The net profit of 23H1 is + 9.05% compared with the same period last year, and the increase in gross profit margin shows competitiveness. The company released the 2023 report: 23H1 achieved revenue of 338 million yuan (year-on-year + 27.59%). The net profit is 9.25 million yuan (+ 9.05% compared with the same period last year) and 7.24 million yuan (+ 114.42% compared with the same period last year). The increase in the delivery volume of lithium adsorbent materials and iron phosphate cleaner production projects led to an increase in income compared with the same period last year, but the company recorded a credit impairment loss of 16.58 million yuan in the first half of the year, resulting in a low growth rate of net profit. The company's 23H1 gross profit margin is from + 2.19pct to 26.24% compared with the same period last year, showing the competitiveness of the company's core business.
Salt Lake Lithium extraction: 23H1 newly signed order of more than 700 million yuan, through the sales of EPC+ core materials + BOT whole industry chain. The company ushered in two major breakthroughs, according to the report: (1) Core material adsorbent: 23H1 signed the supply contract of aluminum series lithium adsorbent in Mamituo Mining Industry, the second phase of 6000 tons / year production line project was accelerated, and the third generation aluminum series and titanium series lithium adsorbent materials were put on the market, all of which indicate that the company has the commercial ability of core adsorbent materials. (2) BOT: in the first half of the year, the Bangosuo Salt Lake BOT project (equipment investment of no more than 195 million yuan) and Jibuchaka Salt Lake BOT project (total investment of 293 million yuan) were signed. With the commissioning of the above projects, the company has opened the whole process of "EPC+ core materials + operation" salt lake lithium extraction, and is expected to achieve sustained and stable profits and cash flow returns. In addition, the company is promoting the research on lithium extraction from underground brine and ore mother liquor in oil and gas fields, so as to empower long-term growth.
Ceramic membrane business provides safety cushions, multi-field expansion to ensure high growth. According to the report: the revenue of 23H1 membrane integration solution and complete sets of equipment / materials and accessories is 279 million yuan. According to the periodic report and the company official account: (1) the application scenario of CO fuel ethanol is more than 200,000 tons / year.
(2) Resource utilization of titanium gypsum: a demonstration project of 85000 tons / year was signed with Nanjing titanium dioxide in 21 years.
Profit forecast and investment advice. It is estimated that the net profit of homing in 23-25 years is 0.88 trillion yuan, and the corresponding PE is 42.26, 19.64 and 14.51 times. Ceramic membrane business provides safety cushions, salt lake lithium extraction is about to release, multi-field expansion to promote, the company has a high growth attribute, maintain 39.59 yuan / share reasonable value of the point of view unchanged, corresponding to 23 years 55 times PE, maintain the "buy" rating.
Risk hint. The progress of the project is not as expected, the sales of membrane equipment is not as expected, the competition is intensified and so on.