Revenue fell slightly in the second quarter compared with the previous quarter, and gross profit margin was under pressure. The company's 1H23 realized income of 612 million yuan (YoY-38.68%), net profit of 14 million yuan (YoY- 94.01%), and non-return net profit of-30 million yuan (YoY- 115.42%). Of this total, 2Q23's revenue is 305 million yuan (YoY-45.2%, QoQ-0.8%), the net profit returned to the mother is 12 million yuan (YoY-91% QoQ + 659%), and the non-return net profit is-11 million yuan (YoY-109% QoQ + 40%). The homing net profit excluding share payment fees in the first half of the year was 56 million yuan (YoY-86%). In terms of profitability, the gross profit margin in the first half of the year decreased by 3.6pct to 54.74% compared with the same period last year, and the net profit margin decreased by 21pct to 2.30%. The gross profit margin of 2Q23 was 51.61% (YoY-7.8pctQoQ 6.2pct), and the net profit rate was 4.08% (YoY-21.8pctQoQ + 3.6pct).
Continuously enrich and improve the product line, and speed up the introduction of new products in automotive electronics, energy storage, BMS and other fields.
In the first half of the year, the company realized income of 481 million yuan (YoY- 31.03%) for signal chain chips, accounting for 78.53%, with a gross profit margin of 56.63% (YoY- 5.26pct); and power management chips achieved income of 128 million yuan (YoY-57.63%), accounting for 20.85%, and gross profit margin of 47.90% (YoY- 2.18pct). The company continues to enrich and improve the existing product line, continue to increase investment in MCU, vehicle specifications, interfaces and other products, and speed up the introduction of new products in automotive electronics, energy storage, BMS and other fields, including the full series of automotive CAN transceivers in mass production, more than 20 high-end DC/DC switching power supply products in mass production, PMIC products in mass production, the first MCU product is in the engineering sample verification stage.
It is proposed to acquire more than 95% of Chuangxin's equity and enhance its overall competitiveness through coordination. On June 10, 2023, the company announced that it intends to purchase 95.6587% of the equity of Shenzhen Chuangxin Microelectronics Co., Ltd. by issuing shares and paying cash and raise supporting funds. Chuangxin Micro specializes in the development of battery management and power management chips, with hundreds of product models, including battery management chips, power management chips and power device chips. the products are widely used in smart phones, wearable devices, walkie-talkies, power tools, hand-held vacuum cleaners, sprayers, solar street lamps, Bluetooth speakers, low-power energy storage and many other fields. After the completion of the acquisition, the company will form a positive complementary relationship with Chuangxin Micro in the existing product categories, customer resources and sales channels, so as to achieve effective business integration, meet the diversified needs of customers, and enhance market competitiveness.
Investment suggestion: the company's product models and downstream applications continue to enrich, maintaining the "buy" rating. We expect the company's 2023-2025 net profit to be 0.86x304max 479 million yuan, year-on-year growth rate-68pm "253pm" 57% ActEPS is 0.72pm 2.53x3.99, corresponding to the stock price on August 11, 2023 PE is 304x86x55x respectively. The company's product models and downstream applications continue to enrich, maintaining the "buy" rating.
Risk tips: new product research and development is not as expected; customer verification is not as expected; demand is not as expected; the risk of acquisition failure.