The company has released three quarterly reports and its performance is growing rapidly. In the first three quarters of 2023, the company achieved revenue of 592 million yuan (+ 28.75%), net profit of 79 million yuan (+ 95.26%), and non-return net profit of 81 million yuan (+ 125.08%). In the third quarter, the company realized revenue of 238 million yuan (+ 54.29%), net profit of 38 million yuan (+ 105.54%), and net profit of 36 million yuan (+ 130.08%).
Strong downstream demand and falling raw material prices contributed to the high performance of the company. Thanks to the improvement of energy consumption standards of refrigerators in developed countries and regions such as the European Union, backward energy efficiency products have been gradually replaced by high energy efficiency products, and demand for products such as vacuum insulation plates has rebounded, and revenue increased by 28.75% in the first three quarters. The company's profitability has improved significantly: the company's gross profit margin was 33.61% in the first three quarters of 2023, a year-on-year increase in 8.40pct. The increase in gross profit margin is mainly due to the marked decline in the price of raw materials such as natural gas compared with the same period so far this year, and the company's lower cost and higher profit margin.
The utilization rate of production capacity is full, and convertible bonds are issued to speed up production capacity construction. With the increase in the production of high-end products such as thin-walled refrigerators and embedded kitchen integrated refrigerators by major refrigerator enterprises, the company's orders for vacuum insulation plates and other products are relatively saturated. In October, the company issued convertible bonds to raise 442 million yuan to build an annual production capacity of 5 million square meters of vacuum insulated panels in Anhui.
Looking forward to the company's vacuum glass business landing. In the specific application, the vacuum glass and the vacuum insulation board of the company's main products at the present stage have the characteristics of certain complementarity and coincidence with downstream customers, which can produce a better synergistic effect. The vacuum glass production test line independently developed and designed by the company has started the pilot test process to verify the vacuum glass mass production process.
Investment suggestion: since its establishment, the company's main business is the sales of vacuum insulation plates and incubators, with the advantages of brand, customer, R & D and production capacity. With the improvement of the demand for high-efficiency products in downstream refrigerator and other industries and the completion of the company's production capacity construction, the company's business is expected to maintain rapid growth. In addition, the company increases the research and development investment of vacuum glass, which has a good synergistic effect with the company's existing products. It is estimated that the revenue of the company from 2023 to 2025 is 8.42,11.50 and 1.557 billion yuan respectively, the net profit of returning mother is 1.30,1.60 and 222 million yuan respectively, and the corresponding PE is 26.16,21.21,15.30 times respectively. Cover for the first time, giving a "buy" rating.
Risk tips: downstream demand weakens, vacuum glass project research and development is not as expected, competition intensifies.