Items:
The company released its "semi-Annual report 2022" on August 26, 2022H1. The company achieved operating income of 525 million yuan (YoY-6.78%), net profit of 136 million yuan (YoY+ 42.09%), net profit of 108 million yuan (YoY+ 17.12%), gross profit of 40.47% (YoY+ 6.22pct) and net profit of 26.16% (YoY+9.45pct). 2022Q2, the company realized operating income of 263 million yuan (YoY-15.66% YoY+ QoQ + 0.38%), net profit of 62 million yuan (YoY+ 8.19% score QoQ-16.2%), gross profit of 38.09% (YoY+4.06pct,QoQ-4.64pct), and net profit of 23.92% (YoY+ 5.48pctQoQ-4.49pct).
Comments:
1) the company's performance is basically in line with expectations, the proportion of high-margin KHz lithography products has increased, and the profit level has maintained an all-time high. 22H1's revenue was 525 million, down 6.78% from the same period last year. Due to the divestiture of its subsidiary Penghe in the first half of the year, only its main business was the same as the same period last year. Q2 single-quarter revenue is still affected by the Yangtze River Delta epidemic and downstream destocking, and Q4 is expected to resume growth with the introduction of new customers. 22H1 achieved a net profit of 136 million, an increase of 42.09% over the same period last year. On the basis of the orderly operation of investment projects and the development of new production capacity in 2021, due to the strong competitiveness of the company's lithography KHz products, gross profit maintained a high water level, and the proportion of sales increased, which played a strong supporting role in net profit.
2) the price of Q2 crystal oscillator is stable as a whole, and the company controls costs by optimizing the process. It is expected that gross profit margin will be maintained and slightly increased in the second half of the year with the increase in MHz small size and active product shipments. In terms of KHz products, the company achieves a comprehensive automation upgrade of the production line and maintains a high gross profit margin of lithographic KHz products through process improvement. TF products as the company has occupied a larger market share of the dominant products, gross profit margin increased compared with the same period last year. At present, the price of MHz products has entered a stable range, and the contribution of GM 3225 products to the company's gross profit has gradually declined. at the same time, the company is introducing Mkz 2016 Mkz 1612 small size is expected to boost the gross margin of MHz products. Active products are currently being imported into domestic GNSS applications, and the increase in the proportion of sales in the second half of the year is expected to pull up the overall gross profit margin.
3) accelerate the verification of high-quality customers, promote domestic substitution, and lay the foundation for long-term development. In the Internet of things industry, the company's new product applications have been continuously certified by downstream customers, module customers break through Guanghetong, and meter communication modules introduce high-quality customers. In terms of Beidou application, the company supplies to Daxi and other customers. In terms of automotive electronics, the company has passed the verification of high-quality tier1 and tier2 one after another. in addition to BYD and Hyundai, it has newly entered the supply chain of high-quality companies such as NIO Inc., CRRC and Ningde era. at present, automotive customers have high requirements for product reliability, and the company actively cooperates to improve product stability to open up growth space for the company's long-term development goals.
Investment suggestion: the company's increase in new product research and development will continue to increase global market share. Due to the decline in demand for consumer Internet of things scenarios such as smart home, we adjust the company's revenue forecast for 2022-2024 to 1.376 yuan 2.416 billion yuan (the original value is 18.92 pounds 25.71 pounds 3.316 billion yuan). The homing net profit is 517 million yuan (the original value is 363), and the corresponding EPS is 1.13, 1.44, and 1.86 yuan (1.83, 2.51 and 3.17 yuan, 22-23). With the steady growth of the company's future performance, with reference to the comparable company valuation, the company is given 31x PE, corresponding to the 22-year EPS,6 target price of 35 yuan per share, maintaining a "strong push" rating.
Risk tips: Internet of things demand is lower than expected, the epidemic causes supply chain risk, product competition leads to price decline, and so on.