The company's total revenue grew steadily in Q23 and 22, and the semiconductor packaging and testing equipment business grew rapidly in 22. The company's 2023Q1 revenue was 143 million yuan, up 19.16% year on year; net profit of returned mother was 102 million yuan, up 8.62% year on year; net profit after deducting non-return mother was 17 million yuan, up 32.02% year on year; gross margin was 52.68%, down 0.03 pcts year on year; net interest rate was 15.35%, down 1.45pcts year on year.
The company's revenue in 2022 was 614 million yuan, an increase of 15.89% over the previous year; the net profit of the mother was 65 million yuan, a decrease of 44.56% over the previous year; net profit after deducting the return of the mother was 57 million yuan, a decrease of 15.42% over the previous year; the gross margin was 53.29%, a decrease of 0.13 pcts over the previous year; and the net interest rate was 10.99%, a decrease of 11.61 pcts over the previous year.
By business, the semiconductor sealing and testing equipment business revenue in '22 was about 324 million yuan, +36.11% year on year, and gross margin was 42.13%, +3.21pcts year on year, accounting for more than 50% of total revenue, which has become the company's core business; the revenue of the safety monitoring business was about 291 million yuan, -0.56% year on year, and gross margin was 65.71%, which remained stable.
The company is making impressive progress in localizing its dicers, air spindles, and blades, and will enter a production period. Dicing machine: The 8230, a localized equipment developed and produced by Guangli Ruihong, a wholly-owned subsidiary of Guangli Ruihong. As a mainstream 12-inch fully automatic biaxial cutting and dicing machine in the industry, it was highly recognized by leading domestic manufacturers and sold in bulk, successfully replacing high-end cutting and scribing equipment in China. Air spindle: The company has mastered a complete set of technologies and production processes for the core component, the air spindle. The domestic R&D team has now launched samples of air spindles for cutting and air spindles for grinding. It is expected that mass production of cutting spindles will be achieved by the end of 2023. Blade: Through full cooperation with the Israeli R&D team, the domestic R&D team has developed samples of soft and hard knives. It is expected that small-batch production will be achieved by the end of 2023. The localization of the company's testing equipment is progressing smoothly, and the release period will begin.
The company's product line continues to be enriched, and the launch of grinders and smart drilling rigs is expected to become a new driving force for growth.
Sealing and testing equipment business: The company has carried out iterative upgrades on the basis of existing domestic cutting equipment, and has developed upgraded models 8231/6231 to further enhance market competitiveness; the company has gradually enriched the packaging equipment lineage, and the grinding machine will be exhibited at the SEMICHINA exhibition in June 23.
Safety monitoring business: The company launched a new product “fully automatic digital intelligent drilling rig based on the Internet of Things”, which has already entered the trial sale stage, which will further enhance the company's competitive advantage and technical barriers in the IoT production safety monitoring equipment business and form a new business growth point.
Profit forecasting, valuation and rating: The company is one of only two companies in the world that can provide both complete scribing machines and the core component, the air spindle. The upstream and downstream layout of the scriber is complete, and will enter the release period with the verification and introduction of localization. Considering the impact of the downturn in industry sentiment, net profit attributable to the mother for 23-24 was lowered to 1.02 (down 65.7%) and 1.34 (down 66.8%), respectively. The estimated net profit for 25 years was 177 million yuan. The current market value corresponding to PE was 70x, 53x, and 40x, maintaining the “buy” rating.
Risk warning: The risk of mergers and acquisitions integration, technology development falling short of expectations, and downstream applications and demand falling short of expectations.