Jinwu Financial News | Guoyuan International issued a research report that Xinbang Holdings (01571) H1 total income in 2023 was 1.515 billion yuan, an increase of 15.8% over the same period last year; net profit was 264 million yuan, an increase of 53.1% over the same period last year. Both revenue and profits hit record highs. 2023H1 gross profit margin is 33.4%, an increase of 4% over the same period last year, and profitability continues to pick up.
According to the bank, the average selling price of the company's products ASP rose 15.5 per cent from 6.78 yuan per H1 in 2022 to 7.83 yuan per H1 in 2023. The promotion of ASP is mainly due to the upgrading of old business and the expansion of new business. In the future, the company will continue to promote the strategy of developing more advanced assembly projects that involve more technology and more complex surface treatment processes than traditional electroplating processes. As of June 30, 2023, the total amount of orders on hand will be about 11 billion yuan in the next 4.5 years. According to the distribution of order delivery time, the company's revenue will most likely continue to grow in the next few years.
The bank forecasts that the company's 2023-2025 revenue will be 29.84 (+ 3.5%), 33.55 (12.4%) and 35.4 (+ 6) billion yuan respectively, and the corresponding net profit will be 5.33 (+ 23.6%), 5.71 (+ 7.1%) and 6.12 (+ 7.2%) billion yuan respectively. The bank believes that a six-fold PE based on 2024 results is a reasonable valuation, with a target price of HK $3.67 per share, with 21.2 per cent room to rise and maintain a "buy" rating.