Events:
The company issues the 2023 half-yearly report.
Comments:
Terminal demand is beginning to show signs of warming, the company's revenue has achieved rapid growth. The company's 2023H1 realized revenue of 1.199 billion yuan, + 19.21% year-on-year, and net profit of 25 million yuan,-41.59% compared with the same period last year.
Of this total, the income of LED chips and epitaxial wafers was 603 million yuan, + 5.47% compared with the same period last year, and other income was 596 million yuan, + 37.32% compared with the same period last year. In a single quarter, 2023Q2 achieved revenue of 656 million yuan, year-on-year + 25.00%, month-on-month + 20.76%, + 20.76%, + 79.83% year-on-year net profit, turning loss into profit.
Production efficiency increased, superimposed costs decreased, and the company's profit level rebounded significantly. 2023H1's gross profit margin is 9.93%, year-on-year-3.84pct; net profit margin is 2.09%, year-on-year-2.18pct. Among them, the gross profit margin of LED chips and epitaxial wafers is 17.11%, year-on-year-5.15pct; other business gross profit margin is 2.65%, year-on-year + 0.09pct. In a single quarter, 2023Q2's gross profit margin is 11.02%, year-on-year-2.54pct, month-on-month + 2.40pct; net profit rate is 4.98%, year-on-year + 1.52pct, month-on-month + 6.38pct.
Commercial lighting is the first to recover, while backlighting and display end are gradually recovering. With the recovery of demand, the inventory clearance of LED products is accelerated. Due to the small inventory at the lighting end, the recovery is the most obvious. Commercial lighting is the fastest application in the overall lighting market. Backlight and display end due to the sluggish demand in 2022, more inventory, the transmission to the upstream is relatively slow, gradually warming up. Driven by the steady recovery of demand, the three major areas are expected to open open market space, and the LED market has gradually returned to the track of normal growth.
Continue to increase R & D investment, the company's products continue to develop to high-end. With the implementation of the "high light efficiency LED chip expansion and upgrade project", superimposed at the beginning of this year has been approved by the CSRC administrative license "Mini/Micro LED chip research and development and manufacturing expansion project" to promote, Mini LED, car lighting and other high-end high-end products have been launched, the company's product categories will be further enriched; with the increase in R & D investment, structure breakthrough, performance improvement, product upgrading, the company's development power will be further enhanced.
Profit Forecast: we expect the company's 2023Universe 2024Universe net profit in 2025 to be RMB 126 million, respectively, corresponding to the share price of PE on July 28, which is twice that of 46-35-29, maintaining a "buy" rating.
Risk Tips:
Capacity release is lower than expected and downstream demand continues to be weak.