes, actively carries out key technical research and development, and continuously enhances scientific research and innovation capabilities; coordinates the allocation of scientific and technological innovation resources, optimizes the scientific research and innovation system, and improves the incentive mechanism for scientific research talents to fully stimulate the independent innovation momentum of scientific research talents. In the first half of 2023, the company successfully developed ultra-long single-weight, high-performance titanium alloy sheets, which achieved a breakthrough in single weight and length in China; developed large-size extruded pipes, which filled gaps in the country; the company received a total of 10 scientific and technological achievement awards at all levels and obtained 2 patent authorizations.
Investment advice
According to the interim report, we adjusted our profit forecast, and the company's net profit for 2023-2025 is expected to be 805 million, 9.99 million yuan, and 1,301 million yuan respectively (the value before 2023/2024 was 927 million yuan/1,198 million yuan), with year-on-year growth rates of 44.5%, 24.1%, and 20.2%. The corresponding PE is 19.58, 15.78, and 13.13 times, respectively. Maintain a “buy” rating.
Risk warning
Industry demand fell short of expectations, capital and construction progress fell short of expectations, and industry competition intensified.