Incident: The company released its 2023 semi-annual report, achieving revenue of 535 million yuan, an increase of 1.02% over the previous year; realized net profit of 118 million yuan, an increase of 52.44% over the previous year, in line with previous performance forecasts.
23H1 profit increased by 52.44%, and the product structure was further optimized. On the revenue side, the company achieved revenue of 535 million yuan in the first half of the year, a slight increase of 1.02% over the previous year. The increase mainly came from metal-plastic polymer self-lubricating rolling bearings. The business achieved revenue of 159 million yuan in the first half of the year, an increase of 3.54% over the previous year. Metal-plastic polymer self-lubricating rolling bearings are mainly used in the automotive field. They are products with a relatively high gross margin. 23H1 The comprehensive gross margin reached 49.16%. The increase in business share significantly improved the company's gross margin level. 23H1's comprehensive gross margin reached 36.23%, an increase of 9.71 pct over the previous year. On the profit side, the company 23H1 achieved net profit of 118 million yuan, a sharp increase of 52.44% over the previous year, and the product structure optimization logic continued to be implemented.
The “slip and roll” industry trend is getting closer and closer, and wind power bearing performance is worth looking forward to. In 2022, the company will further invest in the “New Project with an annual output of 14,000 self-lubricating bearings for wind power generation”, which shows that the company has full confidence in the “slip and roll” trend of wind power bearings. The company's self-lubricating bearings are made of customized polymer materials, have a low coefficient of friction, and are free of refueling and maintenance. Compared with other sliding bearing solutions, they are more suitable for working environments such as wind power spindles and gearboxes. The company received an order for a sliding bearing for the wind turbine main gearbox at the end of 2022, and the volume of wind power business is worth looking forward to.
Laying out screw production capacity is expected to open up new markets such as robots. The company's planned increase projects in 2022 include the “30,000 ball screw set project”, which is currently under smooth construction. After the project is completed, the company will obtain a production capacity of 30,000 sets of ball screws. Ball screws are one of the core components of precision linear transmission. They are widely used in manufacturing industries such as automobiles, machine tools, and aerospace. At the same time, Tesla humanoid robots also use screw transmission solutions, and robots will bring a broad incremental market to screws. The company lays out ball screw production capacity. On the one hand, it provides a guarantee for the company to expand its share in the automobile market, and on the other hand, it is expected to enter the robot market with this, opening up space for imagination.
Profit forecasts and investment recommendations. We expect the company's operating income from 2023-2025 to be 1,263/15.65/2.001 billion yuan, net profit to parent is 222/279/362 million yuan, and the corresponding PE to the current market value is 26.6/21.2/16.3X. The company is a leader in self-lubricating bearings in China. It is expected to open up incremental markets for wind power and robots, have upward elasticity in profit and valuation, and maintain a “buy” rating.
Risk warning: risk of macroeconomic fluctuations; risk of fluctuations in raw material prices; risk of exchange rate fluctuations.