Event: according to the half-year report released by Ruilian Xincai, the operating income in the first half of the year was 616 million yuan,-31.3% compared with the same period last year, and the net profit was 58.29 million yuan, 63.8% compared with the same period last year. Q2 achieved operating income of 342 million yuan in a single quarter,-27.6% year-on-year and + 24.9% compared with the same period last year. The net profit was 44.23 million yuan,-45.6% and + 214.6% respectively.
Economic income and profit improved month-on-month, and profitability recovered.
In the first half of 2023, Ruilian New Materials achieved operating income of 616 million yuan, a year-on-year increase of-31.3%, a month-on-month increase of 5.6% over 22H2, a sales gross profit margin of 32.6%, a decrease of 4.6PCT over the same period of 22H1, a decrease of 9.5% of net sales profit, and a decrease of 8.5PCT compared with the same period last year. The decline in the industry economy led to a significant decline in revenue and gross profit margin compared with the same period last year, but compared with the second half of 22 years, the revenue side has recovered, and the month-on-month income has achieved positive growth.
According to the quarter, the operating income of Q1/Q2 in 2023 was 274 million yuan, which was-35.5%, 27.6% and 24.9%, respectively, compared with the same period of last year and Q1, respectively. From the perspective of net profit, the 23-year Q1/Q2 homing net profit was 0.14 million yuan, respectively, compared with the same period last year. The year-on-year 22Q1/Q2 was-82.4% and 45.6% respectively, while Q2 achieved a significant improvement compared with Q1, with a month-on-month ratio of + 214.6%. From the perspective of profitability: the gross profit margin of Q1/Q2 in 23 years is 32.2%, 32.9%, which is the lowest in nearly two years, while the net profit rate of sales is 5.1% 12.9%, respectively. After the net profit rate of Q1 has declined rapidly, Q2 has recovered somewhat, but it is still in a low position, and the decline in profitability has dragged down the company's profits significantly.
The company showed that the revenue of the materials sector reached 511 million yuan, accounting for 83% of the company's revenue, 22H1-36.7%, 22H2 + 15.3%, and the industry picked up slightly. The pharmaceutical sector achieved revenue of 76.82 million yuan, compared with 22H1 + 13.9% and 22H2-33.1%. Pharmaceutical CDMO has entered its worst state in nearly two years in the first half of 22, but there is still a certain decline compared with the second half of 22:
Display material plate: in the first half of the year, the company shows that the material business shows the following characteristics: (1) due to the strong downstream demand in the first half of 2022, the company shows that the material business has increased by a large margin than expected. after a cliff decline in downstream demand in the second half of 2023, demand recovered slowly in the first half of 2023, and the market continued to be cold. although it showed that the material business improved quarter by quarter, the overall income still decreased significantly compared with the same period last year. (2) in the slow recovery cycle of the display industry, the recovery degree of the company's OLED business is greater than that of the LCD business. (3) thanks to efficient R & D response speed and high-quality customer service, the number of new products in the OLED section of the company still maintains a high growth rate. Pharmaceutical CDMO plate: the terminal new process drugs of the main products of ① pharmaceutical plate are gradually released, and customers increase the procurement of pharmaceutical intermediates supporting this terminal medicine, which earns more than 10 million yuan; some pharmaceutical intermediates of ② are gradually mass produced and supplied, and the sales income increases slightly. Electronic chemicals sector: in the first half of 2023, the company's electronic chemicals and other new materials achieved sales revenue of 28.27 million yuan, accounting for 5% of the company's total business, an increase of 5.14 million yuan over the first half of 2022 and a year-on-year increase of 22%.
Profit forecast: pharmaceuticals and display materials are booming downwards. we have lowered our home net profit forecast for 2023-2025 to 161max 239pm 267m (the previous value is 239pm). Maintain the "buy" rating risk hint: consumer electronics boom continues to decline; pharmaceutical customer orders are reduced; safety and environmental risks