Event: the company released the 2023 China report, with revenue of 270 million yuan, year-on-year + 35.4%, and net profit of 90 million yuan, + 43.0% year-on-year. In the split quarter, Q2 realized revenue of 140 million yuan, year-on-year + 35.1%, month-on-month + 6.8%, and home net profit of 50 million yuan, + 52.2% year-on-year and-4.6%.
A number of new customer projects have entered the stage of mass production, and the traditional business continues to grow. The company's Mexican Volkswagen, MAN and other customers of new projects mass production, valve transmission group precision parts product revenue of 190 million yuan, year-on-year + 32.3%, to provide a guarantee for the company's performance leading peers. The revenue of precision parts of valve group was 40 million yuan, which was + 13.9% compared with the same period last year. During the reporting period, the company has been assigned new projects by European Volkswagen, BYD and Great Wall Motor, and the follow-up projects will contribute new increments to the company's main business.
Huzhou new coordinates to achieve a stable volume supply, the first half of the performance accelerated volume. Relying on the strong R & D capability, Huzhou New coordinate has significantly improved the process stability of cold heading wire refining and reduced the production cost. It has made a steady supply to many bearing manufacturers, such as people-oriented and Wanxiang, as well as auto parts companies such as Fu'ao shares and Huayuan shares. 23H1 Huzhou New coordinates achieved revenue of 30 million yuan, + 103.9% compared with the same period last year. At present, Huzhou New coordinate is cooperating with the audit of customers in many industries, gradually completing the trial production and delivery of products, superimposing the company's active development of overseas markets, and is expected to turn losses into profits in the future so as to contribute to the company's performance.
Overseas production capacity continues to be released, focusing on the new energy vehicle industry. 23H1 achieved overseas revenue of 90 million yuan, + 61.0% compared with the same period last year, accounting for 32.6% of the company's operating income, and improved 5.2pp over the same period last year. 23H1 Europe New coordinates achieved revenue of 40 million yuan, + 67.6% year-on-year, while Mexico New coordinates realized revenue of 10 million yuan, + 67.0% year-on-year.
The overseas commercial vehicle and passenger vehicle market will develop synchronously, laying the foundation for the company's sustainable growth in the future. The new energy board plate began to work, and the revenue of 23H1 new energy vehicle products was 50 million yuan, accounting for 18.5% of the company's operating income.
The company builds a team to continuously expand the development of precision components in the industrial chain of new energy vehicles, such as carbon dioxide heat pump system and thermal management integration module, electric drive system, power battery system shell, etc., along with the mass production of corresponding projects, the new energy sector is expected to become the company's second growth curve.
Profit forecast and investment advice. We expect the compound growth rate of homing net profit in the next three years to be 40.0%, giving the company 15 times PE in 2024, with a target price of 33.60 yuan. Cover for the first time, giving a "buy" rating.
Risk tips: market competition risk, raw material price fluctuation risk, lower-than-expected customer sales risk, policy adjustment risk, geopolitical risk and so on.