Event
On August 10, 2023, the company released its half-yearly report on 2023. 2023H1 achieved a revenue of 610 million yuan,-38.68% year-on-year, and a net profit of 14 million yuan,-94.01% compared with the same period last year. Excluding the impact of share payment fees, the net profit was 60 million yuan,-85.93% last year.
Main points of investment
Short-term performance is under pressure due to weak terminal demand. Affected by macro factors such as weak end market prosperity and slowing downstream demand, 2023H1 achieved revenue of 610 million yuan,-38.68% year-on-year, of which signal chain chip sales revenue was 480 million yuan, year-on-year-31.03%, power management chip sales revenue 130 million yuan, year-on-year-57.63%, signal chain chip revenue accounted for 78.53%, power management chip revenue accounted for 20.85%. In terms of gross profit margin, the company made active and passive price adjustments in the first half of the year, with a comprehensive gross profit margin of 54.74%, year-on-year-3.58%, including signal chain chip gross profit margin of 56.63%, year-on-year-5.26%; power management chip gross profit margin of 47.90%, year-on-year-2.18%.
Actively launch new products, industrial control, new energy areas to enrich the product portfolio. The company promotes product research and development and market expansion, signal chain product line launched lidar, leakage detection, operational amplifier and other new products, automotive-grade CAN transceiver full series mass production, and is the first in China to obtain IBEEESD report certification; power management product line launched a new type of linear voltage regulator, PMIC and more than 20 in high-end DC/DC switching power products mass production. In addition, the first MCU product is in the engineering sample verification stage, and the preliminary verification results meet the design goals, and the subsequent new product series has also entered the chip design stage, which will continue to enrich and expand the product portfolio in industrial control, new energy and other directions.
It is proposed to acquire Chuangxinwei, and the business will develop in coordination and diversification. Chuangxin Micro focuses on the R & D and sales of high-precision, low-power battery management and high-efficiency, high-density power management chips, and its products have entered domestic first-tier brand power customers such as Lixun Precision and Rome; in the single battery management chip market, the products have fully entered the mainstream wearable brands such as OPPO, vivo, XIAOMI, Huawei and so on. In terms of smartphones, the products import high-end smart phones with a share of more than 50%, and enter into international brands such as Motorola. Snape's traditional downstream customers are mainly pan-industrial, and the accumulation of consumer electronics is relatively small. Chuangxin Micro's current main customer group is consumer electronics. After the transaction, Snape and Chuangxin Micro will form a positive complementary relationship in the existing product categories, customer resources and sales channels to achieve effective business integration, meet diversified needs and enhance market competitiveness.
We will continue to increase investment in research and development and actively introduce talents. In the first half of the year, the company's R & D investment reached 280 million yuan, accounting for 46.26% of the current business income; as of June 30, the number of R & D technical personnel increased to 508, an increase of 34.39% over the same period last year, and R & D technical personnel accounted for 71.15% of the company's total staff. among them, there are 340 people with master's degree or above, accounting for 66.93% of the total R & D technical personnel. In addition, the company actively improves the organizational structure, corporate culture and underlying capabilities to attract more global leaders to join, through the global talent echelon to participate in the global competition.
Investment advice:
We estimate that the company's net profit from 2023 to 2025 will be 0.6 kg, 1.3 billion RMB, with a "buy" rating.
Risk Tips:
The market competition intensifies; the introduction of new products is not as expected; the downside risk of the semiconductor cycle.