Event: according to the company's semi-annual report of 2023, the company achieved an operating income of 3.287 billion yuan in the first half of 2023, an increase of 21.51% over the same period last year, a return net profit of 390 million yuan, an increase of 73.70%, and a non-return net profit of 237 million yuan, an increase of 35.79% over the same period last year. Due to the implementation of the company's stock option incentive plan in 2022 and the issuance of convertible bonds in 2022, the related stock option fees and interest fees on convertible bonds totaled 27 million yuan in the current period. after excluding the influence of the above option incentives and interest fees on convertible bonds, the company achieved 261 million yuan in non-parent net profit in the first half of 2023, an increase of 47.66% over the same period last year.
Many businesses have blossomed, and overseas revenue has grown steadily. In the first half of the year, the company's six major business groups, namely, electronic control of smart home appliances, power supply, new energy and rail transit, industrial automation, intelligent equipment and precision connection, all showed a growth trend, with an income of 13.989.713.163.831.69 / 139 million respectively, an increase of 22.33%, 9.20%, 43.76%, 65.63%, 20.14% and 3.56% respectively over the same period last year. In the first half of the year, the company continued to make efforts in overseas markets, achieving export revenue of 1.038 billion yuan, an increase of 9.12% over the same period last year, accounting for 31.59% of revenue. In addition, with the increase in the proportion of overseas income, in order to resist the risk of external uncertainty, on the one hand, the company has built part of its production capacity in Thailand, India and other overseas regions to form a stable cooperative relationship with local outsourcing factories. On the other hand, comprehensively carry out foreign exchange hedging business and choose the opportunity to settle some foreign currencies into RMB to reduce and hedge foreign exchange risks.
Profit margins hit bottom and picked up, and investment in research and development continued to strengthen. In the first half of the year, the company's gross profit margin was 25.03%, year-on-year + 1.60pct; net profit rate was 11.83%, year-on-year + 3.40pct; sales / management / R & D / financial expense rates were 4.28%, 12.84%, 10.13%, 0.005%, respectively, year-on-year change + 0.58/+0.36/-0.04/-0.26pct. In the first half of the year, the company's R & D expenditure was 333 million yuan, an increase of 21.05% over the same period last year, accounting for 10.13% of the sales revenue. With R & D polishing technology, technology layout business, business platform to support R & D, such a positive cycle, enhance the competitive advantage of the company's business, and ensure the sustained growth of the company's revenue.
Investment suggestion: from 2023 to 2025, we expect the company to achieve operating income of 70.16,92.11 billion yuan and net profit of 7.34 billion yuan and 8.72 billion yuan. The corresponding PE is 20.43, 17.19 and 11.34 times respectively, which is covered for the first time and is rated as "overweight".
Risk hint: upstream raw material price fluctuation risk; industry competition intensification risk; exchange rate fluctuation risk