Taijing Technology released the semi-annual report of 2022: in the first half of 2022, the company realized operating income of 525 million yuan, a decrease of 6.78% over the same period last year, realized net profit of 136 million yuan, an increase of 42.09% over the same period last year, and realized net profit of 108 million yuan after deducting non-return, an increase of 17.12% over the same period last year.
Main points of investment
High value-added products, structure optimization drive gross profit margin upstream in the first half of 2022, the company relies on the advantages of semiconductor lithography technology to promote product research and development and market development in new application fields, under the background of repeated epidemic and other unfavorable factors, actively take various measures to reduce costs and increase efficiency, while increasing the development and deployment of terminal markets such as the Internet of things, industrial control, automotive electronics, modules, optical communications and so on. To achieve a year-on-year increase in net profit. In a single quarter, 2022Q2 achieved revenue of 263 million yuan, which was basically the same as the previous quarter, and achieved a net profit of 62 million yuan, an increase of 8.19% over the same period last year. In terms of profitability, the company as a whole achieved a sales gross profit margin of 40.40% in the first half of 2022, an increase of 7.71pct over the same period last year, a net sales margin of 26.16% and an increase of 9.45pct over the same period last year. The increase in the proportion of high-margin lithography KHz products pushed the company's gross profit margin up. In terms of expenses, the annual sales, management and financial expense rates of the company in the first half of 2022 were 1.78%, 6.38% and-2.39% respectively, of which the decrease in financial expenses was mainly due to the increase in exchange rate gains caused by exchange rate changes. In terms of R & D expenditure, the company continued to increase R & D investment in the first half of 2022, with R & D expenditure of 29.9038 million yuan, an increase of 21.35% over the same period last year.
With the rapid development of smart terminals, wearable devices, automotive electronics, WI-FI6 and other fields, according to the China Industry Information Network, the demand for quartz crystal oscillator is expected to reach 312.5 billion in 2025, and the gap between supply and demand will reach 100 billion, which will usher in new opportunities for the development of crystal oscillator industry. The company ploughs the crystal oscillator industry, and its product line covers DIP tuning fork series, chip tuning fork series, chip high frequency series, chip thermal series, SPXO/TCXO/VCXO/OCXO series, car gauge grade product series, and has become one of the few crystal manufacturers with full range product R & D and production capacity in the industry. The company gives full play to the advantages of semiconductor lithography technology, and independently develops all kinds of special equipment in micro quartz wafer development, micro SMD crystal resonator and high stability crystal oscillator closed testing. The self-produced upstream materials extend from DIP to SMD products, while maintaining a high product quality rate of more than 97% while further expanding the company's scale and cost advantages. In addition, based on the application needs of industrial Internet, server, Beidou, 5G base station, automotive electronics and so on, the company has increased the construction and re-investment of XO, TCXO and other production lines. And with the development of intelligent cars and the introduction of customers, we will focus on promoting the construction of production lines, the development and process optimization of product numbers, and the improvement of production capacity, so as to lay a solid foundation for the company's long-term growth.
Profit forecast
We believe that the company is affected by the weak consumer terminal demand in the short term, and does not change the long-term steady development trend. It is predicted that the company's 2022-2024 income will be 15.64,19.62,2.449 billion yuan respectively, EPS 1.12,1.42,1.78 yuan respectively, and the current stock price corresponding to PE is 30,24,19 times, maintaining the "buy" investment rating.
Risk hint
The downside risk of industry prosperity, the risk that the progress of capacity expansion is not as expected, the risk of intensified competition in the industry, the risk of product price fluctuation, and so on.