23H1's revenue rose year-on-year, while non-return net profit declined year-on-year. The company's 23H1 realized income, net profit attributable to listed company shareholders and net profit attributable to non-listed company shareholders were 1.307 billion yuan, 55 million yuan and 22 million yuan respectively, representing year-on-year changes of 41.89%, 156.54% and-34.26%, respectively.
23Q2's realized income, net profit attributable to listed companies and net profit after deducting non-vested shareholders were 800 million yuan, 21 million yuan and 19 million yuan respectively, representing year-on-year changes of 34.32%, 61.11% and-38.49%, respectively.
23H1's sales expenses, government subsidies and credit impairment losses increased compared with the same period last year, while administrative expenses decreased. The company's 23H1 gross profit margin and net profit margin were 24.09% and 4.48% respectively, an increase of 0.56% and 2.24% respectively over the same period last year. 23Q2's gross profit margin and net profit margin were 24.98% and 2.97% respectively, with year-on-year changes of-0.19% and 0.83% respectively, and month-on-month changes of 2.30% and-3.89%, respectively. The sales expense rate and management expense rate of 22H1 were 7.85% and 3.99% respectively, with year-on-year changes of 1.35% and-5.12% respectively, and sales expenses and management expenses changed by 71.52% and-37.88% respectively. The year-on-year increase in 23H1 sales expenses is mainly due to a 32.0461 million increase in employee compensation and a 19.6655 million increase in advertising expenses; the reduction in management expenses is mainly due to 35.6906 million of 22H1 share payment fees and no share payment fees in 23H1.
In addition, 23H1's other income increased by 25.14 million yuan compared with the same period last year, mainly due to an increase of 24.8816 million yuan in government subsidies related to revenue; 23H1's credit impairment loss was 30.8745 million yuan, an increase of 37.466 million yuan over the same period last year.
The net cash flow of 23H1 operating activities increased compared with the same period last year, and the inventory operation efficiency and accounts receivable operation efficiency increased compared with the same period last year. The net cash flow generated by the company's 23H1 operating activities was-78 million yuan, an increase of 76.39% over the same period last year. At the same time, the cash-to-cash ratio and net-cash-to-cash ratio of 23H1 are 0.98 times and-1.33 times respectively, which is 0.03 times lower than that of the same period last year. In addition, the company's 23H1 inventory turnover days and accounts receivable turnover days were 54.04days and 257.84 days respectively, shortening 34.72days and 74.82days respectively compared with the same period last year.
Adhere to the polymer core strategy, capacity expansion plus channel development, help the company to increase its market share. With the tightening of environmental protection and the upgrading of supervision in the waterproofing industry, the backward production capacity of some small enterprises is expected to be eliminated quickly. The company focuses on the core strategy of polymer waterproofing, and the polymer industrial park adopts a full set of production lines in Italy and Germany. The company has been put into production in Suzhou, Tangshan, Huanggang and Nanchong, and the production bases of Guigang and Suqian are also under construction. Direct marketing channels have reached strategic cooperation with leading enterprises such as Vanke and Poly, and at the same time vigorously develop distribution channels to help the company increase its market share during the industry reshuffle period.
Profitability and valuation. We estimate that the EPS of the company from 2023 to 2025 will be 0.37,0.65,0.70 yuan per share, respectively. Comparable to the average forecast PB of listed companies in 2023, we will give the company an average forecast PB of 2.3-2.6 times in 2023, corresponding to a reasonable value range of 14.95-16.90 yuan per share, with a "better than the market" rating.
Risk hint. Downstream real estate customer capital risk, asphalt prices significantly increase the risk.