[event]: the company released the 2023 medium report, the company achieved operating income of 2.041 billion yuan, year-on-year-10.88%; net profit of 278 million yuan,-0.76% year-on-year.
The performance is in line with expectations, and the operating efficiency has been improved: affected by the macro environment, the downstream end consumer product market remains in the doldrums, and the proportion of the company's consumer products continues to decline. Through actively opening up customers, the company has made breakthroughs in server, automotive electronics and other fields, and its share continues to increase. 2023Q2, the company achieved revenue of 1.035 billion yuan, year-on-year-16.04%, month-on-month + 2.89%. The company continues to optimize the product structure, while benefiting from the gradual climbing of the production capacity of the Zhaoqing factory, the production and operation efficiency has been improved. 2023Q2's gross profit margin is 26.08%, an improvement of 0.13% compared with the previous month; the net profit is 14.19%, an improvement of 1.14%; and the net profit is 147 million yuan, + 12.14% compared with the same period last year, and + 11.83% compared with the same period last year.
Datong strategic layout, open up high-quality customers to help growth: Datong is the company's key layout of the strategic track, the main products are general-purpose server CPU motherboard, AI acceleration card, power / fan / hard disk backplane / memory card and other matching boards, high-speed computers, switches, routers and other PCB. In the past year, the company focuses on the development of high-end server products, and currently imports Eagle stream and Birch stream products into small batch production, firmly seizing the many opportunities in the global server industry chain to achieve global server matching. According to the company announcement, the company's Intel server supplier qualification verification has passed, and AMD is passing the index test of its various products; through ODM/OEM manufacturers to achieve AWS, byte jump, NVIDIA Corp and other customers to provide high-quality products, making the server, switch-related PCB business income to achieve rapid growth.
New energy vehicles and new energy business continue to expand: in the field of automotive electronics, the demand for new energy vehicles PCB remains strong. The company has gradually deepened from traditional automotive consumer electronics to safety products; successively introduced inverters, charging piles, buried copper vehicle products, vehicle radar, MCU, VCM and other products, and developed 6oz small spacing products and semi-flexible board manufacturing technology, which have been applied in batch in many vehicle domain steering controllers. BYD, BergWarner, Yazaki, Hyundai Mobis, Desai Siemens, Japan Sandian and so on are the core customers of the company. Due to the early competition in the automobile industry, the price of the upstream has been reduced, and in the second half of 2023, the peak season of car sales is expected to come, which is expected to further boost the company's performance. In addition, the company actively develops the market in the field of new energy, especially in photovoltaic inverters, digital energy and other fields, and is expected to usher in volume this year.
Investment suggestion: the company grasps the high-speed development opportunity of AI server and automobile intelligence, actively opens up new customers, and strives to further improve its market share. We estimate that the company's revenue in 2023-25 will be RMB 5.750,827 million, and the net profit from its mother will be RMB 6.83 billion and the corresponding PE will be 9.02 times as much as 15.39pm and 11.67max respectively, maintaining the "overweight" rating.
Risk hints: weaker downstream demand; lower-than-expected risk of capacity expansion; geopolitical risk.