1H22 homing net profit fell 28.4% compared with the same period last year, while gross profit margin and net profit margin increased month-on-month. The company's 1H22 revenue is 1.534 billion yuan (YoY-6.8%) and the net profit is 109 million yuan (YoY-28.4%). Of this total, 2Q22's revenue is 874 million yuan (YoY-7.7% QoQ 32.2%), and the net profit returned to its mother is 69 million yuan (YoY-35.2% QoQ 69.7%). In terms of profitability, 1H22 gross profit margin decreased by 3.8pct to 16.75% year-on-year, and net profit margin decreased by 2.1pct to 7.21% year-on-year, of which 2Q22 gross profit margin was 17.42% (YoY-4.7pctQoQQ 1.6pct) and net profit margin was 7.99% (YoY-3.3pctQoQ + 1.8pct).
In the first half of the year, PCB business was affected by the recession of power elimination, and the proportion of automotive electronics increased. Revenue from 1H22's PCB business and customized electronic devices business fell 4.04% and 2.81% respectively compared with the same period last year. Mainly because of the weakness of the consumer electronics market under the macro ring, the demand for HDI boards has declined significantly. 1H22's automotive electronics, data communications, intelligent terminals, industrial control and security and other businesses accounted for 33%, 30%, 23% and 14% of PCB business, respectively, while automotive electronics business increased by 27% compared with the same period last year, accounting for an increase in 8pcts.
On Semet Financial report stressed that the SiC market is expected in the future, and the AMB substrate has become a new trend of SiC packaging. WolfSpeed, which supplies more than half of the world's SiC, posted better-than-expected fourth-quarter revenue and the market was bullish on the future of the SiC market, with shares rising 29.33 per cent on Aug. 18. On, another SiC leader, said in its second-quarter results that it expects its 2022 SiC revenue to triple that of 2021, 90% of which will come from car customers, and is confident that it will generate more than $1 billion in 2023. In order to meet the requirements of high frequency, high temperature and high power applications of SiC-based third-generation semiconductor devices, the bonding force of copper layer of AMB substrate is much higher than that of DBC, and its thermal conductivity is 3 times higher than that of DBC, so it is the preferred module packaging material for SiC semiconductor devices.
Fully embracing new energy automotive electronics, AMB ceramic linings will be released soon. GUII predicts that the global AMB ceramic liner will grow from nearly US $400 million in 2020 to nearly US $1.6 billion in 2026, CAGR 25%.
The company focused on the PCB industry for 28 years, and began to transform around "PCB+" in 2020. The company has become a domestic first-line AMB ceramic liner supplier, automotive specification-level SiC-based AMB ceramic liner customers lead the way.
At present, the company's SiC AMB liner production capacity of 80,000 sheets / month, is expected to reach 200,000 sheets / month within three years. The company has carried out verification and mass production in the CRRC era, Zhenhua Technology and BYD Semiconductors. under the background of the rapid growth of the market, with the capacity expansion, the company AMB will quickly expand.
Investment advice: optimistic about the release of the company's capacity, AMB liner growth potential, maintain the "buy" rating.
We are optimistic that the company will seize the opportunity of electric and intelligent cars to achieve the strategic goal of embracing new energy in an all-round way. the company's 22-24 net profit is expected to increase by 26.48%, 37.46% and 36.04% year on year to 3.06,4.21 and 572 million yuan, corresponding to PE 28.5,20.76,15.28 times, reiterating the "buy" rating.
Risk hint: capacity release is not as expected; customer verification is not as expected; downstream demand is not as expected.