Event: the company released a semi-annual report that 23H1 realized operating income of 1.12 billion yuan, an increase of 12.7% over the same period last year; realized net profit of 50 million yuan, from negative to positive, with a net interest rate of 4.4%; and realized deduction of 40 million yuan of non-return net profit, from negative to positive, deducting 3.9% of non-return net interest. In a single quarter, 23Q2 realized operating income of 730 million yuan, an increase of 13.3% over the same period last year; realized net profit of 30 million yuan, from negative to positive, with a net interest rate of 4.6%; and realized deduction of 30 million yuan of non-return net profit, from negative to positive, deducting 4.5% of non-return net profit. The net cash flow from operating activities changed from negative to positive, mainly due to the increase in sales and the increase in rebates.
23H1's performance changed from loss to profit, mainly due to the significant increase in order bookings and shipments of ①.
② company's production base to achieve a gradual increase in production capacity, while strengthening cost control to promote the company to reduce costs and increase efficiency.
The price of ③ bulk raw materials has declined compared with the same period last year, and the gross profit margin of the company's main products has rebounded from the same period last year.
23H1's comprehensive gross profit margin is 26.6%, with an increase of 5.0pct. The rate of expenses during the period is 18.7%, which is the same as minus 1.1pct. Among them, the sales / management / R & D / financial expense rate is 11.4%, 4.4%, 2.7%, 0.1%, respectively, a year-on-year change-0.8pct/-0.3pct/-0.7pct/+0.7pct. The 23Q2 comprehensive gross profit margin is 26.1%, with an increase of 5.4pct; the period expense rate is 16.7%, minus 1.3 pct; among them, the sales / management / R & D / financial expense rate is 11.0%, respectively, 3.9%, 1.8%, 0.05%, year-on-year change-0.6pct/+0.3pct/-1.6pct/+0.5pct.
In terms of products, the revenue of steel safety doors / other doors / smart locks is RMB 7.1 million, respectively, with a year-on-year change of-2.76%, 59.37%, 11.09% and 68.33%, 24.46%, 7.21% respectively. From a channel-by-channel point of view, the revenue of engineering channel / dealer engineering channel / dealer retail channel / e-commerce channel respectively realized RMB 4.8 more than 3.0 billion yuan, with an increase of 9.89%, 6.65%, 7.27%, 22.66%, accounting for 46.58%, 28.89%, 22.50%, 2.03%.
Earnings forecast and rating: we expect the company's 24-year net profit to be 286 million yuan (unchanged), and the current closing price is 15.67 times PE. Considering that the company has increased its production capacity in recent years, the strength of the subdivision field has been enhanced, and the leading position of the safety door industry has been continuously consolidated, at the same time, the intelligent lock business has opened a new growth curve, with reference to the comparable company giving 23 years 30 times PE, corresponding to the target price of 13.47 yuan (original target price 11.25 yuan, 23 years 25 times PE,+20%), maintaining a "better than the market" rating.
Risk tips: raw material price rise risk, market competition risk, real estate industry fluctuation risk, dealer management risk.