Event: the company issues a semi-annual report. In the first half of 2020, the company's operating income was 681 million yuan, an increase of 36.75% over the same period last year, and its net profit was 104 million yuan, an increase of 71.88% over the same period last year.
The Q2 company's operating income in a single quarter was 425 million yuan, an increase of 82.44% over the same period last year, and its net profit was 83 million yuan, an increase of 249.87% over the same period last year.
The company's R & D expenditure rate continues to grow. In 2021, H1, the company's R & D expenditure rate was 12.13%, an increase in 1.24Pct compared to 2019. On the basis of continuous R & D investment, continuous technological breakthroughs have been made, the technological advantages of the products have been established, and a good reputation has been established in the industry.
The expansion of new areas is smooth, and new energy and semiconductor businesses are expected to bring significant performance growth. According to the announcement, the company's new energy vehicle plate, subsidiary Sateng Leo science and technology development is good. And the company has completed the capital increase of Optima through Seton International, with a capital increase of 120000 million yen. So far, the total share capital of Optima is 39263 shares, and the company holds a 73.75% stake in the underlying company. With the help of Optima, the company is expected to grow rapidly in the semiconductor sector in the future.
With the smooth expansion of consumer electronics customers, Apple Inc's industrial chain is expected to usher in the New year. Sateng has established a good cooperative relationship with a number of world-renowned manufacturers of consumer electronics. Cooperation with high-quality customers, on the one hand, provides the company with considerable economic benefits, on the other hand, helps the company to establish a good reputation. In the process of long-term cooperation, Sateng has made great progress in its R & D ability, management ability, production organization ability and quality control ability, and the company's comprehensive competitiveness has been improved. it has laid a solid foundation for Seteng shares to continue to open up new industry markets and customers. In addition, this year Apple Inc will launch the first 5G mobile phone this year, which is expected to greatly improve Apple Inc's industrial chain demeanor and boost the company's 3C automation performance.
Investment advice: we expect the company's net profit to grow by 104.8%, 24.2% and 26.5% respectively from 2020 to 2022, with outstanding growth. Given the investment rating of Buy-A, the 6-month target price is 63.9 yuan, which is equivalent to the dynamic price-to-earnings ratio of 45X in 2020.
Risk tips: the impact of the epidemic exceeds expectations, customer expansion is less than expected in the quarter, exchange rate change risk, new industry market development risk, company rapid expansion risk