Events:
On October 28, 2023, Shuangjian shares released three quarterly results: in the first three quarters of 2023, the company realized operating income of 1.854 billion yuan, + 9.28% year-on-year; net profit of 162 million yuan, 90.79%; and non-return net profit of 158 million yuan, 82.62% of the same period last year. The net cash flow of operating activities was 216 million yuan, + 149.07% compared with the same period last year; the gross profit margin of sales was 20.26%, an increase of 4.86 pct over the same period last year; and the net profit rate of sales was 8.78%, an increase of 3.81pct over the same period last year.
2023Q3, the company realized operating income of 654 million yuan, year-on-year + 4.02%, month-on-month ratio-3.91%; realized return-to-mother net profit of 60 million yuan, year-on-year + 122.92%, month-on-month + 26.93%; realized non-return net profit of 59 million yuan, year-on-year + 89.33%, month-on-month + 23.10%. The net cash flow of business activities was 92 million yuan, year-on-year + 199.73%, month-on-month-15.83%; sales gross profit margin was 22.96%, year-on-year increase of 7.89pct, month-on-month increase of 3.67pct; sales net profit rate was 9.24%, year-on-year increase of 4.99pct, month-on-month increase of 2.27pct.
Main points of investment:
The gross profit margin is higher than the same period last year, and the company's profitability is further enhanced.
2023Q3 achieved a net profit of 60.47 million yuan, an increase of 13.01 million yuan on a month-on-month basis, and a gross profit of 150 million yuan on 2023Q3, an increase of 18.88 million yuan on a month-on-month basis, mainly due to the lower purchase price and lower cost of raw materials in stock, as well as an improvement in order structure and an increase in gross profit margin.
In terms of expenses, 2023Q3 sales expenses are 26.18 million yuan, an increase of 1.34 million yuan compared with the previous month; management expenses are 24.56 million yuan, an increase of 540000 yuan; and research and development expenses are 25.46 million yuan, an increase of 1.34 million yuan; and financial expenses are 2.39 million yuan, an increase of 6.56 million yuan, which is presumed to be caused by a decrease in exchange earnings. The credit impairment loss of Q3 is-1.87 million yuan, an increase of 6.9 million yuan compared with the previous month.
Steady progress in production capacity construction is expected to further increase market share with the company's convertible bond project "annual output of 15 million square meters of high-strength energy-saving and environmental protection conveyor belt project" has been put into production, the conveyor belt production capacity has been gradually increased to meet the demand of order growth. At the same time, we will steadily promote the construction of Taisheng Science and Technology "intelligent conveyor belt project with an annual output of 60 million square meters" to further expand production capacity and increase market share.
Expand the new application scene, long-distance conveyor belt to replace the traditional road transportation in recent years, due to the country's more stringent requirements for environmental protection, as well as the needs of enterprises to save energy and increase efficiency, the use of conveyor belts to transport bulk materials has been more widely used. For example, the use of conveyor belt transport has obvious advantages instead of truck transportation. compared with truck transport, conveyor belt transport of bulk materials has the advantages of safety, environmental protection, energy saving and high efficiency. Therefore, the company's downstream customers power, cement, steel, port and other industries in recent years gradually build long-distance conveyor belt projects to replace traditional road transportation, the demand for long-distance conveyor belt will increase steadily in the future.
The intelligent demand brings a broader market space for the conveyor belt under the background of the introduction of industrial policy, the relevant departments have issued industrial policy support documents one after another, making it clear that manufacturing intelligence is the key development area. In particular, the 2025 National Programme of Action clearly states that the degree of intelligence in the industrial sector should be improved. With the continuous development and maturity of the industrial Internet, mines, iron and steel, ports, sand and gravel aggregates and other industries downstream of industrial bulk material transportation are also facing the demand of intelligent upgrading, which also provides a broad market space for the conveyor belt industry.
Profit forecast and investment rating based on the first three quarters of the company's performance, we lowered the company's 2023-2025 forecast, the company is expected to return to the parent net profit of 2.29,3.03 and 379 million yuan in 2023 and 2024, respectively, corresponding to 14, 10 and 8 times PE, taking into account the company's leading position in the conveyor belt, maintain the "buy" rating.
The risk indicates the risk of raw material price fluctuation; the sea freight continues to rise; the product demand is lower than expected; the refund from downstream customers is not timely; and the progress of project construction is not as expected.