Event: the company released 2023H1 financial results, achieving revenue of 1.48 billion yuan, + 4.1% compared with the same period last year. The net profit is 20 million yuan,-67.3% compared with the same period last year, the gross profit is 15.7%, and the net profit is 1.4%.
The equipment business is growing rapidly, and the fluctuation of customer demand affects the discharge of electric drive. 2023H1, company equipment revenue 1.22 billion yuan, year-on-year + 33.2%; equipment business orders-on-hand 5.74 billion yuan, + 3.1% year-on-year.
The company's equipment business continues to deepen cooperation with Tesla, Inc., New Power and so on, and customer stickiness is strengthened. In the motor electric control business, due to the lower-than-expected volume of some customers, the delivery volume decreased by 33% to 49000 units compared with the same period last year (including Daoyi Power 62900, year-on-year-37.5%), and the revenue decreased by 48.62% (including Dao-1 year-on-year-44.38%). As the prosperity of the industry continues to pick up in the second half of the year, the company has also added new fixed points such as Changan Automobile and Chery Automobile, and the delivery volume is expected to improve.
New projects and new investments disturb short-term profits, and Q2 is under pressure in a single quarter. 2023H1, the company's gross profit margin year-on-year-1.95PCT, net profit margin year-on-year-3PCT, mainly by (1) the equipment business has two low gross profit margin projects delivered in the current period, (2) motor electronic control delivery is not expected to affect the sales structure and capacity utilization, (3) part of the pre-project investment and continuous development landed in the current period, increased the allocation of fixed costs, in which the R & D expense rate is year-on-year + 1.48PCT. Q2 in a single quarter, the gross profit margin decreased to 13.95%, the same / month ratio was-2.31/-3.92pct, the net profit rate was-0.17%, and the same / month ratio was-3.19/-3.45pct. H2 profits are expected to improve as new projects continue to be released.
The company deeply ploughs the field of new energy, electric drive and equipment two-wheel drive to promote development. In the first 7 months of 2023, about 4.525 million new energy passenger vehicles were sold in China, + 42.1% year on year. In the medium to long term, new energy vehicle companies are expected to open up more third-party supply to cope with the fast-growing capacity demand. The company is an enterprise with the ability of electric drive product research and development, production and equipment manufacturing, with obvious cost and technology synergy advantages, has obtained a number of head enterprise equipment and electric drive electric control orders, and the market share is expected to continue to increase.
Investment advice: due to the lower-than-expected volume of some customers, we expect the company to achieve operating income of 4.16 billion yuan, 5.52 billion yuan and 7.37 billion yuan in 2023-2025, with a net profit of 150 million yuan, 290 million yuan and 450 million yuan, corresponding to 32, 17 and 11 times of PE, maintaining a "buy" rating.
Risk tips: terminal sales are not as expected, new orders are not as expected, and R & D progress is not as expected.