Event description

According to the annual report released by the company in 2022, the company realized operating income of 242 million yuan in 2022, an increase of 9.01% over the same period last year, realized net profit of 54.0322 million yuan, down 18.18% from the same period last year, and realized deduction of 44.2006 million yuan from non-parent net profit, down 30.73% from the same period last year. Basic earnings per share was 0.86 yuan, down 36.76% from the same period last year.

Event comment

The company's operating income increased steadily in 2022, mainly due to the smooth expansion of module testing. In the first half of 2022, with the gradual deepening of the company's understanding of the scene and demand of the industrial automation testing production line, the company's embedded intelligent instrument module testing program expanded from the original application in PCBA function testing to module testing, and the new product lithium battery protection board tester achieved large-scale sales in module testing, bringing business revenue growth. After entering the fourth quarter, COVID-19 's epidemic situation was repeated, the global economic recession, the weak demand in the consumer electronics market, the postponement of downstream customers' procurement plans for testing equipment, and the company's product sales and new areas were not as expected. However, judging from the situation throughout the year, the company's revenue has maintained steady growth.

The company's net profit dropped significantly in 2022, mainly due to the shortage of electronic materials and the increase in investment caused by rising prices. On the one hand, in the face of challenges such as shortage of electronic materials and rising prices, and repeated COVID-19 epidemic, in order to ensure timely delivery of orders, the company purchased more electronic raw materials from the spot market and provided production workers with subsidies for epidemic situation and overtime, resulting in a decline in gross profit margin. On the other hand, in order to continuously improve the technical level and competitiveness of the company's products, the company continues to increase R & D technology investment and market expansion, cultivate new business, introduce senior R & D personnel, and supplement the sales team. therefore, there has been a great increase in investment in R & D and marketing.

The company attaches great importance to R & D investment and management, and the performance of the new lithium battery protection board tester is superior. In order to continuously improve the technical level and core competitiveness of products, and consolidate the company's leading position in the industry, the company still maintains to increase R & D technology investment and market expansion, cultivate new business, and introduce senior R & D talents.

The newly launched lithium battery protection board tester for module testing is a high-precision measuring instrument, which is mainly used to test the basic characteristics and protection characteristics of lithium battery protection board. It has the characteristics of high precision, high reliability, high integration and compact size. Based on the company's original products and core technology, the product has been greatly upgraded in terms of accuracy, index performance, reliability and so on.

Investment suggestion

From 2023 to 2025, the company is expected to achieve revenue of 2.86,3.72 and 457 million yuan respectively, up 17.8%, 30.4% and 22.7% over the same period last year, and net profit of 0.60,0.75 and 91 million yuan respectively, up 10.2%, 26.2% and 20.4% respectively over the same period last year. The corresponding EPS is 0.89,1.13,1.36 yuan respectively, calculated at the closing price of 41.06 yuan on April 7, and the corresponding PE is 46.0X, 36.4X, 30.2X respectively.

Risk hint

The risk of high dependence on Apple Inc's industrial chain; the risk of a large gap with foreign modular testing program providers in terms of income scale and technology; the risk of differential competition between modular testing instruments and traditional instruments; the risk of chip supply shortage.