Revenue for the first half of the year increased 2% year on year, and net profit returned to parent decreased by 64% year on year. The company's 1H22 revenue was 188 million yuan (YoY 2%), net profit was 26 million yuan (YoY -64%), net profit of non-attributable income was 225 million yuan (YoY -62%). Among them, 2Q22 revenue was 92 million yuan (YoY -8%, QoQ -4%), net profit attributable to parent was 0.06 million yuan (YoY -84%, QoQ -71%), net profit of non-attributable income was 0.5 billion yuan (YoY -86%, QoQ -74%).
Looking at profitability, in the first half of the year, gross margin fell 13.47 pct to 39.36%, net interest rate fell 21.48 pct to 17.97%; 2Q22 gross margin was 34.87%, down 19.90 pct year on year, 8.82 pct month on month, net interest rate was 10.38%, down 27.42 pct year on year, and 14.90 pct month on month. The decline in gross margin was mainly due to the increase in the prices of raw materials and accessories.
The fund-raising project is progressing smoothly, further exploiting the advantages of industrial collaboration. The company's listed silicon wafer project is progressing smoothly. As of June 30, 78% of the capital raised has been invested, and customer verification and product upgrades are being actively arranged. Through the “Silicon Diffuser for Device Chips, Special High Voltage and Automotive High Power Diode Production Project” project, Jiangsu Gaoxin has further enriched the company's product types on the basis of existing high-frequency high-voltage semiconductor chip device products. In the first half of the year, silicon chip revenue was 188 million yuan (YoY -39%), accounting for 47%, gross profit margin of 37.82% (-15.9pct); silicon rod revenue of 0.4 billion yuan (YoY 5%), accounting for 21%, gross profit margin 29.94% (-21.4pct); power chip and device revenue was 55 million yuan, accounting for 29%, with a gross profit margin of 45.9%.
Increase investment in R&D, with independent research and development as the core competitiveness. The company has independently mastered many core technologies for semiconductor silicon material manufacturing and processing, such as magnetically controlled direct drawing (MCZ) crystal pulling technology, re-feed direct drawing technology, diamond wire multi-wire cutting technology, high-precision heavy doping technology, high-efficiency heavy arsenic doped monocrystalline silicon growth technology, and high-precision polished silicon wafer processing technology. At the same time, it also has the core technology for the development and manufacture of high-frequency high-voltage diodes. As of June 30, the company has 42 invention patents and 64 utility model patents, covering all aspects of production and testing of semiconductor silicon materials and semiconductor power chips and devices. In the first half of the year, the company's R&D expenses were 11.97 million yuan (YoY 95%), and the R&D rate increased by 3.04 pct to 6.37%.
Investment suggestions: The fund-raising project is progressing smoothly, but short-term performance is under pressure. The adjustment to the “increase in holdings” rating was adjusted to the “increase in holdings” rating. We expect the company's net profit from 2022-2024 to be 1.18/1.56/217 million yuan, a year-on-year growth rate of -10/32/ 39%; EPS is 1.17/1.55/2.15 yuan, and the PE corresponding to the stock price on August 24, 2022 is 42/32/23x, respectively. The company's fund-raising project is progressing smoothly, but short-term performance is under pressure, and the adjustment is to “increase holdings”
ratings.
Risk warning: The risk that fund-raising projects will not progress as expected, demand will fall short of expectations, and competition will increase.