Event: the company released its semi-annual report 2023 on the evening of August 17. In the first half of 2023, the company achieved operating income of 9 million yuan, YoY-93.63%; net profit of 14 million yuan, YoY-59.40%, gross profit margin of 8.25%, a year-on-year decline of 29.46pct, performance stage pressure.
Comments: the delay of the production plan of the superior supporting units has put pressure on the performance, and the R & D investment has been continuously increased.
In a single quarter, 2023Q2 achieved a revenue of 424800 yuan, YoY-99.37%, a net profit of 3.3774 million yuan, and YoY-84.02%. The decline in revenue and profits is mainly due to the postponement of the production plan of the supporting units at higher levels and the lower-than-expected new demand. In terms of profitability, the company's 2023Q2 gross profit margin was-88.62%, down 126.03pct from the same period last year. On the cost side, the company's 2023Q2 sales / management / R & D expenses are 50312.775 million yuan, respectively, which are mainly caused by employee salary, listing intermediary service fees and continuous investment in new product research and development, respectively.
The capabilities of a number of products have been further expanded, the field of military inertial navigation continues to raise competition barriers, and expand new application scenarios such as drones and intelligent shearer. During the reporting period, the company continued to upgrade and improve a number of products. The company continues to carry out advanced research and development of inertial navigation products, using three-axis fiber optic gyroscope to launch a new integrated architecture design; expanding laser gyro inertial navigation products and realizing the delivery of a customer's large-scale UAV application scene; successfully developed high-precision inertial navigation products based on optical fiber ring and larger diameter optical fiber; completed self-developed fiber optic gyroscope serialization product work, DH-G60S fiber optic gyroscope completed product identification. The integrated guidance module of long-range guidance and ammunition has completed the highly integrated design and anti-jamming characteristic verification; developed and designed the electric steering gear system for new miniaturized intelligent ammunition; the forward-looking infrared seeker project has completed the prototype research and development, which is currently in the joint adjustment stage; the development of missile-borne control system has been expanded, and the batch matching customers have successfully participated in the bidding. Actively develop a micro integrated navigation device with large overload and high dynamic environment and test it on the ground outside the city; successfully develop a small MEMS inertial navigation measurement system and deliver it to an aerospace company in batches. Based on the technical advantages of precision guided weapon inertial navigation system, the company continues to expand product categories, tamp competition barriers and enhance the company's long-term growth momentum.
Profit forecast and investment suggestion: science and technology navigation has strong technical advantages in the field of inertial navigation system of domestic long-range guided ammunition. we are optimistic that the company will deeply benefit from the demand for supporting weapons and the cost improvement brought about by the self-production of the core device fiber optic gyroscope. From 2023 to 2025, the company is expected to achieve revenue of 265x3x947 million yuan, return to the mother of net profit of 0.77Uniplex 299 million yuan, corresponding to EPS0.87/2.06/3.40 yuan, maintain the "buy" rating.
Risk tips: military procurement schedule is not as expected, new product research and development risk, industrial supply chain risk