Events:
On October 21, 2023, Saite released its quarterly report for the third quarter of 2023: in the first three quarters of 2023, the company achieved operating income of 5.92 yuan, + 28.75% compared with the same period last year, and net profit of 79 million yuan, + 95.26% over the same period last year. The weighted average return on net assets was 8.12%, an increase of 3.68 percentage points over the same period last year. The gross profit margin of sales was 33.61%, an increase of 8.40% over the same period last year, and the net profit margin of sales was 13.38%, an increase of 4.55% over the same period last year.
Among them, Q3 achieved revenue of 238 million yuan in 2023, + 54.29% year-on-year, + 18.19% month-on-month; realized net profit of 38 million yuan, + 105.54%, + 24.90%; and the average rate of return on net assets was 3.78%, an increase of 1.77% over the same period last year. The gross profit margin on sales was 35.92%, an increase of 8.42% over the same period last year and 2.14% over the same period last year; the net profit margin on sales was 15.84%, an increase of 3.95% over the same period last year, and an increase of 0.85% over the previous year.
Main points of investment:
With the increase of sales volume, the superimposed cost decreased, and the net profit of Q3 increased higher than the same period last year.
In 2023, Q3 achieved revenue of 238 million yuan, year-on-year + 54.29%, month-on-month + 18.19%; net profit returned to the mother was 38 million yuan, + 105.54%, + 24.90%, + 20 million yuan, and + 8 million yuan. Among them, Q3 realized gross profit of 85 million yuan, month-on-month ratio of + 17 million yuan; financial expenses of 3 million yuan, month-on-month ratio of + 11 million yuan; research and development expenses of 11 million yuan, month-on-month ratio of + 2 million yuan; fair value change profit and loss of 3 million yuan, month-on-month ratio of + 0.06 billion yuan. The company's gross profit increased month-on-month, or an increase in sales revenue from vacuum insulation panels (VIP) and a decrease in the price of liquefied natural gas; an increase in financial expenses or a decrease in exchange gains; and an increase in profit or loss in changes in fair value or an increase in transactional financial assets. Looking forward to the fourth quarter, with downstream refrigerators, freezers and other household appliances about to enter the peak season of stock, is expected to continue to drive vacuum insulation board demand, optimistic about the company's annual performance growth.
In terms of period expenses, 2023Q3's sales / management / financial expense rates are 5.12%, 5.36%, 1.44%, respectively, year-on-year-0.65/-1.83/+4.98pct, month-on-month-0.43/-0.37/+5.21pct. 2023Q3, the net cash flow generated by the company's operating activities reached 13 million yuan,-67.25% compared with the same period last year, mainly due to the increase in cash paid for goods and services and various taxes and fees paid.
The improvement of EU energy efficiency standards drives the demand for insulation plates, and the company's convertible bond project promotes growth.
In March 2019, the European Commission updated the EU energy efficiency label, which came into effect on March 1, 2021. The new energy efficiency label is divided into seven grades A to G, the original highest grade products (Atoll plus) can only reach the new energy efficiency level D, and very few products can reach the energy efficiency level C. at the same time, the refrigerator freezers of grade G and F will be withdrawn from the market on April 1, 2021 and April 1, 2024, respectively. The improvement of energy efficiency standards of refrigerators in the European Union and other countries and regions has led to the continuous growth of the demand of global refrigerator enterprises for vacuum insulation plates. At the same time, refrigerator and cabinet integration is becoming a new trend of domestic consumption because of its simple aesthetics and high space utilization. Major refrigerator enterprises increase the market volume of ultra-thin embedded refrigerators and other high-end products, thus increasing the purchase of vacuum insulation plates.
The company issued convertible bonds to non-specific targets to raise 442 million yuan and was approved by the Securities Regulatory Commission and was successfully listed in October 2023. The funds raised will be used for the set vacuum industry manufacturing base (Phase I). After the project is completed and reached production, the company will increase the vacuum insulation board production capacity by 5 million square meters, further improve the production scale and production efficiency, and enhance product quality and performance. In addition, the company's layout of metal VIP technology and product development is aimed at creating high-temperature VIP products, expanding new applications and tapping new customers.
Layout the field of vacuum glass and expand the application depth of vacuum technology in the company.
Since its inception, the company has focused on optimizing the thermal insulation performance of vacuum insulation plates, reducing production costs of various parts, improving large-scale mass production, and in-depth research and development of new products for the application of vacuum technology. Through more than ten years of dedicated research and development and independent innovation, the company has mastered the core technology of vacuum insulation plate core material, barrier film, adsorbent production and performance testing technology, and developed vacuum glass manufacturing technology. it promotes the development of domestic vacuum insulation material industry. On this basis, the wholly-owned subsidiary Weiaiji plans to invest in the vacuum glass construction project with an annual output of 2 million square meters. At present, the company has completed the verification of the vacuum glass mass production process, and is expected to form a better complementary relationship with the existing vacuum insulation products in the future. to create a new growth point for performance.
Profit Forecast and Investment rating Company as the domestic leader in vacuum insulation materials, the core product vacuum insulation board benefits from the improvement of EU refrigerator energy efficiency standards, along with the convertible bond investment of 5 million square meters vacuum insulation board project gradually put into production, the company's revenue scale is expected to reach a new level.
In addition, the company increases the field of metal VIP and vacuum glass to expand the application depth of vacuum technology and is optimistic about the long-term development of the company. It is estimated that the company's net profit from 2023 to 2025 will be 1.11,1.83 and 240 million yuan respectively, corresponding to 31,19 and 14 times PE respectively, covering for the first time and giving a "buy" rating.
Risk prompts the landing of policies, the progress of new capacity construction is not up to expectations, the contribution of new capacity is not up to expectations, raw material prices fluctuate, environmental protection policies change, and the economy declines substantially.