Event: the company reported that H1 achieved revenue of 9.219 billion yuan in 23 years,-19.46% of the same period last year, and net profit of 350 million yuan,-41.28% of the same period last year. Among them, Q2 company achieved revenue of 4.71 billion yuan, year-on-year-18.77%, month-on-month + 4.47%; return to the mother net profit of 196 million yuan, year-on-year-48.68%, month-on-month + 26.53%.
Under the weak demand, the company reduces the cost and enhances the profit resilience. In the first half of 23, the tension in external trade superimposed the destocking of related industries, and the market demand declined significantly. Although domestic demand gradually recovered, the overall operation of domestic enterprises was still under pressure. The company has fully implemented cost reduction and efficiency, and is committed to improving profitability resilience under the background of weak demand: 1) Technology:
Strengthen process innovation, optimize process flow, improve product production efficiency and reduce product cost; 2) operation:
From the production, procurement, sales, packaging, logistics, manpower and other multi-dimensional lean management to achieve cost reduction and efficiency.
The integrated layout of overseas industrial chain continues to advance. Under the tense international trade situation, the company acquired Slim Aluminum and its subsidiaries, with two production bases in Sistner (Italy) and Metzburg (Germany) respectively, with a total European production capacity of about 135,000 tons / year, with aluminum foil billet, aluminum plate, strip and foil products production capacity, optimistic about the subsequent European market share competitiveness.
The impairment loss of Q2 decreased, the ratio of operating cash flow improved significantly, the financial expenses of H1 decreased obviously, and the ending inventory decreased. 1) impairment loss: 23H1 Company provides for asset impairment of 38 million yuan and credit impairment of 17 million yuan, of which Q2 provides for asset impairment of 0 billion yuan and credit impairment of 4 million yuan; 2) operating cash flow: the net operating cash flow of the company in the first half of the year is 1.157 billion yuan, which is + 0.5% compared with the same period last year, of which 23Q2 operating cash flow is 1.024 billion yuan, quarter-on-quarter + 670.04% 3) Financial expenses: 23H1 financial expenses are-73.08% year-on-year, mainly benefiting from the increase in interest on deposits superimposed by exchange gains; 4) inventory: the company's end-of-23H1 inventory is 3.172 billion yuan, which is-8.12% higher than that at the beginning of H1.
Investment suggestion: considering that the company is the leader of battery foil, excellent cost control ability and pressure on external demand, we estimate that the company's revenue in 23-25 will be 219.64 billion yuan, respectively, and the net profit of home will be 12.03 billion yuan, 15.32 billion yuan, respectively, and the corresponding PE will be 11.5x/9.0x/8.7x, maintaining the "buy" rating.
Risk tips: intensified competition in the industry, raw material price fluctuations, exchange rate fluctuations risk.