Support the main points of rating
The general environment under pressure does not change Q2 revenue month-on-month growth, performance turnaround. The company's 23H1 operating income is 1.583 billion yuan,-12.01% compared with the same period last year, and the return net profit is 10 million yuan, 94.05% compared with the same period last year, deducting 3 million yuan from non-return net profit,-98.32% from the same period last year. In a single quarter, the company's Q2 operating income was 840 million yuan, year-on-year-10.47% / month-on-month + 13.17%, year-on-year net profit 14 million yuan, year-on-year-84.26% / month-on-month return to profit, deducting non-return net profit of 10 million yuan, year-on-year-88.26% / quarter-on-month return to profit In terms of profitability, the company's 23H1 gross profit margin is 17.27%, year-on-year-6.68pcts, net profit rate 0.60%, year-on-year-8.34pcts, deducting non-net profit rate 0.17%, year-on-year-8.52pcts. The above changes are mainly due to the low market demand for PCB due to the impact of macroeconomic downturn and high inflation, and the company is also facing the climbing of factory capacity in Dongcheng Phase IV and the intensification of industry competition. The company continues to expand market share and customer base, increase efficiency and reduce costs, and finally achieve Q2 revenue growth, performance turnaround profit.
New products and new customers are continuously imported. In the ① communication industry, the company's 112G PCB products for high-speed switches, routers and high-speed optical modules are expected to achieve mass production this year; in the ② server industry, the company has successfully produced a variety of PCB for AI server products, and some projects have entered the stage of mass production. ③ automotive electronics industry, the company entered a number of well-known automotive customer supply chain, car orders increased steadily, while in self-driving, intelligent cockpit, power energy and other areas of cooperation with customers to develop related products, products gradually made batch progress.
Dongcheng Phase 4 completed the first phase of production capacity climbing, and Ji'an Phase II project was carried out in an orderly manner. The layout of the company in terms of production capacity has achieved preliminary results: Dongcheng Phase IV plant has completed the first stage of capacity climbing, production capacity reached the first stage planning capacity, and gradually introduced high-end HDI products, while strengthening the factory's intelligent manufacturing capacity, actively build smart factories; Ji'an Phase II project products are mainly located in the middle and high-end automotive electronic boards, and are currently being built in an orderly manner in accordance with the plan.
Valuation
Taking into account the company's long-term production capacity layout and new product planning, we estimate that the company will achieve an income of RMB 3.854 million and a net profit of RMB 3.47 million in 2025, respectively, and its PE in 2023-2025 will be 18.8 pm, 13.5 times that of 25.1 max, respectively. Maintain the buy rating.
Main risks faced by rating
The industry competition aggravates the risk, the new product launch falls short of the expected risk, the macroeconomic fluctuation risk.