Event: the company released its Triple report for 2023. In the first three quarters of 2023, the company achieved revenue of 683 million yuan, an increase of 73.35% over the same period last year, and a net profit of 16 million yuan, an increase of 72.90% over the same period last year.
Both revenue and profit have increased, and expense management has been continuously optimized. The company continues to develop business, continue to obtain new orders, and actively promote order delivery to achieve rapid revenue and profit growth. The company's 2023Q3 realized revenue of 249 million yuan, an increase of 70.53% over the same period last year, and a net profit of 3.032 million yuan, an increase of 1214.66% over the same period last year. The company strengthens its cost management capacity and strengthens its internal cost reduction and efficiency. In the first three quarters of 2023, the rates of sales, management and R & D expenses were 1.96%, 6.13% and 7.07%, respectively, reducing 1.57pct, 3.14pct and 0.98pct compared with the same period last year.
There are enough orders on hand, and the performance is gradually released. The company's business continues to develop and there are plenty of orders on hand. In the first half of 2023, the company successfully delivered "hydrogen boat No. 1", "Sanlong Bay No. 2" and other new energy boats.
In terms of orders, the company's wind power maintenance ship orders continued to grow, and the subsidiary Aolong boat signed 7 30-meter aluminum alloy catamaran wind power maintenance ships. In addition, the company has opened up a new market for official law enforcement boats. In the first half of 2023, the amount of new orders signed by the company and its subsidiaries excluding tax was 1.781 billion yuan, a record high; as of June 30, 2023, orders in hand of the company and subsidiaries did not include tax of 2.557 billion yuan. In October 2023, the company signed a 251 million yuan construction contract with Jiuzhou Marine Industry Co., Ltd., which accounts for 36.85% of the company's 2022 revenue. The company pre-won the bid amount of 77.66 million yuan of Zhejiang Ocean and Fisheries Law Enforcement Corps law enforcement boat construction project (600t fishery administration ship project), which accounted for 11.41% of the company's 2022 revenue. With the gradual delivery of the company's orders, it is expected to provide strong support for the company's follow-up performance.
With the large-cycle recovery of the shipbuilding industry, there is a strong demand for official law enforcement ships and tourism and leisure ships. With the overdue service of some ships, superimposed carbon neutralization, sulfur restriction and other policies, the wave of replacement of old ships has begun. The company is expected to benefit from the trend of tight production capacity in the industry as a whole and continue to obtain new orders. In the context of the construction of a maritime power, there is a strong demand for the upgrading and loading of official law enforcement boats. With the recovery of the tourism market, orders for tourism and leisure ships are expected to increase.
The green trend of the shipbuilding industry promotes the development of the company's new energy boat business. With the continuous upgrading of new low-carbon regulations on international ships, the carbon peak, carbon neutralization schedule and roadmap of the shipping industry are gradually clear, domestic incentive policies are increasing, and the new energy boat industry ushered in opportunities for development.
Earnings forecast, valuation and rating: the prosperity of the shipbuilding industry is high, and the company's on-hand orders are expected to gradually release performance.
We maintain the forecast that the return net profit of the company from 2023 to 2025 is 0.61,1.12 and 147 million yuan respectively, and the corresponding EPS is 0.16,0.30,0.39 yuan. Maintain the "overweight" rating.
Risk hints: the risk of changes in the policy environment; market competition aggravates the risk; the delivery of contract orders is not as expected.