Q3 revenue growth has slowed down due to factors such as order confirmation, and Q4 is expected to accelerate.
23Q1-Q3 achieved revenue of 400 million yuan, + 21.06% year-on-year, and net profit of 54 million yuan, + 9.53% compared with the same period last year. Company 23Q3 achieved revenue of 132 million yuan, year-on-year + 9.04%, month-on-month-20.96%, return to the mother net profit of 18 million yuan, year-on-year + 11.07%, month-on-month-21.74%. We estimate that the net profit of homing in 23-25 years is 0.99 billion RMB, corresponding to the corresponding PE in 23-25 years is twice as much as that in 31-21-16.
The average PE of comparable companies over the past 23 years is 29 times. Considering the scarcity of the company as the first listed company for the prevention and control of heavy metal pollution in China and the broad market for the prevention and control of non-ferrous heavy metal pollution, the company is given 35 times PE in 23 years, corresponding to the target price of 36.75 yuan (the previous value is 36.75 yuan), maintaining the "buy" rating.
23Q1-Q3 gross profit margin / net profit margin decreased slightly compared with the same period last year, while the proportion of investment income increased.
23Q1-Q3 gross profit margin 32.61%, year-on-year-0.28pp, net profit 14.53%, year-on-year-1.57pp.
23Q3's gross profit margin is 31.10%, year-on-year-1.24pp, month-on-month-3.96pp, net profit 14.56%, year-on-year + 0.33pp, month-on-month-0.10pp. The sales / management / R & D / financial expense rate of 23Q1-Q3 company is 5.90%, 8.05%, 6.29%, 0.03%, respectively, compared with the same period last year + 0.39/+2.41/+0.77/+0.09pp, and the total expense rate of the period is 20.21%, which is + 3.66pp. 23Q1-Q3 's net investment income accounts for 3.02%, compared with the same period last year + 2.19pp.
The company's orders are good, and we expect 23Q4 and 24-year revenue to increase. The company focuses on the prevention and control of heavy metal pollution in the non-ferrous metallurgical industry. The revenue growth in the first three quarters is mainly due to the increase in acceptance projects and revenue growth of comprehensive solutions for heavy metal pollution prevention and control. The order growth of the company is good. As of September 23, the copper foil new material water treatment project undertaken by the company has been basically completed, the power battery recycling wastewater treatment project has been completed, and the lithium iron phosphate water treatment project is under installation and commissioning. Among the company's three major businesses (solutions, pharmaceuticals and operations), the solution belongs to incremental business, and the increase in revenue is conducive to the increase in revenue from subsequent operations and stocks such as pharmaceuticals. In addition, from a quarterly point of view, the company's Q4 revenue accounts for 40% of the annual revenue in 21 / 22, respectively. 43% of the company's revenue Q4 is the peak of the company's revenue recognition, superimposed by "increase and rollover". We expect the company's Q4 and 24 years of revenue to increase.
Technological advantages are expected to help the company increase its share and fully coordinate with Zijin Mining Group upstream and downstream traditional treatment technologies (lime neutralization, vulcanization, etc.) to occupy the mainstream of the current dirty acid and wastewater market.
On the basis of absorbing the technology of Academician Chai Liyuan of Central South University, and relying on its own R & D advantages, the bio-pharmaceutical method developed by the company can deal with more heavy metals, produce less waste residue, is more environmentally friendly, and can achieve higher economy through resource utilization, which is expected to help the company to increase its market share in the decentralized heavy metal pollution treatment industry. The company works closely with Zijin Mining Group, the second largest shareholder, and Zijin Mining Group accounts for 27.0% of 2023H1's revenue. The company invested in Zijin Mining Group's Zijin pharmaceutical extension metal extractant, mineral processing pharmaceutical and other business. In the future, the company is expected to rely on Zijin Mining Group to achieve coordinated upstream and downstream development.
Risk hint: the market promotion of new technology is unfavorable, the balance of accounts receivable is large, and the customer concentration is high.