This report is read as follows:
2023H1 realized deduction of non-home net profit of 58 million yuan, an increase of 61.36% over the same period last year. Liquid-cooled energy storage temperature control business has achieved rapid growth, and product applications have been extended to the semiconductor field to open the performance ceiling.
Main points of investment:
Maintain the "overweight" rating and raise the target price to 63.60 yuan. Benefiting from the rapid growth of energy storage capacity, 2023H1's energy storage temperature control business has reached 249 million yuan. Taking into account the high growth of liquid-cooled energy storage temperature control business, industrial temperature control business to expand lithography machines and other semiconductor applications, maintain 2023-2024 EPS for 1.3220 yuan 2.11 yuan, add 2025 EPS for 2.80 yuan, refer to comparable company average to give the company 2024 30xPE, raise the target price to 63.60 yuan, maintain "overweight" rating.
The demand for temperature control of liquid-cooled energy storage has been released, and the company's performance has achieved rapid growth. The company's 2023H1 realized revenue of 705 million yuan (YoY+75.65%) and non-return net profit of 58 million yuan (YoY+61.36%). According to GGII data, 2023H1 energy storage battery shipments reached 87GWh (YoY+67%), while liquid-cooled permeability reached about 20%, and the demand for energy storage liquid-cooled temperature control equipment increased. Through the advantages of liquid cooling technology accumulated in the field of numerical control equipment, the company transferred to the field of energy storage, and reached cooperation with head enterprises. With the continuous improvement of liquid-cooled permeability, we expect the company's temperature-controlled energy storage business revenue to exceed 500 million yuan (YoY+216%) in 2023.
The product application field extends to the semiconductor industry. The application field of the company's industrial temperature control equipment has been expanded to semiconductor manufacturing and other fields. Liquid constant temperature equipment has been used in lithography machines, and frequency conversion fluorination liquid / water cooler equipment has been introduced for application scenarios such as etching and coating development. At present, we have established a cooperative relationship with head semiconductor customers such as North Huachuang, and the release of demand for highly flexible semiconductor temperature control equipment will enhance the performance ceiling of the company.
The investment in R & D has increased, and the net interest rate is under short-term pressure. 2023H1 invested 37 million yuan (YoY+121.03%) in R & D, and its net interest rate fell slightly to 9.51% (YoY-2.52pct). With the completion of new product development and promotion, the net interest rate is expected to gradually return to the normal level of 12% Mel 15%.
Risk tips: 1) intensified competition affects orders; 2) fluctuations in raw material prices affect gross profit margin.