Event description
Penghui Energy released its mid-2023 report that 2023H1 achieved 4.375 billion yuan in revenue, 7.62% last year, 251 million yuan in net profit, up 3.05%, and 235 million yuan in non-net profit, down 5.43% from the same period last year. In terms of 2023Q2, the company achieved revenue of 1.879 billion yuan, down 21.79% from the same period last year and 24.69% from the previous year; the net profit from the parent was 69 million yuan, down 55.10% from the same period last year, down 62.09% from the previous month; and deducting 66 million yuan from non-net profit.
Event comment
Split 2023H1 point of view, the company's overall lithium battery production of 1.725 billion Ah, corresponding to 5.5GWh, sales are expected to be similar. Among them, the proportion of energy storage business has further increased, with 2023H1 reaching 64%, corresponding to an income of 2.8 billion yuan, and expected shipments of 3.5-4GWH; consumer batteries have maintained a steady growth, while power batteries have declined significantly. In terms of profitability, the company's gross profit margin for lithium-ion batteries was 18.19%, an increase in 1.55pct compared with the same period last year, which is expected to be related to the decline in the proportion of power battery business with low gross margin and the decline in battery prices.
From the perspective of splitting 2023Q2, the company's revenue dropped 21.79% month-on-month, and the proportion of energy storage is expected to drop to 50% 55%, corresponding to RMB 9.5-1 billion. One reason is that household savings in Europe is out of inventory, and shipments are expected to decrease by 40% 50% compared with the previous month, which is consistent with the situation of the industry. Second, the large storage and industrial and commercial business is in its infancy, or related to the pace of project confirmation. In terms of profit, the overall gross profit margin of 2023Q2 is 17.3%, the month-on-month decline of 2.7pct, the decline in the proportion of energy storage may have an impact, at the same time, the industrial chain also has a certain price reduction pressure. In addition, 2023Q2 company provides for asset impairment loss of 19 million yuan, credit impairment loss of 44 million yuan; exchange leads to financial expenses of-8 million yuan, but fair value change loss of 17 million yuan, the overall impact of exchange is not significant.
Looking ahead, the household storage business is expected to gradually recover after destocking and adjustment, and will also increase the market layout in South Africa and the United States in the future; at the same time, the company will actively expand domestic markets such as large reserves, industry and commerce, and in terms of industry and commerce, the company has launched a series of Great products, and has been applied in 10MWh projects. In addition, the company has actively promoted its sodium technology, including an increase in the energy density of layered oxides to 150Wh/kg and a polyanion cycle life of 6000 times. Taken together, the company is expected to be 850 million yuan in 2023, corresponding to 19 times the PE. Maintain a "buy" rating.
Risk hint
1. The demand for household savings in Europe is lower than expected
2. The competition pattern of household storage in Europe has deteriorated.