Cracker Intelligence released its 2022 annual report and 23Q1 quarterly report. The results of the 22-year report were basically in line with expectations. The 23Q1 performance was slightly pressured by the influence of the traditional off-season plus R&D and management expenses rates. We think there is no need to worry about this, because the changes in the company's business structure in '22 and the company's many developments in the semiconductor equipment field since '23 indicate that Crick's diversified business layout has made long-term progress. It is expected that 23 will usher in the release of production capacity+new product output. As a result, we continue to maintain a “Highly Recommended” rating for Crick Smart.
Quick Intelligence released its 22-year report+23Q1 quarterly report. The 23Q1 performance was slightly lower than expected, mainly because Q1 was a traditional low season, where the profit and loss base was low and there was slight pressure on the previous year. Moreover, Q1 company continued to increase R&D investment and management investment, and R&D+management lowered the profit margin by about 2 points.
Specifically, in 2022, the company achieved operating income of 901 million yuan, YOY +15.48%, net profit of 273 million yuan to the mother, and YOY +2.14%. 2022Q4's single-quarter revenue was 238 million yuan, YOY +9.44%, QOQ +1.28%; the net profit of the mother was 52 million yuan, YOY +10.74%, and QOQ - 35.80%. 2023Q1 achieved revenue of 216 million yuan, YOY +5.53%, QOQ -9.24%; the return mother's net profit was 55 million yuan, YOY -9.23%, and QOQ +5.77%.
From the perspective of profit margins, Cracker's gross margin in 2022 was 51.92%, a slight increase of 0.28 pct over the previous year. Net interest rate was under slight pressure of 30.47%, down 3.89 pct from the previous year; Q1 Q23 had a single-quarter gross profit margin of 51.24%, and the net interest rate was 25.48%, down 2.3 pct and 4.36 pct, respectively.
Looking at the product structure, Cracker made outstanding progress in the field of AOI and semiconductor packaging in '22. Affected by the contraction of fixed asset investment in the 3C electronics industry in '22, the company's revenue for precision welding and assembly equipment in '22 was 662 million yuan, yoy +5.40%, and the growth rate declined somewhat; visual inspection process equipment revenue was 113 million yuan, YOY +28.93% (considering the volume of AOI benchmarks released in '23, the judgment of subsequent growth is still impressive); revenue of complete intelligent manufacturing equipment was 111 million yuan, YOY +79.88%; solid crystal bonding and packaging equipment revenue was 115 million yuan, yoy +443.98%, semiconductor packaging equipment Fulfilling the logic of 0 to 1, although the base is still small, higher value products such as patch machines and nano silver sintering equipment will be shipped in '23, and there is considerable room for growth.
The company's fee rate was generally stable in '22, and the fee rate increased in 23Q1. Due to the expansion of the company's new business and the expansion of sales scale, the company's sales expenses ratio was +1.59 pct year-on-year, the management expenses ratio was -0.28 pct year-on-year, and the financial expenses ratio was -4.64 pct year-on-year. During the 22-year reporting period, the company continued to increase R&D investment. The R&D expenditure rate reached 12.61%, +4.27pct over the previous year, and the company's R&D expenses rose further in 23Q1, reaching 13.22%.
The company expects to release a large amount of production capacity in 2023, and production of new products is expected to accelerate. At present, the company's new 25,000-square-meter plant is already in the engineering acceptance stage, mainly for expanding the production capacity of complete equipment for intelligent manufacturing, and some of the plants are used for mass production of semiconductor packaging equipment; the high-end eutectic solid-state equipment developed is expected to be officially launched on the market in the first half of 2023. IGBT solid-state crystallizers, formic acid eutectic furnaces and nano-silver sintering equipment have entered the customer process verification stage. Vacuum eutectic furnaces have formed small sales, and are expected to be sold in 2023; overseas, the company responds quickly to Apple by setting up subsidiaries and localized service teams in Southeast Asia The company's Southeast Asia production capacity layout.
Continue to maintain a “Highly Recommended” rating for Cracker Smart. 2023 is expected to be the year of the release of Quicker's new products, and the company is transitioning from a traditional soldering equipment leader to a solution provider in the field of electronic+semiconductor packaging and testing. On April 8, Longcheng Xingu in Zhejiang Province was officially launched and will become an important semiconductor industry incubation platform. Quaker's semiconductor packaging equipment (solid crystal machine+eutectic furnace+nano silver sintering equipment) will also be located in Longcheng Xingu. Another important event, the Munich Electronics Show company debuted an automotive-grade IGBT solid-state crystal machine in April, indicating that research and development in the semiconductor equipment sector, which has been accumulated a lot since the second half of '22, has finally paid off. We expect Cracker Smart to achieve net profit of 342/511/700 million yuan respectively in 23/24/25. We are optimistic about the company's subsequent business development, and continue to strongly recommend Cracker Intelligence!
Risk warning: New business development falls short of expectations, 3C prosperity declines, and major customers fall short of expectations.