occurrences
The company released its semi-annual report: the company's revenue for the half-year of 2023 was 1,469 million yuan, an increase of 0.27% over the previous year; net profit attributed/non-attributable net profit was 167/173 million yuan, respectively, an increase or decrease of +8.18%/-8.22% over the previous year. Among them, the company achieved revenue of 764 million yuan in the Q2 quarter, an increase of 2.72% over the previous year; net profit attributed/non-attributable net profit was 0, respectively.
96/114 million yuan, a year-on-year increase or decrease of +12.06%/-5.91%, respectively.
The overall performance remained stable. The auto parts and small appliance motors and components industry performed well by industry. Looking at each industry, 23H1's air conditioning motors and components/washing machine motors and components/auto parts/medical and sports health motors and components/industrial control motors and components/small household appliance motors and components/refrigerator motors and components had separate revenue 4.
00/2.14/1.80/1.56/1.50/1.48/118 million yuan, year-on-year changes of 1.62%/-5.53%/22.43%/3.71%/-6.60%/14.31%/-6.96%, respectively. Among them, auto parts, small household appliances and components achieved medium- to high-speed growth.
Gross margin increased across all categories, and profitability improved year-on-year
In terms of profitability, 2023H1's gross margine/net profit margin was 30.71%/11.40%, respectively, an increase of 2.66/0.83 pct over the previous year. The increase in gross margin was due to the increase in gross profit of the auto parts industry to which it belongs (contributing a gross profit increase of 32.0%). In terms of expenses during the period, 2023H1's sales/management/finance rates were 2.64%/8.96%/-3.34%, respectively, an increase of 0.71/1.12/1.46 pct over the previous year; among them, the increase in financial rates was mainly due to a decrease in exchange earnings compared to the same period last year. 23H1's R&D fee rate was 5.06%, an increase of 0.23pct over the previous year, and remained stable.
New industrial control products need to be implemented urgently. The automotive motor and parts field is deeply tied to high-quality customer new product development. In the industrial control field, the company's miniature sliding screws, planetary ball and roller screws, brushless hollow cup motors, their precision transmission components, servo motors, etc. are all currently in the sample testing stage. The superposition of the company's automated production line provides solid technical support and delivery guarantees for subsequent high-end manufacturing and modular products, and is expected to continue to expand in the future. On the customer side, in the field of automotive motors and components, the company aims at the development trend of electronic and lightweight automotive parts, and has established strategic partnerships with excellent auto parts companies such as Haili New Energy, Tudaton, and Autoliv on the basis of cooperation with high-quality customers such as Yutong, Jinlong, Elsie, and Casco. At the same time, it has successfully entered the NEV aluminum die casting industry. 23H1 has established strategic partnerships with Mino, Haili New Energy and Decaux.
Investment advice and profit forecasting
The company is a leading enterprise in the field of micromotors in the world. Its business covers home appliances, automobiles, medical and other industries. The company has outstanding performance, strong R&D capabilities and sufficient technical reserves. We are optimistic about the company's long-term development. The company is expected to achieve revenue of 34.61/41.27/4.937 billion yuan in 2023-2025, respectively, net profit of 348/4.22/496 million yuan, EPS of 1.10/1.33/1.56 yuan/share, corresponding PE of 29.59/24.44/20.81 times, maintaining the “buy” rating.
Risk warning
Technological innovation risk, exchange rate risk, risk of rising labor costs, risk of fluctuating raw material prices