Events:
Recently, the company released its semi-annual report for 2023. In the first half of 2023, the company realized operating income of 1.63 billion yuan, year-on-year + 13.98%; net profit of 90 million yuan, + 270.44%; single 2023Q2 company realized operating income of 747 million yuan, + 14.75%; and net profit of 38 million yuan, turning losses into profits, year-on-year. Comments are as follows:
The gross profit margin is relatively stable and the expense rate decreases during the period. 2023H1's comprehensive gross profit margin is about 36.19%, year-on-year + 0.06pct, net profit rate is about 5.37%, year-on-year + 9.19pct. In the first half of the year, the expense rate of the company during the period was about 30.25%, of which the sales / management / R & D / financial expenses accounted for 9.45% of the operating income, respectively. 6.23% of the sales / management / R & D / financial expenses accounted for 14.69% of the operating income. The overall control was good. The net cash flow of operating activities realized by 2023H1 Company was about-284 million yuan, and that of single Q2 was about-279 million yuan. The main reason is that the company's products are highly customized. Production and acceptance are greatly affected by the cycle, but most of the company's customers are high-quality enterprises such as Apple Inc industrial chain, which are usually expected to be improved in the fourth quarter of the third quarter.
The "3-1" strategy continues to advance, and the business blossoms at many points. From a sub-sector point of view, in the 3C business field, the company achieved business income of 1.3143443 billion yuan, + 30.46% compared with the same period last year. The main reason is that the company continues to expand its product range. At present, the proportion of non-mobile phone business has reached 55%. Great breakthroughs are expected to be made in flexible modular production lines, MR equipment and e-cigarettes in the future. In the field of new energy, the company achieved operating income of 264.2993 million yuan,-4.56% compared with the same period last year, mainly because the new energy vehicle industry chain is facing greater pressure when it enters the overall destocking cycle, but the company actively develops and launches a variety of leading products, such as thermal composite cutting and stacking integrated machine and tunnel cavity injection machine; in the semiconductor field, the company's orders for high-precision eutectic machine continue to increase; high-speed and high-precision solid crystal machine is expected to complete product development by the end of December. AOI testing equipment is expected to complete prototype delivery in September, the company continues to expand categories, actively looking for breakthroughs; spare parts, the company actively develop overseas markets, closely follow the Lithium Electric head enterprise sea plan, is expected to continue to benefit.
Issue equity incentives to focus on medium-and long-term development. In August 2023, the company issued a draft of equity incentive, the number of restricted shares to be granted is 4.8365 million shares, of which directors, senior managers, core technical personnel and foreign employees will be awarded about 875700 shares, and 3.9608 million core backbone shares will be awarded, accounting for about 81.89%. The company attaches importance to talents and is optimistic about medium-and long-term development.
Investment advice and rating: the company's 2023-2025 net profit is expected to be 436 million, 611 million and 747 million, respectively, corresponding to PE 28x, 20x, 16x, the first time to cover the "overweight" rating.
Risk hints: the promotion of new products is not as expected; the risk of failure of profit forecasting and valuation models