Event: on August 2, the company released its semi-annual report of 2023. The company's 2023H1 achieved revenue of 218 million yuan, + 27.89% year-on-year, and net profit of 6.6054 million yuan,-64.70% compared with 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.
The impact of cost and product structure, net profit under short-term pressure. The company's 2023H1 realized a net profit of 6.6054 million yuan,-64.70% compared with the same period last year, and the net profit declined, mainly due to the increase in expenses during the period. In recent years, the company continued to increase investment in research and development, sales, chip design, etc., and labor costs 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 fees were 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.
Accounts receivable fell sharply, and operating cash flow continued to improve. The company's 2023H1 realized the net cash flow of operating activities of 98 million yuan, + 232% compared with the same period last year, mainly due to the company's efforts to promote the collection of funds, the cash received from the sale of goods and services increased by 103 million yuan compared with the same period last year, the balance of accounts receivable at the end of the year decreased by 61.91 million yuan compared with the beginning of the year, and the company's operating cash flow continued to improve.
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, help the company obtain more independent controllable orders, improve the company's profitability, help performance repair and achieve sustainable development.
Active layout of the emerging track, product categories continue to enrich. In addition to the traditional business, the company is committed to the development of new tracks, active layout of AR/XR and other emerging areas. Relying on years of technology accumulation, the company has broken through the core technologies such as the new generation of XR digital interaction and augmented reality, and can integrate rendering, perceptual interaction and other new scenes. The company recently developed the following two XR digital products: X-shadow and Pandora, which were exhibited in the second Meta-Universe Ecological Expo, and won the Meta-Universe VR/AR/MR/XR leading Enterprise Award, the Digital Exhibition leading Enterprise Award, the Meta-Universe VR/AR/MR/XR Outstanding hardware Award, the Meta-Universe interaction Technology Award and the excellent Digital equipment Product Award.
Profit forecast and investment rating: we expect the company's 2023-2025 net profit to be 1.37 billion yuan, and the current share price corresponding to PE is 23-20-18. 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.