Event: the company released the 2023 China report.
The growth rate of Q2 revenue has slowed down, and contract liabilities have greatly increased 2023H1's operating income of 1.404 billion yuan, + 41% year-on-year; of which Q2 achieved revenue of 689 million yuan, + 20% year-on-year, and income growth has slowed down. We judge that it is mainly due to the delay in the recognition of revenue from new products of some consumer electronic devices. As of the end of 2023H1, the company's contract liabilities and inventory were 9.58 yuan and 1.731 billion yuan respectively, which were + 168% and + 29% respectively compared with the same period last year, which verified that the company had sufficient orders on hand, and its performance in the second half of the year is expected to maintain rapid growth. Looking forward to 2023, on the one hand, Apple Inc is expected to have greater innovation, periscope cameras, smart glasses and other consumer electronic equipment demand, on the other hand, semiconductor measurement equipment into the release period, the company's newly signed orders are expected to continue high growth. With the delivery of related orders, the company's revenue side is expected to achieve rapid growth.
Economies of scale-the government subsidy has increased significantly, and the profit side has exceeded the forecast guidance 2023H1's net profit of 104 million yuan, + 123% compared with the same period last year, exceeding the performance forecast guidance (0.86-98 million yuan), of which Q2 is 31 million yuan, + 51% year-on-year. 2023H1 realized deduction of non-return net profit of 71 million yuan, + 79% compared with the same period last year, which also exceeded the performance forecast guidelines (0.53-65 million yuan), of which Q2 was 18 million yuan, + 2% compared with the same period last year. 2023H1's net sales interest rate is 7.60%, year-on-year + 2.42pct; deducting non-sales net interest rate is 5.05%, year-on-year + 1.07pct, the profit level has been improved. 1) Gross profit margin: the gross profit margin of 2023H1 sales is 40.39%, which is slightly higher than the same period of last year + 0.34pct.
2) expense side: the expense rate during 2023H1 is 32.72%, which is significantly lower than that of the same period last year (- 3.04pct), which is mainly due to scale effect and is the main reason for the increase of net interest rate. The rates of sales, management, finance and R & D expenses are-0.48,3.39, + 0.83 and-2.71pct respectively compared with the same period last year. 3) Government subsidies: the amount of government subsidies included in 2023H1's profits and losses in the current period is 42.27 million yuan, and 2022H1 is 8.27 million yuan, which is + 411% compared with the same period last year, which has a significant positive effect on the profit side performance in the first half of the year.
Consumer electronic equipment has the potential for continuous expansion, semiconductor measurement equipment to accelerate domestic replacement as the leading enterprise of consumer electronic equipment, the company horizontally expand semiconductors, new energy and other fields.
1) Consumer electronic devices: Apple Inc's fuselage is expected to have a great innovation in 2023, the periscope camera will lead to a larger demand for equipment, superimposed smart glasses, the company is expected to benefit deeply. 2) Semiconductor measurement equipment: the acquisition of Japanese Optima in 2019 officially cut into the field of semiconductor volume / testing equipment, while stabilizing the global competitiveness of the wafer field, focus on developing wafer manufacturing customer groups, which is expected to fully benefit from the wave of domestic substitution. 3) New energy equipment: Lingou Technology was acquired in 2018, cutting into automotive automation production lines and battery production equipment, while laying out photovoltaic module equipment to further open up the growth space.
Profit forecast and investment rating: considering that the company has sufficient orders on hand, we maintain the forecast of the company's parent net profit of 4.12,5.65 and 751 million yuan from 2023 to 2025, and the current market capitalization corresponding to the dynamic PE is 19-14-11 times respectively. The company maintains a "buy" rating, taking into account the company's competitiveness in consumer electronics and the growth potential of semiconductors.
Risk tips: risk reduction, profit decline, new business development is not as expected, and so on.