Event: on July 14, the company issued a half-year performance forecast for 2023. The company's 2023H1 achieved revenue of 218 million yuan, + 28% compared with the same period last year. It is estimated that the net profit of returning to the mother is 6-7.2 million yuan, down 62% RMB68% compared with the same period last year. It is estimated that the non-net profit will be deducted from-50 yuan to-100000 yuan, down 104% from the same period last year.
The horizontal and vertical expansion of the market has achieved initial results, and revenue has achieved rapid growth. The company's 2023H1 achieved operating income of 218 million yuan, + 28% compared with the same period last year; single Q2 realized operating income of 146 million yuan, + 41% year-on-year, + 102% month-on-month, and achieved rapid revenue growth, mainly due to the initial results of the company's video and audio products and solutions in the horizontal expansion of the industry and vertical penetration of the market. It is expected that the company will continue to expand its product line and expand its revenue scale in the future.
Operating cash flow continues to improve, and profits are under short-term pressure. The 2023H1 of the company realized the net cash flow of operating activities of 98 million yuan, + 232% compared with the same period last year, the accounts receivable fell sharply, and the operating cash flow of the company continued to improve. The decline in net profit is mainly due to the increase in expenses during the period. in recent years, the company has continued to increase investment in research and development, sales and chip design, and labor costs have increased compared with the same period last year. At the same time, a new equity incentive program was launched in 2023, and the share payment fee increased compared with the same period last year. In addition, the initial gross profit margin of some new businesses is low, which also has a certain impact on the company's comprehensive gross profit margin and net profit margin indicators.
Self-research chip is about to flow, which is expected to enhance competitiveness and profitability. The company will always take technological innovation as the foothold of its development, continue to invest heavily in R & D, and strive to further realize self-control and domestic substitution. Up to now, the company's self-developed ASIC video and audio processing chip project has completed chip design, verification, simulation and design services, and will be delivered to the wafer factory in the near future. We believe that the landing of the company's own research chip will greatly enhance the company's competitiveness and help the company obtain more self-controlled orders. at the same time, it is expected to improve the company's profitability, help performance repair and achieve sustained growth.
Profit forecast and investment rating: we expect the company's 2023-2025 net return profit to be 1.37 billion yuan, while the current share price corresponds to 21.1 PE, respectively. We continue to be optimistic about the steady growth of the company's future performance and maintain the "buy" rating.
Risk hint: the commercialization of technology is lower than expected, downstream demand is lower than expected, raw material price fluctuation risk, macroeconomic fluctuation risk.