The income increased by 28.69%, while the net profit decreased by 11.16%. In the first half of 2023, revenue reached 8.389 billion, same increase of 28.69%, net profit of return to mother 889 million, same decrease of 11.16%, deduction of non-return net profit of 838 million, same minus 5.56% per share, Q2 single quarter revenue of 4.319 billion, same increase of 15.7%, return of net profit of 493 million, same decrease of 20.1%.
The photovoltaic glass pulls the glass plate income growth, the electronic glass competition intensifies. In the first half of the year, the revenue of the glass business sector (photovoltaic / engineering / float) achieved 6.335 billion, year-on-year + 43.04%, gross profit 22.58%, year-on-year-6.28pct, mainly due to the increase in photovoltaic glass production line revenue led to an increase in costs; solar business sector revenue 1.585 billion, year-on-year + 10.53%, net profit 356 million, year-on-year + 26.24% Electronic glass and display devices sector revenue 720 million, year-on-year-11.1%, net profit 15 million, year-on-year-86.61%, mainly due to increased competition in the industry, domestic electronic glass production capacity expansion caused by oversupply, and the shrinking global demand for electronic products and the popularity of embedded touch technology led to a decline in display sales.
Cost control continues to be optimized and cash flow is under pressure. In the first half of the year, the comprehensive gross profit margin was 22.58%,-6.29% year-on-year, and the net profit rate was 10.51%,-4.96% year-on-year. Benefiting from the continuous promotion of cost reduction and efficiency, the cost side continues to be optimized, with the expense rate of 10.80%, year-on-year-1.18pct, in which the sales / management / finance / R & D expense rate is 1.75%, 4.06%, 0.87%, 4.13%, respectively, compared with the same period last year-0.30/-0.83/-0.10/+0.05pct. In the first half of the year, the operating net cash flow was 518 million,-42.28% compared with the same period last year, mainly due to the increase in cash paid for goods and services.
Steadily promote the business layout and further consolidate the core competitiveness. In terms of photovoltaic glass, the No. 4 kiln in Fengyang was ignited successfully in May this year. At present, seven furnaces can produce about 2.72 million tons of photovoltaic calendered glass per year, and two 1200t/d production lines in Beihai are under construction in an orderly manner as planned. In terms of electronic glass, the company has completed full coverage of high, middle and low-end electronic glass products, and the new 100t/d ultra-thin production line of Hebei Windows has entered the preparation stage before commercialization. In terms of engineering glass, it is speeding up the construction of Xi'an energy-saving base project; in terms of solar energy business, the company plans to build a new 50,000-ton high-purity silicon project in Qinghai, which will further expand solar energy business after completion.
Risk tips: demand release is lower than expected; cost rise is higher than expected; supply increase is higher than expected investment suggestion: competitive strength is outstanding, maintain "buy" rating.
The company is a domestic leading brand of energy-saving glass and a famous brand of solar photovoltaic products and displays, with obvious advantages in the industry. in recent years, it continues to adjust the product structure and speed up the development of new energy and new materials. As photovoltaic glass production capacity continues to be put into production, capacity ranks among the forefront of the industry, electronic glass maintains the leading edge in domestic technology, and the solar sector maintains corporate competitiveness in market segments. It is estimated that in 2023-25, EPS will be 0.62 EPS 0.74max 0.82 yuan per share, corresponding to PE 9.3max 7.9max 7.1x, maintaining a "buy" rating.