occurrences

The company released its 24-year report. In the first half of the year, it achieved revenue of 10.33 billion yuan, net profit of -6.7% YoY, -22.58% YoY, net profit less than 0.236 billion yuan, 47.5% YoY, of which Q2 achieved revenue of 5.899 billion yuan, -2.56% YoY, net profit to mother of 0.225 billion yuan, YoY -6.13%, net profit not attributable to mother 0.148 billion yuan, YoY- 51.56%

reviews

The company achieved steel structure production of 2.106 million tons in the first half of the year, +0.12% over the same period. The price of a ton measured by production was 4,743 yuan, down 303 yuan from the previous year, and gross profit per ton was +8 yuan to 418 yuan; in the first half of the year, production and sales were under pressure. On the one hand, the company intelligently transformed production equipment and equipment on the other hand, due to pressure on downstream pan-real estate and high-end manufacturing demand.

In terms of gross margin, the company's gross margin was 10.7% in the first half of the year, +0.06pct, Q2's gross profit margin of 10.8%, and -1.01pct. In terms of cost ratio, the company's sales/management/ R&D/ finance expenses ratio in the first half of the year was 0.55%/1.43%/3.21%/1.48%, +0.03/+0.37/+0.27pct. Among them, the R&D expense ratio increased significantly, mainly due to the increase in R&D investment in intelligent robots in the company's production line. In terms of cash flow, the company's net cash outflow from operating activities in the first half of the year was 0.05 billion yuan. The net inflow for the same period last year was 0.65 billion yuan. The net outflow is expected to be mainly due to the decline in the company's revenue and increased supplier payments.

There was a slight decline in new contracts, and downstream demand was under pressure: the amount of new contracts signed by the company in the first half of the year was 14.356 billion yuan, -4.66% compared with 7.391 billion yuan in a single 2Q contract. We judge that the decline in new orders was mainly due to pressure on demand from downstream pan-real estate and high-end manufacturing.

Profit forecast: We expect the company's revenue for 24-25 to be 22.91 billion, 24.81 billion, -2.7%, and +8.3%, respectively. Net profit to mother for 24-25 is 0.93 billion, 1.2 billion, -21.1%, and +28.9%, respectively; the corresponding PE for 24-25 is 9X and 7X, respectively.

Risk warning:

Downstream demand declined more than expected, and industry competition increased risks.