The company released its 2023 mid-year report. 23H1 achieved operating income of 214 million yuan, an increase of 16.55% over the previous year, and realized net profit not attributable to parent - 20 million yuan, a year-on-year change of -26.86%. The main reason was the increase in share payment expenses and depreciation expenses. 23Q2 achieved operating income of 130 million yuan, an increase of 33.37% over the previous year, and realized net profit not attributable to parent - 06 billion yuan, an increase of 34.60% over the previous year.

In terms of cost rate, the company's 23H1 sales expense rate/management expense rate/R&D expense rate/financial expense ratio were 7.80%/32.54%/9.56%/1.38%, respectively. The year-on-year change was +1.15 pcts/-0.28 pcts/+2.44 pcts/+1.49 pcts. The reason was that the company merged to add R&D expenses for subsidiaries.

Core technology continues to iterate and expand business by investing in new companies. By business, 23H1's special surface engineering chemicals/special surface engineering equipment achieved revenue of 149/061 million yuan respectively.

1) Special chemicals for surface engineering: The company has successfully developed core technologies such as preparation of high-efficiency monocrystalline heterojunction solar cell electroplating additives and preparation of cyanide-free electroplating additives, and realized large-scale applications.

In addition, the company cooperates with Harbin Institute of Technology and the Shenzhen Research Institute of Beijing Institute of Technology in the fields of high-speed electroplating and new energy special chemicals and special chemicals for special equipment. 2) Special equipment for surface engineering: The company's first one-step composite copper foil equipment line has completed customer acceptance. In addition, the company held 51% of Mingyi Electronics through a capital increase to expand the printed circuit board, IC carrier board and semiconductor equipment business.

The size will definitely be increased, and large orders will land. The company will raise no more than 592 million yuan of capital by issuing a fixed increase of no more than 592 million yuan, of which it plans to invest 98 million yuan to build a high-end composite copper foil equipment production center and supporting facilities. It is expected to produce no less than 10 sets of composite copper foil equipment every year. The company's composite copper foil equipment mainly uses a one-step full-wet process, which has outstanding performance in coating uniformity, process automation, etc., and can be applied to the production of composite copper foil with different substrates. The cost of composite copper foil manufactured is about 3.8-4 yuan/square meter. After large-scale scaling, it is expected to drop below 3 yuan/square meter, and the yield is expected to reach over 95%. On September 4, 23, the company and Jiayuan Technology signed an order for one-step full-wet composite copper foil equipment, totaling 243 million yuan. In the future, the two sides will jointly expand the composite fluid collector market by establishing a research institute, increasing capital and expanding shares, etc. As the industrialization of downstream composite fluid collector accelerates, the company's composite copper foil equipment business is expected to experience a high increase.

Considering that one-step composite copper foil equipment is expected to bring new volume to the company, we have given the company's revenue forecast for 2023/2024/2025 to 592/7.65/941 million yuan, with year-on-year growth rates of 62.40%, 29.24%, and 22.95%, respectively. Net profit for returning mothers is 0.35, 0.97, 130 million yuan, an increase of 209.87%, 173.37%, and 33.88%, corresponding to EPS of 0.38, 1.04, 1.40 yuan, corresponding to PE of 200, 73, 55 Double, give it a “increase in holdings” rating.