Event
The company released its semi-annual report in 2023, according to the announcement, the company's 23H1 realized 612 million yuan in revenue, down 38.68% from the same period last year; realized 14 million yuan in net profit from home, down 94.01% from the same period last year; deducted non-return net profit from-30 million yuan, down 115.42% from the same period last year; gross profit margin 54.74%, net profit 2.30%.
23Q2, the company achieved a quarterly income of 305 million yuan, a decrease of 45.16% over the same period last year, a decrease of 0.65% compared with the same period last year; a net profit of 12 million yuan per quarter, a decrease of 91.33% over the same period last year, an increase of 500.00%; and a net profit of-11 million yuan per quarter, a decrease of 131 million yuan over the same period last year, an increase of 8 million yuan over the previous year; gross profit margin of 51.61%, a month-on-month decrease of 6.24pct, and a net profit rate of 4.08%.
In terms of inventory, by the end of the reporting period, the company's inventory was about 365 million yuan, an increase of 27 million yuan compared with the end of 23Q1. In terms of inventory turnover days, by the end of the reporting period, the company's inventory turnover days were about 213.09 days, which was about 5.46 days less than that at the end of 23Q1.
Affected by the weak market climate, the company's 23H1 revenue has declined affected by the end-market boom, customer demand has declined, and the company's 23H1 revenue has declined. Of this total, the revenue from the signal chain was about 481 million yuan (78.53% of the revenue), down 31.03% from the same period last year, and the revenue from power management was about 128 million yuan (20.85% of the revenue), down 57.63% from the same period last year. We believe that the main reason for the relatively larger decline in revenue from the company's power management business is that the market for power management chips is more open and competitive.
The market competition intensifies, and the company's profitability is under pressure in the short term.
In terms of gross profit margin, the company's 23H1 gross profit margin is about 54.74%, which is 51.61% lower than the same period last year, and 6.24pct is lower than the same period last year. This is mainly due to the lack of terminal consumption power and the destocking of the industry and terminal market, which leads to increasing market competition. 23Q2 Company achieved a certain increase in quarter-on-quarter net profit compared with the previous quarter, mainly due to the large increase in other income and fair value change net income of the company 23Q2. We believe that with the gradual recovery of terminal demand in 23Q4, the company's performance is expected to improve as the market recovers.
Continue to open up new areas and new markets, promote their own market share and actively expand industrial control, automotive, photovoltaic, energy storage and other markets, continue to improve and expand the product line.
In the field of signal chain chips, the company has stepped up efforts to launch automotive-grade product chips and a full range of automotive-grade CAN transceivers for mass production; in the field of power management chips, the company has launched a number of new products in 23H1, such as linear voltage regulator TPL8033, voltage reference chip TPR50 series, automotive push-pull transformer driver chip TPM650xQ series and so on. In the field of embedded processors, the company's first MCU product is in the engineering sample verification stage, the preliminary functional verification results meet the design goals, and some indicators reach the extension goals. With the enrichment of the company's product line, the market share is expected to further increase.
The company intends to acquire Chuangxin Micro and continue to move towards a comprehensive analog chip manufacturer. Its main products include battery management chips and power management chips. The products have been successfully introduced into first-class customers such as audio transmission, OPPO, VIVO, XIAOMI, Walmart Inc and used in large quantities. As the company and Chuangxin Micro are both analog chip design enterprises, the two sides have collaborative space in product categories, technology accumulation and customer resources. In terms of product categories, the company can quickly enrich and improve the product line of battery management and power management chips through the acquisition of Chuangxin Micro, so as to better meet the diversified needs of customers and enhance market competitiveness; in terms of technology research and development, the company can expand its R & D team and enhance its R & D strength through the acquisition of Chuangxin Micro; in terms of customer resources, the company can quickly cut into the field of consumer chips through the acquisition of Chuangxin Micro to broaden the coverage of end customers. If the acquisition is successful, it is expected to accelerate the improvement of the company's business scale and enhance the company's sustainable operating ability and market competitiveness.
Investment suggestion
We estimate that the company's net profit from 2023 to 2025 will be RMB 335 million for 101Universe 265Universe, corresponding to 259.02Universe 98.70Unix 78.23 times PE, maintaining the "overweight" rating.
Risk hint
Downstream demand is lower than expected, market competition pattern, new product research and development is less than expected risk.