Revenue has declined slightly compared with the same period last year, and the operating capital situation has been optimized. Beimo Hi-Tech released its semi-annual report on August 1, 2023. During the reporting period, its revenue was 623 million yuan, down 3.06% from the same period last year; the net profit from its mother was 249 million yuan, an increase of 18.22% over the same period last year; and the net cash flow from operating activities was 30 million yuan, changing from negative to positive, mainly due to better remittances and more VAT rebates in the current period. Basic earnings per share and diluted earnings per share were both 0.75 yuan per share, an increase of 19.05% over the same period last year.

The leading enterprises in the field of military braking are vigorously expanding the civil aviation market in response to the national strategy. In terms of different industries, revenue from military products during the reporting period was 552 million yuan, accounting for 88.58%, down 6.08% from the same period last year, while revenue from civilian products was 71 million yuan, accounting for 11.42%, an increase of 29.16% over the same period last year. 2023 is the middle year of the 14th five-year Plan, during the reporting period, the company actively developed the application of brakes in the civil aviation market and achieved remarkable results, and civil aviation business grew rapidly compared with the same period last year. At the same time, the company is also constantly promoting the production capacity construction of brake disc, wheel and landing gear landing system, focusing on the development of the core main industry, in order to cope with the demand of the military industry in the "second half" of the 14th five-year Plan in the future. Civil aviation business and landing gear business are expected to become an important part of the company's business in the future.

Brake disc (auxiliary) business has become a new growth point, testing and testing business revenue is under short-term pressure, and the advantage of system integration is obvious. Since its inception, the company has been ploughing the field of braking, based on the brake disc (pair), gradually extending to the whole system of aircraft wheel, brake control system and landing gear landing, and developing towards the direction of integration and intelligence. From the perspective of sub-projects, the aircraft brake control system and wheel business achieved 354 million yuan, an increase of 0.09% over the same period last year, and the company's revenue accounted for 56.87%. Its R & D, production and sales are the company's main source of income and profit; the company's civil aviation business permeates faster and develops the market better. Brake (auxiliary) business achieved revenue of 65.6671 million yuan, an increase of 154.01% over the same period last year. Due to the phased adjustment of the downstream customer procurement plan of the subsidiary Jinghanyu, the prosperity of the electronic components testing industry market has changed, and the company's revenue from testing and testing business is 195 million yuan, down 24.62% from the same period last year.

The gross profit margin declined compared with the same period last year, and the small fluctuations in the three fees remained basically stable. 2023H1's gross profit margin was 68.39%, 2.45pct lower than the same period last year, while the net profit margin was 45.51%, an increase of 4.18pct over the same period last year. From the cost point of view, the rate of sales expenses and R & D expenses decreased slightly, and remained basically stable as a whole.

[investment advice]

During the reporting period, the company's position in the industry remained basically unchanged. On this basis, we predict that from 2023 to 2025, the company will achieve an operating income of 1.1264 billion yuan, a net profit of 5.07 million yuan, a corresponding EPS of 1.53 million yuan, and a corresponding PE of 2.13 yuan, respectively, which is twice that of 26-21-18. We believe that the strong demand for domestic substitution and independent control in the civil aviation market is expected to become an important profit growth point for the company in the future.