Jueshun released the 2023 interim report. In 2023, H1 Company realized operating income of 2.772 billion yuan, down 17.91% from the same period last year, and realized non-net profit of 98 million yuan, down 26.02% from the same period last year.
The decline in H1 revenue in 2023 is mainly due to the decline in the unit price of products. 1) in terms of product operating income, the operating income of H1 company's main business (nylon slices) decreased by 17.90% to 2.769 billion yuan in 2023, which was mainly due to the decrease in the unit price of products compared with the same period in 2022. 2) from the point of view of product gross profit margin, the gross profit margin of H1 in 2023 increased by 0.72 percentage points to 7.65% compared with the same period last year. 3) in terms of product sales, the sales of H1 nylon chips in 2023 was 225100 tons, down 6.94% from the same period last year.
4) the rates of sales, management (including R & D expenses) and financial expenses increased by 0.07, 1.28 and-0.15 percentage points to 0.22%, 3.55% and-1.05% respectively in 2023, and the R & D expense rate rose 1.13 percentage points to 2.95% in 2023. The total expense rate of the three items increased by 1.20 percentage points to 2.72%. 5) H1 generated a net exchange profit and loss of-6 million yuan in 2023, mainly due to the company's export income, which was mainly settled in US dollars. the fluctuation of exchange rate in the first half of 2023 had a certain impact on the company's product export income and product market competitiveness.
The company actively promotes the construction of new projects and promotes convertible bonds and related projects in an orderly manner. 1) the project with an annual output of 180000 tons of polyamide 6 new materials has been put into production. 2) the company's second convertible bond is being carried out in an orderly manner, and its related investment project "annual output of 124000 tons of nylon new materials project, annual production of 80,000 tons of nylon new materials (nylon 66) project has been completed, environmental assessment approval and filing, and obtain the land required for the project. 3) other construction projects will be carried out in an orderly manner. Among them, the progress of the second phase of Shandong Luhua project reached 15%, and the progress of the R & D center construction project reached 40%. Other projects such as the project with an annual output of 124000 tons of nylon new materials and 80,000 tons of new nylon materials (nylon 66) are also being carried out in an orderly manner.
The company has the advantages of production equipment, R & D team, flexible production and so on. 1) the company is located in the high-end nylon 6 chip market, using German-made nylon 6 chip manufacturing equipment and technology, and signed a matching polymerization equipment supply contract with Beijing Sanlian, and built an advanced production equipment system. 2) the company's R & D team has many years of experience in the R & D and production of nylon 6 polymerization process to provide technical support for the research and development of new products.
3) the company runs flexible factors through all aspects of factory production design, and flexible production helps the company to achieve multi-variety, small batch and multi-batch production. It is also convenient for the company to establish a new production line and adjust its production capacity with a smaller threshold and lower cost.
Profit forecast and investment rating. Due to the decline in product prices, we estimate that the EPS of the company from 2023 to 2025 will be 0.77,1.09,1.25 yuan (originally 1.03,1.36,1.49 yuan). With reference to the valuation of comparable companies in the same industry, based on the valuation of 16 times PE (originally 15x) in 2023, the corresponding target price is 12.32 yuan (- 20%), maintaining the "better than the market" rating.
Risk tips: in the construction of capacity progress is not up to expectations; macroeconomic decline; product prices fluctuate greatly.