Event: on August 11, Diowi released the 2023 mid-term report that the company's 2023H1 realized operating income of 181 million yuan, YoY-38.37%, returned to its mother net profit of 29 million yuan, YoY- 75.77%; excluding equity incentive fees (22 million yuan), the net profit returned to its mother was 50 million yuan, YoY-58.18%.
The performance is under short-term pressure, and the adjustment of product structure helps to stabilize the gross profit margin. Affected by the global economic downturn, weak domestic and foreign market demand and other factors, the company's operating performance is under pressure. Q2 achieved revenue of 105 million yuan, YoY-20.54%, + 38.95%, basically returning to the 22-year Q3 level. The company's product structure is optimized, the gross profit margin keeps rising steadily, and brings a significant improvement in net profit, Q2 gross profit 50.06%, month-on-month + 1.87pct, return to the mother net profit of 18.9846 million yuan, YoY-65.59%,QoQ+90.12%.
Xu Li Automotive Electronics + server new track, continue to optimize the product layout. The company persists in research and development in consumer electronics, industrial control and security, lighting, communication equipment and other advantageous areas, and launches multi-channel LDO PMIC products and 11GHz ultra-high bandwidth analog switches to continue to increase market share. In addition, the company continues to make efforts in the fields of automotive electronics and servers, launching a series of new products. In terms of automotive electronics, the company launched new products of ultra-high-speed analog switches and DC motor drives, both of which are the first in China; it also launched a series of operational amplifiers and voltage regulators to enrich the range of automotive specification-level products. On the server side, the company has launched a full range of switch solutions, including high-bandwidth PCIE3.0 switches and 8-stroke 4-channel I2C switches.
The signal chain and power management are in bloom, and a number of bright new products are waiting to be released. The company's signal chain and power management products continue to work on two lines. The operating income of 2023H1 signal chain products was 87.8032 million yuan, accounting for 48.63%, while that of power management products was 92.7654 million yuan, accounting for 51.37%. In terms of signal chain, the company's products extend to high-speed and high-precision direction, in high-speed USB redriver,USB retimer, high-precision ADC digital-to-analog converter and temperature sensor product line active layout. A number of USBredriver and high-precision temperature sensors will be released in the second half of the year. In terms of power management, the company has made a breakthrough in the field of motor drive and LED lighting driver. In terms of motor drive, brushed DC motor drive chips are introduced to continue to improve the layout of motor-driven multi-series products; in terms of headlights, new products are launched in the field of taillights, headlights, atmosphere lights and other headlights, committed to creating a full range of solutions for headlights.
Investment suggestion: we expect the company's annual return net profit in 2023-24-25 to be 1.02 yuan 1.55 / 217 million yuan respectively, and the corresponding current price PE is respectively times that of 66-44-31. We are optimistic about the continuous expansion of the company in car regulations, servers and other fields, with the expansion of intelligent lighting drivers, motor drivers and other products, there is no danger of growth. For the first time, give a "recommended" rating.
Risk tips: the risk of insufficient iteration of product research and development; the risk of lower-than-expected downstream demand; the risk of market competition.