Event: the company announced that its revenue in the first half of 2023 was 181 million yuan, down 38% from the same period last year, and its net profit was 29 million yuan, down 76% from the same period last year.
The company's gross profit margin rose against the trend. 2023Q2, the company achieved revenue of 105 million yuan, down 21% from the same period last year, narrowing the decline compared with the previous two quarters; month-on-month growth of 38%, indicating a sound repair on the revenue side. The company's 23Q2 gross profit margin was 50.1%, an increase of about 1.9% from the previous month. In the first half of 2023, the revenue of the company's signal chain products was 88 million yuan, with a gross profit margin of 57.3%; the revenue of power management products was 93 million yuan, with a gross profit margin of 41.7%.
The share of corporate signal chain revenue increased from 46 per cent in 2022 to 49 per cent of 23H1, making a positive contribution to gross profit margins.
The company's new power management products will be introduced into customers of major mobile phone brands. The company continues to expand its product matrix in the first half of the year, and 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 the power supply around the camera, and will be widely used in customers of major mobile phone brands this year; the ultra-high bandwidth analog switch with 11GHz will be extended to head communication customers. Prior to this, the company's low-power operational amplifier products successfully entered Qualcomm Inc's flagship platform SM8475. With the rich product matrix of the company, the product value of the company in mobile phone customers will gradually increase.
Actively lay out the field of automotive electronics, and form a series of solutions for door and window control and headlights in the future. Recently, the company has increased its layout in the field of automotive analog chips, and launched the first ultra-high-speed analog switch of 5.8GHz, the first domestic 15A H bridge DC motor drive product for automobile body control, gauge operational amplifier, voltage regulator and other products. In the direction of new product research and development, the company develops larger current DC motor drive to realize the layout of motor drive multi-series products, as well as supporting motor current sampling signal chain products; product R & D layout will also be carried out along the full range of headlights solutions (including taillights, headlights, atmosphere lights, etc.). Based on the company's current layout, it is expected to form a full range of solutions for door and window control and headlights in the future.
High-speed and high-precision signal chain products expand the notebook and server market. In terms of signal chain high-speed products, a number of USB redriver products supporting USB3.1 5Gbps/10Gbps will be released in the second half of this year, and the company will actively explore the product layout of USB retimer. In terms of high-precision products, the company will release 3x4-channel high-precision temperature sensors in the second half of the year, which can be widely used in servers, base stations, notebook computers and other markets, and actively layout the ADC digital-to-analog converter product series for high-precision power testing in automotive, server and other markets. Through the layout of high-speed and high-precision signal chain products, the company is expected to expand its revenue scale in the notebook and server markets.
Investment advice: taking into account the recovery of downstream demand and inventory adjustment will take time, we revise the profit forecast. It is estimated that the revenue of the company from 2023 to 2025 will be RMB 805x10m, and the net profit of return to the mother will be RMB 2.98 billion, respectively, and the corresponding PE will be twice as much as that in 71-38-27. The company's simulation products have technical characteristics, break into major international customers, and expand car regulations, servers and other new areas to maintain the "buy" rating.
Risk hint: the company's new product research and development progress is not as expected, demand is not as expected, competition aggravates the risk.