Event: the company released its annual three-quarter report on October 19th, with revenue of 129 million yuan in the first three quarters of 2023, down 42.29% from the same period last year, and net profit of 2 million yuan, down 95.99% from the same period last year.
Affected by the delivery rhythm, the performance fluctuates in the short term, and the contract debt gradually recovers. In a single quarter, the company's Q3 achieved revenue of 36 million yuan, down 51.44% from the same period last year, and the net profit returned to its mother was-8.5 million yuan. Due to the customer project planning and acceptance rhythm and other factors, resulting in less project delivery acceptance in a single quarter, resulting in greater fluctuations in business performance. However, in terms of contract liabilities, the contract liabilities of the company at the end of 2023Q3 reached 125 million yuan, an increase of 39.8% over the previous month. It is expected that the order and delivery of subsequent projects will gradually return to the normal pace, and the company will benefit from the upward trend of the prosperity of the nuclear industry for a long time.
Business diversification layout, military industry, nuclear fuel plate results are emerging, the second growth curve is gradually clear.
According to the downstream application, the company's application mainly includes nuclear industry, military industry, non-nuclear business and so on. 1) Nuclear industry plate: on the basis of the original business, the company has newly expanded the nuclear fuel plate, and there is also a technical layout in the fields of nuclear power plant, nuclear industry decommissioning and inspection. In 2023, the company made rapid progress in the nuclear fuel sector, helping customers to achieve intelligent and digital production; in addition, according to the company's semi-annual report in 2023, the company in the field of decommissioned robots in the nuclear industry, the research project is in the stage of prototype optimization design and improvement, and can be used for pipeline disassembly operations in low dose rate radiation environment, nuclear facilities decommissioning, patrol inspection, etc. In the field of the new generation reactor, the company is studying a project to develop special pumps, testing instruments and other key components for the new generation reactor loop system to realize the intelligent transportation control of special metal fluids and its key index detection. In the field of nuclear technology applications, the company has developed automatic devices for radionuclide separation and sub-packaging for radionuclide and nuclear drug production. As of 2023H1, the prototype is under test and optimization. 2) military industry plate: the company acquired Tianjin Jiazi Robot Technology Co., Ltd. in the first half of 2023, adding explosion-proof AGV products to the company's special robot products, with the characteristics of radiation resistance, corrosion resistance, explosion-proof, high precision, heavy load, etc., mainly used in nuclear industry, military industry and other special environment.
In addition, in the aspect of military special equipment, we focus on the research and development of intelligent support system, which is mainly used for the production, transportation, storage and logistics support of materials.
Integrating the above business sectors, the company currently has a diversified technology layout in the nuclear industry chain and the military industry, and is expected to gradually expand its volume in the past 24 years. Although revenue from the main business has fluctuated due to the pace of delivery in the first half of the year, we believe that this is both a challenge and an opportunity. At present, in the first three quarters of 2023, the company has made rapid progress in the field of nuclear fuel and military industry, and the company's second growth curve has gradually become clear. And as the company's share in the standard business gradually increases, the seasonal fluctuation of revenue is also expected to be smoothed.
In the long run, the company benefits from the upward trend of the nuclear industry chain. The nuclear industry is a national high-tech strategic industry, which is still in a period of rapid development with the strong support of national policies. The company gradually lays out the whole industry chain of the nuclear industry, and lays out the technology chain around "intelligent technology". The company continues to carry out active layout of new business areas, and business development has made good progress; in terms of R & D investment, the company also continues to increase the promotion of technology and product research and development to enhance the team's customer service capacity in new business areas; at the same time, the capacity expansion project was implemented smoothly as planned.
Investment suggestion: we expect the company to achieve a net profit of 0.9,2.01 and 286 million yuan respectively from 2023 to 2025, corresponding to a PE of 45.53, 20.28 and 14.27 times respectively, maintaining a "recommended" rating.
Risk hint: project delivery is less than expected risk, product research and development is less than expected risk, industry competition aggravates risk