The company achieved a net profit of 81 million yuan in the first half of the year, a decline of 26.09% compared with the same period last year. The company released a 23-year mid-year report. In the first half of the year, the company realized income / return net profit of 822 million yuan, which was + 3.98% and 26.09% compared with the same period last year, and realized deduction of non-return net profit of 71 million yuan, a year-on-year decline of 25.57%, of which Q2 realized income / return net profit of 444,048 million yuan in a single quarter. Compared with the same period last year, the net profit is 41 million yuan, which is-4.90% compared with the same period last year, deducting 41 million yuan from the same period last year.
The month-on-month recovery of clean air business is obvious, and new areas continue to be opened up.
1) Clean air: in the first half of the year, the company's "clean air" business achieved revenue of 535 million yuan, an increase of 10.70% over the same period last year. Q2 is expected to achieve revenue of 301 million yuan in a single quarter, an increase of 28.51% over the previous quarter. Among them, the revenue of purification equipment / air filter paper increased by 37.36% and 18.41% respectively, mainly driven by the growth of oil filter products. 2) High-efficiency and energy-saving: the income of the high-efficiency and energy-saving sector reached 269 million yuan in the first half of the year, down 5.0% from the same period last year. Q2 is expected to achieve 136 million yuan in a single quarter, an increase of 2.61% over the previous quarter, of which the income of micro-fiberglass cotton products increased by 11.92% compared with the previous month. The newly developed green building energy-saving materials bring new growth points.
Q2 gross profit margin increased month on month, expense rate decreased compared with the same period last year.
In the first half of the year, the company's gross profit margin was 24.12%, down 4.92pct from the same period last year, of which Q2 single-quarter gross profit margin was 25.20%, down 1.06pct from the same period last year, and Q1 increased 2.36pct compared with Q1. It is expected that the increase in capacity utilization led to a decrease in unit cost allocation, and the gross profit margin of micro-glass fiber products increased 4.44pct compared with the previous month. The overall expense rate of the company's Q2 was 13.4%, which decreased by 2pct compared with the same period last year, in which the management / R & D / financial expense rate was-0.1/-2.6/+0.7pct respectively compared with the same period last year. The decrease in the management expense rate was mainly due to the reduction of equity incentive fees, and the decrease in the financial expense rate was due to the increase in the amount of interest expense of the company's convertible bonds compared with the same period last year. In the end, Q2 achieved a net interest rate of 11.93%, a slight drop in 0.2pct compared with the same period last year.
It is proposed to sell distant environment, coordinate development and strengthen empowerment.
The company plans to sell its 70 per cent stake in Yuanyuan to Manhumer Singapore Holdings and sign a forward "option purchase agreement". After the transaction is completed, Yuanyuan will no longer be included in the company's consolidated statements. Manhumer Group is the world's leading provider of filtration technology solutions. Through this transaction, the company is committed to promoting its material advantages to more global users, as well as expanding the company's layout in the field of new energy vehicles. After the completion of the transaction, Zaisheng and Manhumer Group will jointly devote themselves to the innovative development of clean air filtration products and expand the application field of distant environment. Strengthen coordination in the aspects of material guarantee, brand complementarity, technology resource sharing and market segmentation positioning.
Medium-and long-term growth is still worth looking forward to, maintaining the "buy" rating
We believe that the company's "clean air" and "energy efficiency" demand space is still large, medium-and long-term growth can still be expected. In view of the decline in the company's second-quarter profit, the 23-25 net profit forecast for 23-25 is reduced to 257,316 million yuan (the previous value is 2.11 prime 267,317 million yuan), giving the company 30 times PE for 23 years, with a target price of 6.00 yuan, maintaining the "buy" rating.
Risk tips: demand release, capacity landing is not as expected, raw material prices rise, and so on.