Event: the company released its 2023 semi-annual report on August 22. H1 achieved revenue of 2.451 billion yuan in 23 years, + 43.4% year-on-year, and net profit of 168 million yuan, + 121.2%, compared with the same period last year.
Comments:
The new energy industry has developed rapidly, and its income and profits have achieved high growth. Benefiting from the rapid development of the new energy industry, strong customer demand, gradual mass production of designated projects, and a marked increase in orders, the business of the company's new energy power battery box, precision stamping dies and metal parts for new energy vehicles, energy storage and photovoltaic inverters has steadily improved, with year-on-year growth in business income; the company has improved management efficiency and continued to effectively promote cost reduction measures, achieving substantial growth in performance. In 2023, H1 Company realized operating income of 2.45 billion yuan (year-on-year + 43%), net profit of 168 million yuan (year-on-year + 121%), gross profit margin of 18.0% (year-on-year + 1.1pct) and net profit rate of 6.9% (year-on-year + 2.5pct). In 2023, Q2 achieved operating income of 1.3 billion yuan (year-on-year + 36%), net profit of 86 million yuan (year-on-year + 106%), gross profit margin of 17.5% (year-on-year + 0.4pct) and net profit rate of 6.6% (year-on-year + 2.2pct).
The newly designated amount in the first half of 2023 is about 28 billion yuan. With the strength of leading technology research and development, rich production experience and excellent quality control system, the company has established good cooperative relations with customers such as GAC Eian, Geely Automobile, BYD, Ningde Times, Yiwei LiNeng, Huawei and Xinnengan. From January to April 2023, the company expects the total amount of newly designated projects to be 149,000-15.1 billion yuan, with a project cycle of 1-7 years. From May to June, the company expects the total amount of newly designated projects to be 1.31-13.4 billion yuan, of which the projects with a project cycle of 1-8 years and 10-12 years are estimated to be 11.1 billion yuan and 2.3 billion yuan respectively.
It is proposed to raise an additional 1.8 billion yuan to increase the size of the new energy business. In June, the company issued a stock offering prospectus (registration draft) to specific targets, intending to raise 1.84 billion yuan for the construction projects of energy storage, photovoltaic inverters and power battery box production bases in Dongguan, Guangzhou, Changshu and Yibin. After the completion of the project, Dongguan can achieve an annual production capacity of 540,000 sets of power battery boxes, 150000 sets of commercial inverters and 200000 sets of household inverters; Guangzhou can achieve an annual production capacity of 200000 sets of car body structural components and 225,000 sets of power battery boxes; Changshu and Yibin can achieve an annual production capacity of 34,595 million sets of power boxes.
We believe that this increase will help the company to expand its product market share and further improve its position in the industry.
Profit forecast: the company specializes in precision stamping die and metal structure R & D, production and sales, with advanced mold manufacturing technology and precision stamping, welding, sheet metal and other metal manufacturing technology, is expected to benefit from the high-profile demeanor of the new energy industry to achieve rapid performance growth. We estimate that the return net profit of the company from 2023 to 2025 is 5.11,8.17 and 1.18 billion yuan, and the corresponding PE is 14,9 and 6 times respectively.
Risk factors: raw material price fluctuation, exchange rate fluctuation, customer development is not as expected, supporting model sales are not as expected, new product research and development is not as expected.