Event: on August 25, 2023, the company released 2023 semi-annual report. 23H1 achieved revenue of 10.369 billion yuan, +4.05% year-on-year; attributable net profit of 319 million yuan, -8.28% year-on-year; deducted net profit of 286 million yuan, +10.65% year-on-year. From a single quarter perspective, the company realized revenue of 6.059 billion yuan in 23Q2, +4.94% year-on-year, +40.58% YoY; net profit of 199 million yuan, -23.95% year-on-year, +65.83% YoY; non-deductible net profit of 181 million yuan, -16.73% year-on-year, +72.38% YoY. Expense control, 23H1 period expense rate of 10.11%, compared with 22 years, an increase of 0.31 pcts. R & D investment, 23H1 company R & D investment of 302 million yuan, accounting for 2.91% of operating income.
Intelligent cable network: continue to increase market share, technology-enabled high-end market. 23H1 the company's intelligent cable network segment operating results continue to maintain steady growth, the first half of the operating income of 9.707 billion yuan, an increase of 7.03% year-on-year, net profit of 570 million yuan, an increase of 26.64% year-on-year. The company actively promotes projects in various fields, and maintains industry leadership in segments such as extra-high voltage conductors, wind power cables, photovoltaic cables, nuclear power cables, and charging pile cables. Submarine cable business phase I project put into production at the end of 2023, will form the annual production capacity of photoelectric composite submarine cable and special submarine cable 2,000 kilometers, submarine fiber optic cable 6,000 kilometers, all kinds of cable accessories 27,000 sets and engineering services. At the same time 23 years H1 won/contracted more than 10 million yuan contract orders 12.117 billion yuan, an increase of 21.57%.
Intelligent Battery: rapid growth in energy storage business, copper foil to speed up production and technology investment. 23H1 the company's intelligent battery segment to achieve revenue of 227 million yuan; to achieve a net profit of -265 million yuan. The company's comprehensive layout of energy storage system business, products covering portable mobile energy storage, household energy storage, industrial and commercial energy storage, large-scale energy storage system. Among them, through the special design of industrial and commercial energy storage product modularization and parallel connection of multiple machines, it has successfully obtained orders. At the same time, we have created a variety of cylindrical batteries to serve the electric motorcycle, mobile energy storage, smart home and other fields, and have realized bulk supply from overseas customers. Lithium copper foil, far east taixing copper foil digital intelligence factory ultra-high precision lithium copper foil production capacity has reached 15,000 tons, far east yibin copper foil digital intelligence factory phase 1 30,000 tons project in September 2023 put into production.
Intelligent airports: the share of the bid is solid, new products are expected to develop new growth points. 23H1 company intelligent airport segment to achieve operating income of 401 million yuan, net profit of 0.41 billion yuan, 1.515 billion yuan of new contracts signed, an increase of 136.72%. At present, there are 76 projects under construction, covering 7 regions in China and 6 countries overseas. Beijing Aviation Security continues to maintain the core areas of aids to navigation lighting, air traffic control weak electricity business advantages, and vigorously develop the field track business and EPC general contracting business, to help Cambodia Siem Reap Angkor International Airport flight verification subjects all passed in one go, won the bidding for Harbin Taiping International Airport.
Investment advice: the company's intelligent cable network business to maintain industry leadership, energy storage business is expected to release, we expect the company's revenue in 2023-2025 were 28.404, 37.709, 49.069 billion yuan, with a growth rate of 31%, 32.8%, 30.1%; net profit attributable to the mother of 1.016, 1.555, 2.393 billion yuan, with a growth rate of 84.1%, 53%, 53.9%, corresponding to the closing price on August 28, the company 23-25 years PE is 10X, 7X, 4X. maintain "recommended" rating.
Risks: the risk of capacity expansion speed is not as expected; the risk of downstream demand is not as expected.
