Core ideas:

Event-comments: infrared business project delivery, product iteration and integrated solutions are progressing smoothly, microwave radio frequency into the satellite Internet, high-reliability aerospace products, multi-point support performance has increased. The company announced its annual report of 2023, with revenue of 1.784 billion yuan (YOY+64.16%) and net profit of 258 million yuan (YOY+129.03%). 23Q2's single-quarter revenue is 994 million yuan (YOY+54.94%) and its net profit is 176 million yuan (YOY+79.24%). On the revenue side, in terms of business, the revenue of H1 infrared thermal imaging, microwave radio frequency and other businesses in 23 years was RMB 14.78 million respectively, an increase of 61.18%, 65.12% and 88.85% respectively over the same period last year. Infrared business development 8 μ m series products, photonic devices completed the development and delivery of multi-type InGaAs detectors, microwave radio frequency integrated layout into the satellite Internet, high reliability aerospace components and so on. From a regional point of view, revenue reached 1.103 billion yuan in China, an increase of 100.99% over the same period last year. Special areas delayed projects to normal delivery, precision guidance projects to batch production, some vehicle / pod projects into batch production preparation stage, Wuxi Huamei R & D / competitive bidding / production delivery was successfully completed, industrial and consumer products rich one-stop solutions, and actively expand the marketing network Overseas income reached 647 million yuan, an increase of 21.88% over the same period last year, comprehensively opening up the global outdoor sports, industrial testing and security visual market. At the profit end, the growth rate of H1 net profit in 23 years was higher than that of revenue, mainly due to (1) the overall gross profit margin increased by 2.60pct to 49.79% compared with the same period last year. Among them, the gross profit margin of infrared thermal imaging and microwave radio frequency increased to 52.79% 3.03pct/1.35pct 34.63% respectively. (2) during the period, the expense rate decreased 3.24pct compared with the same period last year, and the sales / management / R & D / financial expense rate increased-0.84/0.89/-4.54/1.24pct compared with the same period last year. The increase in management expense rate is due to the increase in equity payment, and the increase in financial expense rate is caused by the provision of interest charges on convertible bonds.

Profit Forecast and Investment suggestion: it is estimated that the EPS for 23-25 years will be 1.180.86pm 2.78RMB / share.

Considering the company's market position in uncooled infrared and its multi-dimensional perceptual layout, the company is valued at 50 times PE in 23 years, with a reasonable value of 58.90 yuan per share and a "buy" rating.

Risk tips: low expectations of product research and development, low expectations of equipment demand and delivery, policy adjustment, etc.