2023Q2's single-quarter income level is the highest in recent years. 2023H1 realized operating income of 200 million, up 7.48% from the same period last year; realized net profit of 10 million of shareholders belonging to listed companies, down 58.26% from the same period last year; and realized net profit of shareholders of listed companies after deducting non-recurring profits and losses was 6 million yuan, down 75.02% from the same period last year. On a quarterly basis, 2023Q1 and Q2 achieved revenues of 85 million yuan and 115 million yuan respectively, down 17.59 percent and 38.63 percent respectively from the same period last year, and net profits of 7 million yuan and 3 million yuan, down 55.72 percent and 63.24 percent, respectively. The company's performance in the first half of the year is under pressure, mainly because Wuxi and other new production capacity has just been put into production, and the production capacity has not been fully released, but the conversion of projects under construction brings more depreciation and amortization, which puts pressure on gross profit margin and net profit margin. On a quarterly level, the company's 2023Q2 revenue level of 115 million per quarter is the best in a single quarter in recent years, indicating that the sales end of the company's fastener products has improved significantly. In the follow-up, with the mass production of key projects, the company's Wuxi capacity is expected to be released gradually, and the comprehensive gross profit margin and net profit margin are expected to recover gradually.
Mastering Magna, Tesla, Inc. and BYD and other high-quality customer resources, the release of new capacity is guaranteed.
In the field of automotive fasteners, the company's main customers include Fuoshikawa Island, Huayu Vision, Garrett, Bosch, Foggia, Magna, Valeo and other domestic and foreign auto parts suppliers; terminal OEM includes Tesla, Inc., Volkswagen, NIO Inc. and BYD and other vehicle manufacturers, including NIO Inc. and BYD to direct suppliers. The company is rich in customer resources, covering the major high-quality first-class auto parts suppliers and vehicle manufacturers at home and abroad, which will effectively ensure the orderly release of the company's new production capacity. In addition, due to the influence of multiple factors such as raw material price inflation and price war among car companies, overseas car companies generally have demands for cost reduction, and many overseas car companies have the demand to switch suppliers. Through in-depth cooperation with Magna and other overseas first-class suppliers, the company is expected to expand overseas market share when overseas vehicle manufacturers switch suppliers with better performance-to-price ratio, so overseas export business is expected to become an important performance growth point of the company.
Military business covers aerospace and satellites, with broad long-term space. The company acquired Chengdu Xinyue CNC Machinery Co., Ltd. at the beginning of 2022, and the current holding proportion is 62.68%. Chengdu New Moon Company's products cover military aircraft parts, civil aircraft parts, aerospace large-scale structural parts and so on. Chengdu Xinyue is good at processing complex structural parts and thin-walled parts, especially for aluminum alloy, titanium alloy, nickel alloy, tungsten alloy, cobalt alloy and other special materials, with unique technological methods and mature technology. skilled technical team and rich manufacturing experience.
According to the company's announcement, Chengdu Crescent currently has sufficient orders, and the previously developed aircraft, space rockets and other projects have been gradually mass produced in the second half of the year, and the company is actively expanding its production capacity to meet the needs of customers. and the satellite field is one of the businesses the company is currently developing. Areas such as aerospace and satellites are expected to be the company's second growth curve with high demand certainty and broad prospects.
[investment advice]
The company is a domestic automotive fastener head enterprise, and forward-looking layout of aerospace and satellite and other fields.
According to the company's latest semi-annual report, we estimate that the company's operating income in 2023 PE 2024 will be $751m in 2025, respectively; the estimated net profit on homing will be $0.81 million, respectively; the net profit on return to the home will be $150 million; the PE will be $1.11 million, respectively; and the company will be given an "overweight" rating as much as that of 35-24-19.