The net profit of the company in 202H1 was 1,60307 million yuan, down 66.14% from the same period last year, due to investment losses and the impact on R&D expenses of Tongfu Microelectronics. Excluding the influence of the above factors, net profit attributable to shareholders of listed companies in January-June 2022 was about 106.01 million yuan, and YOY was about 42.92%.
Automotive MCU research and development is progressing smoothly, and analog signal chains and AIOT continue to explore new fields and develop new products. 32-bit MCUs continue to increase their market share in many fields such as industrial control (industrial automation, fire fighting, smart buildings, power battery BMS, motor control, etc.), communications (optical modules, etc.), power tools, automotive electronics (such as in-vehicle multimedia, etc.), and smart homes. 32-bit MCUs account for more than 50% of MCU sales. The company's automotive MCU research and development is progressing smoothly, and the company continues to promote product quality system certification for vehicle regulations that meet ISO26262 functional safety. The company continues to launch new products and solutions in the field of analog signal chains to expand new application markets. In the fields of physiological parameter measurement, human-computer interaction, lithium battery management, etc., the company is developing a new generation of BIA and PPG analog front-end chips to consolidate its leading position. The lithium battery management chip BMS chip has strong computing power, high accuracy and good reliability to achieve large-scale shipments.
In the health measurement AIOT business, the company developed corresponding multi-master, multi-slave, BLE Mesh networking solutions to break through industrial fields such as power tools and two-wheel electric vehicles and achieve batch shipping. The AIOT business continues to expand in the Hongmeng field, adding nearly 20 new SKUs and expanding access to WIFI products.
Against the backdrop of declining demand in the consumer electronics sector, the company launched many new products to consolidate its leading edge in the full signal chain field. The company's business expansion has mainly benefited from the rapid growth of terminal product markets in automotive electronics, industry, smart homes, high-end consumer applications, etc. There are many types of downstream application markets. Market demand has changed significantly, but individual market demand is relatively limited. In 2022, demand in the consumer electronics sector declined, but the company launched many new products around the three product lines of analog signal chains, MCUs, and health measurement AIOT, further consolidating and maintaining the company's leading edge in the full signal chain field. The company's business strategy layout shifted its focus to high-end consumer, industrial, communications and computers, automobiles and other markets.
Profit forecasts and investment recommendations. We believe that the company continues to increase its investment in MCUs, analog signal chain chips, health measurement AIOT chips, etc., and the growth potential is worth looking forward to. We expect the company's corresponding EPS to be 0.76/1.60/1.97 yuan/share in 22-24, respectively. We think that the comparable company gave the company 30-33 times its PE valuation in '23. The corresponding reasonable value range was 48-52.8 yuan, corresponding to 5.0-5.5 times the 23-year PB valuation range, giving it a “superior market” rating.
Risk warning. Product upgrades fell short of expectations; R&D progress fell short of expectations; industry sentiment fell short of expectations.