Event: in the first half of 2023, the company achieved revenue of 1.981 billion yuan, an increase of 57.53% over the same period last year; net profit of 298 million yuan, an increase of 30.04%; net profit of 275 million yuan, up 25.10% over the same period last year; basic earnings per share of 2.46 yuan per share, an increase of 15.90% over the same period last year; weighted average return on net assets of 7.43%, a decrease of 4.46pct over the same period last year.
On a quarterly basis, 2023Q2 achieved revenue of 1.038 billion yuan, an increase of 60.55% over the same period last year, an increase of 9.98% over the same period last year, and a net profit of 155 million yuan, an increase of 27.09% over the same period last year and 7.95% over the same period last year.
In terms of products, in the first half of 2023, revenue from aerospace forgings reached 679 million yuan, an increase of 20.03 percent over the same period last year, with a gross profit margin of 47.95 percent, an increase of 3.50pct over the same period last year. The revenue of petrochemical forgings reached 490 million yuan, an increase of 69.30% over the same period last year, with a gross profit margin of 17.75%, a decrease of 0.31pct over the same period last year. The revenue of electric forgings reached 479 million yuan, an increase of 297.04% over the same period last year, with a gross profit margin of 18.68%, an increase of 24.89 pct over the same period last year.
In the first half of 2023, the company's overall gross profit margin was 26.72%, a year-on-year decrease of 0.26 pct; net profit margin of 15.05%, a year-on-year decrease of 3.18 pct;2023 in the second quarter, a gross profit margin of 27.08%, a year-on-year decrease of 0.64 pct, a month-on-month increase of 0.75 pct; net margin of 14.92%, a year-on-year decrease of 3.93 pct, and a decrease of 0.28 pct.
In the first half of 2023, the company's total expenses during the period were 145 million yuan, an increase of 48.46 percent over the same period last year. Expenses during the period accounted for 7.34 percent of operating income, a decrease of 0.45 pct over the same period last year. Among them, R & D expenses were 89 million yuan, up 69.84 percent from the same period last year, accounting for 4.51 percent of operating revenue, and revenue accounted for 0.33 pct year-on-year increase.
In the first half of 2023, the net cash flow generated by the company's operating activities was-92 million yuan, 2022H1 was-174 million yuan, 2023H1 increased by 82 million yuan over the same period last year; by the end of the first half of 2023, accounts receivable was 1.39 billion yuan, an increase of 68.93% over the beginning of the year; the turnover of accounts receivable was 1.79 times, an increase of 0.15 times over the same period last year; inventory was 953 million yuan, an increase of 6.14% over the beginning of the year The inventory turnover rate was 1.57 times, a decrease of 0.10 times compared with the same period last year.
In the first half of 2023, corporate taxes and surcharges totaled 7.2404 million yuan, an increase of 456.42 percent over the same period last year, mainly due to the increase in urban construction tax and education fees; other income was 7.3632 million yuan, down 81.69 percent from the same period last year, mainly due to the reduction of products exempted from VAT and government subsidies. In the first half of 2023, the company's credit impairment loss was-39.2371 million yuan (the loss was listed with the "-" sign), an increase of 155.36% over the same period last year, mainly due to an increase in accounts receivable, of which 2023Q2 credit impairment loss was-24.2529 million yuan, an increase of 1907.52% over the same period last year and 61.86% month-on-month growth. The impairment loss of the company's assets was-2938.92, an increase of 591.39% over the same period last year, mainly due to the increase in the age of inventory, of which the 2023Q2 credit impairment loss was-27.8114 million yuan, an increase of 2440.32% over the same period last year and 1662.78% from the previous year.
We adjust our profit forecast according to the latest earnings report, and we expect the company's 2023-2025 net profit to be 624 yuan, 8.01 billion yuan, respectively, and EPS is 5.15 yuan, 6.61 yuan, 8.30 yuan per share, corresponding to the closing price of PE on September 14, which is 19.0, 14.8, 11.8 times, maintaining the "overweight" rating.
Risk hint: the price of raw materials has risen, the market competition has intensified, and the growth of the civilian products market has fallen short of expectations.