Event: according to the company's semi-annual report for 2023, H1 Company achieved revenue of 2.146 billion yuan in 2023, an increase of 79.61% over the same period last year, a net profit of 185 million yuan, an increase of 95.91% over the same period last year, and a deduction of 153 million yuan for non-net profit, an increase of 105.59% over the same period last year. From a quarterly point of view, the company's Q2 revenue in 2023 was 1.251 billion yuan, an increase of 67.17% over the same period last year, an increase of 39.71% over the same period last year; the net profit from the home was 153 million yuan, an increase of 84.13% over the same period last year, an increase of 385.26% over the same period last year; and the non-net profit was deducted from 132 million yuan, an increase of 91.08% over the same period last year and 502.93% over the previous year.

Revenue and net profit increased rapidly compared with the same period last year, and orders-on-hand were more abundant: H1 in 23 years, the company's order scale expanded, acceptance items increased, revenue and net profit increased rapidly compared with the same period last year. In 23, the gross profit margin of H1 company was 30.48%, down 3.51pcts from the same period last year; the net profit margin was 8.56%, which increased 1.03pcts compared with the same period last year.

The 23-year Q2 gross profit margin was 30.22%, down 4.00pcts from the same period last year and 0.61 pcts from the previous year; the net profit rate was 12.19%, which increased 1.58pcts and 8.70pcts compared with the same period last year. In terms of expenses, the rates of Q2 sales, management, R & D and financial expenses are 3.70%, 3.84%, 10.09% and 1.39%, respectively, and the year-on-year changes are-3.07/-2.26/-0.96/-1.16pcts. In 23 years, the financial expenses of H1 company decreased by 7340.33% compared with the same period last year, mainly due to the financial discount deduction of financial expenses; the R & D expenses increased by 72.91% over the same period last year, mainly due to the increase in the salary of the company's R & D personnel and R & D materials. The newly signed order of H1 Company in 23 years is about 2.7 billion yuan, and by the end of June 23, the cumulative amount of in-hand orders is about 8.5 billion yuan.

Power battery, photovoltaic business, IPO project contribution income: 23 years H1, the company's power battery business acceptance project increased year on year, achieving revenue of 1.804 billion yuan, an increase of 109.98% over the same period last year. The company's photovoltaic business has won orders from well-known customers such as JinkoSolar Holding Co Ltd, Tianhe Solar Energy, Tongwei shares, Hongyuan Green Energy, Jettel, Zhengtai, Ates, Hesheng Silicon Industry, Xiexin and so on. By the end of August 23, the company's TOPcon laser primary doping equipment has signed a contract of 350GW +. In 23 years H1, the company's initial public offering project has been completed, and the conclusion of the Jiangmen and Jiangsu fund-raising projects has further enhanced the company's production capacity. as of June 30, 2023, the initial public offering project has formed 940 million yuan of merchandise and achieved an income of 290 million yuan.

Benefit from the high prosperity in the field of new energy vehicles, the code capacity will be increased to expand: with the rapid development of the field of new energy vehicles, the power battery industry is in the stage of rapid expansion. According to the company's 2023 additional issue announcement, according to data from the High-tech Industry Research Institute, China's power battery shipments in 2022 were about 480GWh, an increase of more than 100% over the same period last year, and it is expected that China's power battery shipments will reach 1250GWh in 25 years. At the same time, on the basis of the business layout of power batteries and consumer electronics, the company will increase the power storage, photovoltaic and new display track, continue to consolidate and strengthen the product advantage strategy, and further enhance the market share and coverage of the products. By the end of June 2023, the company's on-hand order size is about 8.5 billion yuan, the original production capacity has been difficult to adapt to the pace of development of the company. In order to further improve the company's ability to take orders and disperse business risks, the company plans to raise 1.45 billion yuan for the western laser intelligent equipment manufacturing base project (phase I) and the Himuxing laser intelligence center project, in order to expand the company's production capacity.

Downgrade profit forecast and maintain "overweight" rating: the company focuses on laser and automation equipment production, and its products are mainly concentrated in the power battery industry at this stage. Benefiting from the rapid growth of the power battery industry, leading to an increase in equipment demand, the company's income from power battery equipment has increased continuously. At the same time, the company actively layout energy storage, photovoltaic, new display track, with the company's photovoltaic business layout continues to advance, capacity construction smoothly implemented, the company's long-term growth momentum is more sufficient. It is estimated that the return net profit of the company from 2023 to 2025 is 690 million yuan, 927 million yuan and 1.103 billion yuan respectively, the EPS is 3.42,4.59 yuan and 5.47 yuan respectively, and the PE is 13x, 10x and 8x respectively.

Risk hints: capacity construction is not as expected, market development is not as expected, power battery overcapacity risk, market competition risk.