Events:
On August 18, the company released its semi-annual report for 2023. During the reporting period, the company realized operating income of 330 million yuan, down 23.12% from the same period last year, and realized net profit of-17.7215 million yuan, down 153.88% from the same period last year. The net profit was deducted from-32.3494 million yuan, down 238.91% from the same period last year.
The demand of the industry at home and abroad is insufficient, and the three main businesses are affected by the decline in short-term industry demand, and the revenues of the three main business sectors are significantly lower than the same period last year: the revenue of optical chips and devices is 150 million yuan, down 23.56% from the same period last year. It accounts for 46.86% of the total sales revenue, and the revenue of indoor optical cable products is 87 million yuan, down 23.72% from the same period last year, accounting for 27.20% of the total sales revenue. The revenue of cable materials products was 83 million yuan, down 25.41 percent over the same period last year, accounting for 25.94 percent of the total sales revenue. The company's overseas income was 65 million yuan, down 36.13% from the same period last year, accounting for 19.71% of the total income in the first half of the year. We believe that the slowing down of 10G PON network construction by operators, the large-scale construction of 400G OTN, and the fact that the company's product layout in the data center 400G/800G area has not yet generated scale income is the main reason why the company's short-term performance is under pressure.
Focusing on the high-end demand of the data center, the research and development of active passive chips is progressing smoothly, and the company has stepped up its research and development efforts, with R & D investment of 49.2848 million yuan, an increase of 26.30% over the previous year, accounting for 14.94% of the company's operating revenue. The projects under research include CW DFB chip and TOSA device, VOA array chip industrialization project, silicon optical transceiver module engineering research, key technology and technology development of PLC photonic integrated chip, high-power DFB laser and high-speed EML laser chip, some of which have entered the stage of mass production. Especially for the demand of 400G/800G optical module in data center, DR4/DR8 collimator is developed and supplied in small batches; active chip: a high power DFB chip for silicon optical application is developed to achieve power output greater than 100mW at 85 ℃, 25g 1286nm DFB laser is sent to customers for verification, and PAM4 100G EML is under research and development.
Earnings forecast, valuation and rating
We estimate that the company's revenue from 2023 to 2025 will be RMB 933 million (the original value is RMB 11.21), with a year-on-year increase of 3.24%, 19.27% and 18.42%, respectively, and the net profit of return to the mother will be RMB 0.66 million, respectively, and the increase will be 2.22%, 66.99% and 31.33%, respectively. The EPS was 0.14 / 0.24 per share, and the 3-year CAGR was 30.88 per share. Considering the smooth progress in the research and development of passive and active chips in the data center 400G/800G field during the reporting period, and the small batch delivery of some products, we believe that the computing power demand in the data center brought about by AI brings a good opportunity for the company's performance growth, and we suggest that we continue to pay attention to it.
Risk hints: market competition aggravates risks, product research and development falls short of expectations, and international trade disputes aggravate risks.