Q2 performance has greatly increased compared with the previous month. In the first half of 2023, the company achieved operating income of 53.358 billion yuan, an increase of 5.78% over the same period last year; net profit of 295 million yuan, down 24.23%; and net profit of 206 million yuan, down 14.97% from the same period last year. Of this total, the operating income in the second quarter was 29.345 billion yuan, an increase of 1.11% over the same period last year; the net profit was 211 million yuan, down 17.47% from the same period last year, an increase of 149.5% over the previous year; and the net profit after deducting non-return was 191 million yuan, an increase of 42.09% over the same period last year.
Copper processing leader, continue to deepen the layout of high-end fields. The company is one of the largest copper and copper alloy material manufacturers with the most complete industrial chain in China. From 2020 to 2022, the total output of copper and copper alloy materials reached 137.62 million tons, respectively, maintaining a leading position in the industry.
In the first half of 2023, output was 911900 tons, an increase of 7.75 percent over the same period last year; external sales were 875400 tons, an increase of 16.74 percent over the same period last year, and the scale of production and marketing further increased. The company continues to deepen the production capacity layout of high value-added products. In the field of electromagnetic flat lines, the company currently has a production capacity of 20,000 tons of new energy electromagnetic flat lines, and the project under construction of 40,000 tons is progressing smoothly. In the field of rare earth permanent magnets, the company currently has a production capacity of 5000 tons in Ningbo. Baotou's "annual production capacity of 8000 tons of high-end manufacturing high-performance rare earth permanent magnet materials and devices" is progressing smoothly. The first phase of 4000 tons has now entered the stage of installation and commissioning and is expected to be put into production this year. The second phase is expected to be put into production in 2024.
The product structure is continuously optimized to create high competitiveness. In the first half of 2023, the company sold 86500 tons of copper products in new energy vehicles, photovoltaic, wind power and other fields, an increase of 10% over the same period last year.
At present, the company has a total of 97 new energy electromagnetic flat line development projects, 41 have been designated, a total of 18 high-voltage platform projects have been designated, and have reached cooperation intentions with a number of strategic customers, and have realized the batch supply of a number of 800V high-voltage platform electromagnetic flat line projects.
Investment suggestion: the company is a leading domestic copper processing enterprise, and copper and rare earth permanent magnets continue to expand, and continue to optimize the product structure, profitability is expected to improve. It is estimated that the operating income of the company from 2023 to 2025 will be 1153.18Uniq12947Universe 142.883 billion yuan respectively, and the net profit of returning to the mother will be 7000.977200,238 million yuan respectively, corresponding to EPS 0.470.67pm 0.84 respectively. For the first time, coverage gives an "overweight" rating.
Risk hint: copper processing fees decline, the progress of project construction is not as expected.