Brief comment on performance
The company disclosed its semi-annual report on August 18, 2023, with revenue of 901 million yuan in the first half of the year, an increase of 7.33% over the same period last year, and a net profit of 96 million yuan,-54.74% over the same period last year. Of this total, 2Q23 achieved a revenue of 498 million yuan, an increase of 6.93% over the same period last year, and a net profit of 64 million yuan,-42.52% over the same period last year.
Business analysis
2Q23 revenue continued to grow month-on-month, and the decline in performance narrowed year-on-year and improved significantly.
In the first half of 2023, the company realized a net profit of 96.06 million yuan,-54.74% compared with the same period last year, and realized a net profit of 76.84 million yuan after deduction, which was-56.02% compared with the same period last year. In the second quarter alone, the company's 2Q23 realized a net profit of 64.3 million yuan,-42.52%, + 100%, 49.44 million yuan,-42.66% and + 80.44% respectively. Due to the slow recovery of downstream demand, MOSFET industry competition continues to be fierce, the company's new 8-inch production line did not maintain a high capacity utilization rate, in order to ensure the sustained growth of operating income and expand market share, the company adjusted the prices of some products. 1H23's comprehensive gross profit margin fell 4.86 pcts2Q23's comprehensive gross profit margin increased 1.24 pcts compared with the first quarter.
During the period of strengthening the cost management of the company, all the operating indicators have been improved, and the progress of the project of raising convertible bonds has been postponed by the depressed demand. During the period of 1H23, the expense rate continued to improve, highlighting the positive response made by the company's management in the face of weak industry demand. According to Wind data, the inventory turnover of 1H23 rose from 0.50E of 1Q23 to 1.09 of 1H23. The turnover of accounts receivable of 1H23 increased from 1.08 of 1Q23 to 2.30 of 1H23 from 0.41 of 1Q23 to 0.86, and the operating indicators continued to improve. In order to cope with the impact of the downturn in downstream demand, the company slowed down the progress of capacity release, according to the company's "postponement of fund-raising investment projects"
According to the announcement, the company will adjust the production time of the power semiconductor "vehicle specification" closure industrialization project from June 30, 2023 to December 31, 2024. We are optimistic about the long-term competitiveness of the company under the IDM model. The recovery of downstream demand, the improvement of the company's capacity utilization, the reduction in the unit cost of the product will help to repair the profit side.
Earnings forecast, valuation and rating
Taking into account the declining prosperity of the industry and based on the forecast of the half-yearly reported grooming rate, we forecast the net profit of the company from 2023 to 2025 to 2.93 soybean 5.99 / 809 million yuan (former value: 4.15 shock 6.31 / 823 million yuan), corresponding to EPS of 0.4max 0.8x1.1 yuan, the current price of the company's stock corresponds to the valuation of PE in 43-21-16, maintaining the "buy" rating.
Risk hint
The risk of less than expected technology iteration and product upgrading; the risk of increased market competition; the risk of dependence on imported equipment; the risk of convertible debt-to-equity pressure.