Events:

According to the semi-annual report for 2023, the company achieved 460 million yuan in revenue in the first half of 2023, + 18.2% year-on-year, 61 million yuan in net profit, + 18.8% in the same period last year, 61 million yuan in net profit after deducting non-return, + 22.5% in the same period last year, including 255 million yuan in revenue in 2023Q2, + 29.8% in the same period last year, 39 million yuan in net profit in 2023, + 26.9% in the same period last year, and 38 million yuan in net profit after deducting non-return, + 31.7% in the same period last year.

Revenue side: 23Q2 revenue of 255 million yuan, year-on-year + 29.8%, month-on-month + 24.1%, the same month-on-month improvement. 23H1 achieved revenue of 460 million yuan, + 18.2% compared with the same period last year, of which the revenue of automobile fuel system hose business was 108 million yuan, + 27.8% year-on-year, and that of automobile cooling system hose business was 278 million yuan, + 18.7% year-on-year. 23H1, the company's fuel pipe and cooling pipe business have achieved varying degrees of rapid growth.

23Q2's revenue was 255 million yuan, + 29.8% from the same period last year, and revenue from 23Q2 was higher than the same period last year.

Gross profit margin: 23Q2 gross margin 26.37%, year-on-year + 1.64pct, month-on-month + 3.16pct. 23Q2 company gross profit margin of 26.37%, month-on-month + 3.16pct, the company's profit level improved significantly compared with the previous month.

Profit end: 23Q2's home net profit is 39 million yuan, + 26.9% compared with the same period last year, and + 72.6% compared with the previous year. The company's 23Q2 profit growth rate is slightly lower than the revenue growth rate, mainly due to the company 23Q2 provision credit impairment loss (3.75 million yuan), asset impairment loss (4.39 million yuan).

New energy vehicle business continues to develop, energy storage & big data super-calculation business into the fast lane. 1) New energy vehicles.

The company has actively laid out the field of new energy vehicles, and has established long-term and stable cooperative relations with BYD (dynasty series, ocean series, momentum series, warship series, etc.), Guangqi Eian (AION Y/S/V/LX, etc.), Changan new energy (deep blue series), Jinkangsailis (intersecting series, etc.), Geely new energy (Lecker, polar krypton, etc.), Li Auto Inc. and other new energy vehicle manufacturers. It is expected to grow together with high-quality customers in the future. 2) Energy storage & the field of big data supercalculation. The company makes use of the technical advantages such as the formula in the automotive pipeline system to expand the development of non-end products and customers. In the field of energy storage, it has established business negotiations or cooperation with more than 40 energy storage customers, such as G customers, B customers, Q customers, and achieved batch supply. In the field of big data supercomputing, the cooling system pipeline products used by a big data server company have been successfully developed and verified by customer No. 1.

Investment advice and profit forecast: the company's operating income from 2023 to 2025 is estimated to be 11.65,16.79 and 2.143 billion yuan respectively, and the return net profit is 1.65,2.47 and 330 million yuan respectively. Corresponding to the current market capitalization, PE is 19,13 and 10 times respectively. Maintain the "overweight" rating.

Risk tips: the risk of macroeconomic fluctuations, the sharp rise in raw material prices, the lower-than-expected sales of new energy vehicles, the lower-than-expected launch of new capacity, the continuation of chip shortage, and the progress of new product research and development.