Event: the company released its mid-2022 report that its operating income in the first half of the year was 472 million, an increase of 28% over the same period last year; the net profit attributed to shareholders of listed companies was 127 million yuan, an increase of 106% over the same period last year; and 123 million yuan was deducted from non-net profit, an increase of 113% over the same period last year.
Consumer electronics boom fluctuations affect income growth. Affected by the fluctuation of the prosperity of consumer electronics, the growth of 22Q2 has slowed down, of which the income of 22Q2 is 207 million yuan, down 22% from the previous month; and the net profit from home is 61 million yuan, down 6% from the previous month. The comprehensive gross profit margin in the first half of the year was 45.78%, maintaining an upward trend. The company continued to increase R & D investment, with R & D expenditure of 50.25 million yuan in the first half of the year, an increase of 89.5% over the same period last year, accounting for 10.65% of revenue Prida.
The net operating cash flow in the first half of the year was 56.5 million yuan, a sharp improvement over the same period last year.
Continue to expand categories and downstream applications, into the BYD supply chain. The company actively continues to expand categories around major customers, and the field of cooperation has gradually expanded from mobile phones and wearable devices to home appliances, automotive electronics and other business sectors. In the first half of the year, the company actively carried out product and market layout, expanded the development of automotive and new energy markets, and has successfully entered the BYD supply chain.
The upstream production capacity has been alleviated, and the high-pressure process has been actively converted to production. Since the second quarter, the capacity of the upstream supply chain has eased, while there is a structural tension in some high-pressure processes. The company quickly switched to develop such process products and entered mass production to ease the delivery pressure on non-mobile phone products. We believe that the conversion of high-pressure process on the one hand to reduce the adverse impact of the consumer electronics boom, on the other hand, the volume of high-pressure products is expected to enhance the overall product competitiveness of the company and protect the level of gross profit margin.
Leading product performance indicators, active layout of new product research and development. With its high-quality products, rapid response R & D system and differentiated services, the company competes with some of the products of world-renowned IC design companies such as TI, ON Semi, DIODES and Richtek in specific areas, and some product performance indicators have reached or exceeded the competitive products of international brands, and the product online failure rate (DPPM) in customer production line is far lower than customer requirements. The company focuses on the simulation field, with the layout of signal chain, magnetic induction chip, power management unit (PMU), non-inductive AC input linear regulator, 80V high voltage and high current step-down converter IC, 100V high voltage and high current BUCK controller IC and other chip research and development projects. In the first half of the year, there were 26 new applications for intellectual property projects (including 13 invention patents), and a total of 4 intellectual property projects (including 4 invention patents) were obtained.
Maintain a "buy" rating. The company continues to expand product categories around major customers, the landing of electronic detonators is expected to further accelerate, and the vehicle market is expected to become a new growth point. We continue to be optimistic about the development potential of the company, but considering the negative impact of the downward boom of consumer electronics, the 22-24 net profit forecast for homing is reduced from 3.2pm to RMB 480,000,000 to RMB 27,000,000 to RMB 354.1 million. The adjustment rate is-15%, 12%, 13%, corresponding to a PE of 28, 22, 19X, respectively, maintaining a "buy" rating.
Risk tips: the consumer electronics boom is declining, the competition pattern of the simulation industry is deteriorating, and the penetration progress of electronic detonators is lower than expected.