The company has been engaged in the metal pressure vessel industry for many years. At present, the company is mainly engaged in the research and development, design, manufacture, sales and related technical services of metal pressure vessels, and has formed a series of non-standard pressure vessels mainly composed of heat exchange pressure vessels, reaction pressure vessels, storage pressure vessels, separation pressure vessels and offshore oil and gas device modules. the products are mainly used in oil refining and petrochemical, basic chemical, nuclear and solar power generation, high-tech ships and marine engineering and other fields. In the first half of 2023, the company's operating income reached 548 million yuan, down 2.56% from the same period last year; the net profit belonging to shareholders of listed companies was 102 million yuan, down 20.84% from the same period last year. The decrease in operating revenue over the same period last year was mainly due to a slight decrease in the number of completed products delivered by the company due to insufficient existing production capacity, while the decrease in net profit was mainly due to the low proportion of sales of high-throughput heat exchangers with higher gross profit margin and the increase in material costs, and the company's gross profit margin decreased significantly compared with the same period last year.
The operating income of heat exchanger pressure vessels accounts for a relatively high proportion, and the demand for high-flux heat exchangers is expected to further increase.
Heat exchanger pressure vessel, also known as heat exchanger, is a kind of equipment for heat exchange of fluids at different temperatures. its main functions include heat conduction, heat exchange, heat recovery and security. It is the company's main product. Heat exchanger pressure vessels accounted for 58.13% of the company's operating income in the first half of 2023. The high-flux heat exchanger produced by the company uses self-produced high-flux heat exchanger tubes. compared with ordinary heat exchanger tubes, there is a very thin porous layer on the inner or outer surface of high-flux heat exchanger tubes. the existence of these porous layers can significantly enhance the boiling heat transfer coefficient and improve the heat transfer efficiency.
In the industrial application, the use of high-flux heat exchanger tube can reduce the shell size and weight of the heat exchanger, which not only reduces the operating cost and energy consumption of the heat exchanger, but also saves the space of pipeline, control, foundation and plot planning.
The order on hand is in good condition. In the first half of 2023, the company added about 850 million yuan in new sales orders, an increase of about 28.69 percent over the same period last year, while existing orders totaled 1.76 billion yuan, an increase of 20.88 percent over the end of 2022.
At present, the company has an existing production capacity of about 17000 tons and an annual production capacity of 12000 tons. The construction project of high-efficiency heat exchanger is under construction and is expected to be completed and gradually released in mid-2024. The continuous growth of the company's on-hand orders and the commissioning of new production capacity in the future will help to improve the company's future business performance and comprehensive competitiveness.
Investment advice and rating: from 2023 to 2025, the company's operating income is estimated to be 1.230.57 billion yuan, and the net profit returned to its mother is 2.4 million yuan, respectively, and the corresponding EPS is 3.32 million yuan, 4.4 yuan respectively. The company has been deeply engaged in the metal pressure vessel industry for many years, and in the future, with the growth of on-hand orders and the commissioning of new production capacity, profitability is expected to be further improved, giving the company an "overweight" rating.
Risk hints: the risk that the construction progress of the project under construction is not as expected; the risk that the demand for all kinds of metal pressure vessels of the company is not as expected; the risk of raw material supply and market price fluctuations; the risk of performance forecast and valuation judgment that are not as expected.