According to the company's semi-annual report for 2023, the company's 23Q2 income increased by 13.3% (23Q1 increased by 11.6%), and the net profit returned to the mother increased by 30 million, with an increase of 678.7% (23Q1 increased by 325.7%). After deducting the non-return net profit of 30 million, the net profit increased by 509.3% (23Q1 increased by 210.5%). 23H1 realized income of 1.12 billion, an increase of 12.7%, a net profit of 50 million, an increase of 487.3%, and a deduction of 40 million of non-return net profit, an increase of 345.5%.

Sub-channel, 23H1 engineering channel (B side) 480 million (46.6%), same increase of 9.9%; dealer retail channel (C side) 230 million (22.5%), same increase of 7.3%; dealer engineering channel (b side) 300 million (28.89%), same increase of 6.7%; e-commerce channel 20 million (2.0%), same increase of 22.7%.

Sub-products, 23H1 steel safety doors sales 710 million (68.3%), with a decrease of 2.8%; other doors 250 million (24.5%), an increase of 59.4%; smart locks 70 million (7.2%), an increase of 11.1%.

Net cash flow from 23H1's operating activities was 140 million (compared with-230 million in the same period in 22 years), mainly due to sales growth and increased rebates.

23H1's gross profit margin is 26.6%, with an increase of 5.0pct; the net return to the home is 4.4%, with an increase of 5.6pct.

The production scale effect of the company is obvious, which ensures reasonable profit space. The 23H1 sales / management / R & D / financial expense rates are 11.4%, 4.4%, 2.7%, 0.1%, respectively, compared with the same period last year-0.9/-0.4/-0.7/0.8pct.

Focus on the development of engineering customers, distribution + e-commerce multi-channel operation

The company mainly has three kinds of sales channels, which are dealer channel, engineering channel and e-commerce channel.

At present, the company has formed a diversified sales channel system, such as direct sales, distributors and e-commerce platforms, with obvious advantages of distributor channels, basically covering more than 2800 counties, cities and regions across the country, and tens of thousands of service outlets. Installation and after-sales service are guaranteed. Since 2021, the company has focused on the development of engineering customers, and the company headquarters has adopted various ways to strengthen the strategic coordination with the head housing enterprises, encourage and support engineers and dealers to open up project orders, and set up a direct sales team to actively follow up. The company continues to maintain cooperative relations with major high-quality real estate developers, vigorously expand the categories of cooperative products, and sign strategic cooperation agreements with famous real estate development enterprises such as Longhu, China Resources, Poly, Vanke and other famous real estate development enterprises. was rated as the first choice of real estate supplier steel door category, and vigorously expand the product category of cooperation with engineering customers, on the basis of entering the door, increased the cooperation of intelligent lock products and wooden doors. The company signed a strategic alliance agreement with the benchmarking mall to expand new retail channels.

Intelligent manufacturing empowers, production scale effect is obvious.

Combined with the all-channel e-commerce solution, through the construction of intelligent production system, the company has built the data interconnection, sharing and sharing of automatic, intelligent and pipelined manufacturing and processing equipment for anti-theft security door manufacturing; realize the construction of intelligent logistics and warehousing system Form a new discrete intelligent manufacturing application model with Wang Li security characteristics, improve quality and efficiency, reduce labor intensity, reduce operating costs, form a new manufacturing model that can be replicated and popularized in the industry, and lead the transformation and upgrading of the industry.

At present, the domestic safety door market has higher and higher requirements for customized and personalized products, and customized production puts forward higher requirements for the flexibility of safety door production. The company is one of the largest safety door enterprises in China, with three major production bases in Changtian, Wuyi and Sichuan, among which Changtian production base is a fund-raising project, which mainly produces steel safety doors, other doors and intelligent locks. Now it is in the stage of constantly debugging and optimizing the production line and coordinating the connection of various production links. It has not yet reached the planned production capacity, and the production capacity is still climbing. 23H1 output has increased greatly. Wuyi production base mainly produces non-standard products such as steel safety doors and other doors, the output is relatively low; some factories in Sichuan production base have been put into production, and the output of 23H1 has increased greatly.

Maintain profit forecast and maintain "overweight" rating

The company implements the development strategy of "intelligent manufacturing, intelligent management and intelligent products", continuously improves the product structure, constructs a multi-channel and multi-category marketing system, and continuously optimizes the trial operation status of the production line of Changtian production base. committed to raising investment project capacity, promote the construction of Sichuan production base, further reduce cost and increase efficiency Build and strengthen the marketing service system, strengthen the development of engineering channel customers, and carefully control the payback risk of engineering channel customers. We estimate that the company's annual return net profit on 23-24-25 will be 2.1 million yuan, respectively, and the EPS will be 0.5 yuan, 0.6 yuan, 0.8 yuan per share, respectively, and the corresponding PE will be 24X/19X/15X, respectively, maintaining the "overweight" rating.

Risk tips: macroeconomic cycle fluctuation risk; industry and market competition aggravating risk; real estate industry fluctuation risk; dealer management risk; receivables growth and bad debt risk; gross profit margin decline risk.