Event: the company publishes its 2023 semi-annual report. The company's 2023H1 realized revenue of 84 million yuan, an increase of 85.91%, and a net profit of-5 million yuan, a decrease of 156.71%. Among them, the single-quarter revenue of 23Q2 was 52 million yuan, an increase of 102.65%, and the net profit of returning to the mother was-2 million yuan, with a drop of 252.11% compared with Q1.
The income of watt-hour meter testing is high, and the reserve order of energy storage business is sufficient.
From a sub-business point of view: in the first half of 2023, 1) watt-hour meter testing business: the income of electric energy metering supporting product series was 76 million yuan, with an increase of 263.05%, with a gross profit margin of 33.79% (- 1.70pct); the income of watt-hour meter standard and calibration device product series was 7 million yuan, down 61.28%. 2) Energy storage business: Sanhui Energy, a subsidiary of 23H1, has not generated income yet, with a net profit of-3.8987 million yuan. According to the latest announcement, on August 29, the company announced that Sanhui Energy and Xiaodong New Energy signed a procurement contract, Xiaodong New Energy purchased energy storage system (including battery system, BMS, PCS, liquid cooling unit, etc.) from Sanhui Energy, with a total contract value of 402 million yuan. At present, the company has large savings and industrial and commercial savings orders, and it is expected that Q3 company orders will be delivered one after another to form business revenue, and it is expected to make a profit by the end of the year.
From a regional point of view, 23H1's income in eastern China increased by 258.04% to 49 million yuan, accounting for about 58.50% of revenue, while that in central China increased by 40.49% to 20 million yuan, accounting for about 23.72% of revenue.
The rise in the price of raw materials puts short-term pressure on the company's Q2 gross profit margin.
Gross profit margin: the gross profit margin of the company's 23H1/23Q2 is 33.01% and 33.25%, which is mainly due to the increase in the cost of raw materials. Rate side: the establishment of subsidiary Sanhui Energy leads to an increase in management expenses and R & D expenses, with a rate of 37.77% during the 23Q2 period, same / ring ratio-21.77pct/-16.98pct
Net profit end: 23H1/23Q2 net interest rate year-on-year-4.63pct/-11.68pct to 3.54% Universe 6.90%.
Looking forward to 2023: 1) ammeter detection: related to smart meter cycle replacement, gradually adapt to the function iteration and parameter improvement of smart meter. The testing equipment is digital and intelligent, and the market capacity is expected to increase steadily. 2) Energy storage:
In terms of major storage, Sanhui Energy signed an energy storage equipment supply contract with Xu Ji Electric in June at a price of 21.2409 million yuan; signed a strategic cooperation agreement on cell supply with Penghui Energy; and signed a "Strategic Cooperation Framework Agreement" with China Electric Power Construction East China Institute. In terms of industrial and commercial storage, Sanhui Energy launched an all-in-one industrial and commercial storage machine in July and signed an 20MWh industrial and commercial storage order with Zhejiang Hongxi. Relying on the superior customer resources in Zhejiang Province, the scale of industrial and commercial storage orders is expected to grow rapidly.
It is expected that the subsequent landing of the company's energy storage orders will contribute to the company's performance flexibility.
Profit forecast and investment advice. It is estimated that the company's 2023-2025 net profit will be 0.25 million yuan, or 92.2%, 262.2% and 35.1%, respectively, to maintain the "overweight" rating.
Risk tips: domestic and foreign electricity meter demand is lower than expected, raw material prices rise, energy storage product demand is lower than expected, forecast deviation and valuation risk.