Event
On August 11, 2023, the company released its half-yearly report on 2023. 2023H1 achieved a revenue of 180 million yuan,-38.37% compared with the same period last year, and a net profit of 30 million yuan,-75.77% compared with the same period last year. Excluding the influence of share payment fees, it realized a net profit of 50 million yuan,-58.18%.
In the second quarter alone, the revenue was 105 million yuan, with a month-on-month ratio of + 38.95%, a net profit of 20 million yuan and a month-on-month ratio of + 90.12%.
Main points of investment
Q2 month-on-month improvement is obvious, product structure adjustment, gross profit margin rebounded. In the first half of 2023, the downstream market demand was weak, 2023H1 achieved revenue of 180 million yuan, year-on-year-38.37%; net profit of 30 million yuan,-75.77%; excluding the influence of share payment fees, realized net profit of 50 million yuan,-58.18%; by product line, the operating income of signal chain products was 90 million yuan, accounting for 48.63%, and the gross profit margin was 57.28%. The operating income of power management products is 90 million yuan, accounting for 51.37%, and the gross profit margin is 41.7%. In a single quarter, Q2 achieved a revenue of 105 million yuan, a month-on-month ratio of + 38.95%, a net profit of 20 million yuan and a month-on-month ratio of + 90.12%. In terms of gross profit margin, the company actively adjusted its product structure. Q2 comprehensive gross profit margin was 50.06%, an increase of 1.87%. With the release of high-value new products in the second half of the year, the comprehensive gross profit margin for the whole year is expected to remain above 50%.
We will continue to increase investment in research and development and introduce outstanding talents. The company continues to expand the layout of application areas, increase direct investment in R & D projects and introduce excellent R & D and technical personnel. In the first half of the year, the company's R & D investment reached 50 million yuan, accounting for 28.42% of the current business income; as of June 30, the number of R & D technical personnel increased to 136, an increase of 67.90% over the same period last year, and R & D technical personnel accounted for 55.51% of the company's total employees. Among the R & D personnel, 56 were with doctoral or master's degrees, accounting for 41.18%. In addition, the company implements an equity incentive plan to bind core technical personnel.
Deep ploughing high-speed, high-precision product direction, multi-market layout. The company continues to innovate in the direction of high speed, high precision, low power consumption and high power density, broadening the product matrix and multi-market layout. In the field of mobile phones, the newly launched multi-channel LDO PMIC products mainly highlight the characteristics of high current, high PSRR, ultra-low output voltage and ultra-low noise, which provide rich high current products for Camera peripheral power supply. In the automotive field, the company has launched a series of products, including the ultra-high-speed analog switch of the first gauge-level 5.8GHz in China, 15A H bridge DC motor drive controlled by the car body, a series of operational amplifiers at the gauge level, and a full range of solutions for headlights, etc. In the server field, the company has launched a full range of switching solutions, including PCIE3.0 switches with high bandwidth of 11GHz, I2C switches with Reset function or I2C switches with 4 channels with interrupt input. In addition, a number of high-precision temperature sensors supporting USB3.15Gbps/10Gbps with USB redriver and 3ax 4 channels will be released in the second half of this year.
Investment advice:
We expect the company to have a 2023-2025 net profit of 1.0 pound 1.4 billion and maintain a "buy" rating.
Risk Tips:
The introduction of new products is not as expected; the recovery of downstream demand slows; market competition intensifies; downside risks in the semiconductor cycle.