The company's 23H1 revenue was 260 million yuan (+31.2% year over year), net profit due to mother was 0.29 million yuan (loss for the same period last year), and net profit not attributable to mother was 0.27 million yuan (loss for the same period last year). The company's business is recovering.
In the long run, we are optimistic that the company will continue to develop in the two business categories of intelligent equipment and auto parts based on excellent R&D and production capabilities.
The company's business is in a recovery period. (1) Revenue: On a quarterly basis, in 23Q1/23Q2, the company's revenue was 120/150 million yuan, +20.0%/+41.8% year-on-year; net profit to mother was 0.13/016 million yuan. The company was affected by the local epidemic in the same period last year, and the base figure was low. By business, the 23H1 intelligent equipment business/auto parts business revenue was 150/120 million yuan, +52.1%/+12.3% year-on-year. With the settlement of ongoing orders, the company's intelligent equipment business achieved rapid growth. (2) Profitability: The gross margin of the 23H1 company was 24.9% (+10.3pcts), and the gross margin returned to the level of 2021. 23H1's sales/management/ R&D/ finance expense ratio was 1.6%/7.3%/6.7%/-0.7%, +0.0/-3.5/-1.4/+0.4pcts year-on-year.
Intelligent equipment develops new products, the auto zero business has improved marginally, and the carbon dioxide air conditioning pipeline business continues to advance.
(1) Intelligent equipment business: According to the company's interim report, 23H1 signed a new order of 130 million yuan. The order is mainly an assembly and testing production line for NEV electronics. In addition, the company is actively deploying new standardized products such as loading robots. Currently, loading robots have achieved stable operation at Hunan cigarette factories and tobacco logistics companies.
(2) Auto parts business: Products mainly include core engine parts products such as fuel dispensers, fuel pipes, and hard cooling water pipes. With the recovery of the automotive industry and the iteration of products that meet national 6b standards, the business is expected to experience marginal improvement in the second half of the year. (3) Carbon dioxide high pressure pipeline business: The company's carbon dioxide high pressure pipeline system has passed the test certification of Volkswagen MEB and has entered the pre-mass production and supply stage.
It is expected to open up more car company customers in the future. In addition, the company is also actively developing valve products for heat pump systems.
Risk factors: the risk that the intelligent equipment business will be delivered faster than expected; the risk that the carbon dioxide air conditioning pipeline business will develop at a lower rate than expected; the risk that the market acceptance of the company's new products will fall short of expectations.
Investment advice: Considering that the company's business is still recovering, there is uncertainty about the market acceptance of the company's new products, and combined with the interim report data, we lowered the company's 2023/24 net profit forecast to 0.88/140 million yuan (the original forecast was 16/230 million yuan), adding 180 million yuan to the net profit forecast for 2025. The PE corresponding to the current stock price is 44/29/23 times. In the long run, we are optimistic that the company will continue to develop in the two business categories of intelligent equipment and auto parts based on excellent R&D and production capabilities.