Core ideas:
Lianwang Laser released its 23-and-a-half annual report. In the first half of the year, the company realized operating income of 1.7 billion yuan, an increase of 72.33% over the same period last year, and a net profit of 199 million yuan, an increase of 183.59% over the same period last year. Of these, 2023Q2's main income was 934 million yuan, up 51.81% from the same period last year, and the net profit from its mother was 111 million yuan, up 100.79% from the same period last year. According to the semi-annual report, the high performance is mainly due to the expansion of power battery manufacturers, the increase of cutting-edge science and technology application scenarios and the transformation of traditional industries, laser welding equipment ushered in the development opportunity.
The scale effect reflects that the net interest rate has increased significantly. The company's 23Q2 gross profit margin was basically stable, falling 0.65pct to 35.34% compared with the same period last year. During the 23Q2 period, fees rose 27.02% compared with the same period last year, which is significantly lower than the increase in income. Among them, management expenses are relatively stable, sales and R & D expenses increased by more than 40% year-on-year, financial expenses decreased by 18%, and the overall expense rate dropped 4.34pct to 22.24% year-on-year. Scale effect led to increased profitability, 23Q2 net interest rate rose 2.88pct year-on-year to 11.87% 23Q2 23H1 net interest rate rose 4.58pct to 11.7%.
The core technology is advanced and the research and development achievements are quite fruitful. 23H1 has invested a total of 106 million yuan in 43 research projects and made progress in laser, laser optical system, laser technology and other fields. In the aspect of laser, the prototype design, installation and debugging of welding special continuous fiber laser and special purpose laser are completed, the development of core devices such as semiconductor beam combiner and a full series of ring spot fiber laser are realized, and some models of blue light fiber hybrid welding are delivered; in terms of laser technology, the welding speed of cylindrical battery is improved to 500mm/s.
Profit forecast and investment advice: the company's net return profit from 2023 to 2025 is expected to be 4.79max 7.00 / 946 million yuan, an increase of 79%, 46% and 35% respectively over the same period last year. Taking into account the high growth of the company, we value the 23-year return net profit of the company at 25 times, corresponding to a reasonable value of 35.36 yuan per share, and maintain a "buy" rating.
Risk tips: laser welding industry market competition risk; downstream demand fluctuation risk; gross profit margin decline risk.