Events:

The company released its semi-annual report of 2023, with operating income of 395 million yuan in the first half of 2023, an increase of 5.01% over the same period last year, a net profit of 50 million yuan, an increase of 15.52% over the same period last year, and a net profit of 44 million yuan, an increase of 13.31% over the same period last year.

Q2 performance remains relatively stable

According to the Q2 single quarter in 2023, the income was 220 million yuan, an increase of 9.71% over the same period last year, the net profit of homing mother was 26 million yuan, an increase of-0.42% over the same period last year, and the gross profit margin and net profit margin were 30.08% and 11.93%, respectively. the year-on-year changes were-1.36% and-1.43% respectively, and the month-on-month changes were 0.81,1.62% respectively. The sales expense rate, management expense rate and R & D expense rate are 4.98%, 7.10% and 5.42% respectively, and the year-on-year changes are 0.14%, 0.35% and 1.30% respectively.

A number of semiconductor advanced packaging materials have been verified by key customers. As a forerunner in the domestic high-end electronic packaging materials industry, the company strengthened its investment in various frontier fields in the first half of 2023 and continued to focus on key technology materials. In the field of integrated circuits, the company's chip solid glue, wafer UV films and other products continue to be supplied in bulk by a number of well-known integrated circuit closed testing enterprises in China.

At the same time, chip-level bottom filling adhesive, Lid frame bonding materials, chip-level thermal conductive interface materials, DAF film and other products are verified and tested, among which Lid frame bonding materials have been verified by domestic head customers, and small batch orders have been obtained and shipped; some models of chip-level bottom filling adhesive, chip-level thermal conductive interface materials and DAF film materials have been verified by key customers.

Earnings forecast, valuation and rating

We estimate that the company's operating income from 2023 to 2025 will be 12.36 billion yuan, respectively, with a year-on-year growth rate of 33.15%, 37.50%, 23.67%, and 1.62, 2.44 / 338 million yuan, respectively. the year-on-year growth rate was 31.65% 50.93% and 38.38%, respectively. The 3-year CAGR is 40.09% and the PE is 1.140.72 and 2.38RMB respectively, and the corresponding EPS is twice as much as that in 49-32-23. In view of the fact that the company is one of the domestic leaders in semiconductor packaging electronic adhesive, we give the company 50 times PE in 24 years, with a target price of 85.91 yuan, maintaining a "buy" rating.

Risk tips: macroeconomic fluctuations, capacity expansion is not as expected, integrated circuit packaging materials verification progress is not as expected, major customer concentration and other risks.