Event description:
On August 25, 2023, the company released its half-yearly report for 2023. 2023H1, the company achieved an income of 198.9958 million yuan, an increase of 52.17% over the same period last year, a net profit of 39.9301 million yuan, an increase of 33.34% over the same period last year, and a deduction of 34.1223 million yuan for non-net profit, an increase of 53.25% over the same period last year.
Event comments:
The industrial Internet and intelligent transportation industry sectors ushered in a high growth, and the stock market and core market grew steadily. 2023H1, the company's smart energy, industrial Internet, intelligent transportation, smart city and other industries achieved revenue of 65 million yuan, 57.05 million yuan, 38.75 million yuan, 14.32 million yuan and 20.4 million yuan respectively. Among them, the industrial Internet and intelligent transportation industry sectors were + 320.62% and 122.71% respectively compared with the same period last year.
In terms of product structure, the company has initially developed from a single communications product provider to a scene-based software and hardware product solution provider. 2023H1, the company's solution achieved revenue of 34.09 million yuan, accounting for 17.1% of the company's operating revenue. In addition, the company still focuses on industrial switching products, with operating income of 137.45 million yuan, 15.81 million yuan and 6.3 million yuan respectively for industrial switching products, industrial gateway products and industrial wireless products. Among them, industrial switching products and industrial gateway products were + 37.34% and 22.60% respectively compared with the same period last year.
Overseas market expansion has achieved results. The company speeds up the layout and expansion of overseas market channels, adopts the mode of combining direct sales with agent distribution, and tries its best to open up new sales channels. 2023H1, the company's overseas market business achieved business income of 23.85 million yuan, a year-on-year increase of 105.61%, product sales revenue in Germany, Italy, Spain, the United Kingdom and other countries and regions to achieve steady growth.
Profit forecast, valuation analysis and investment suggestions: the net profit of the company from 2023 to 2025 is expected to return to the parent company 1.37 million yuan, an increase of 42.3%, 36.9%, 34.7%, corresponding to EPS 2.493.36 yuan, PE is 31-22-17, based on the significant increase in the proportion of revenue from the company's software and hardware solutions, the transformation to high-growth business, and the good momentum of overseas expansion. For the first time, it covers giving a "buy-A" rating.
Risk hints: the risk of iterative technology upgrading; the risk of loss of technical personnel; the risk of macroeconomic fluctuations