Event: the company released its 2023 half-yearly results report. In the first half of 2023, the revenue was 61 million yuan, an increase of 34.57%, and the net profit of returning to the mother was 1 million yuan, an increase of 108.91%.
Main points of investment
With the rapid growth of revenue and profit, the company's production capacity has increased sharply: in 2023, H1's revenue was 61 million yuan (up 34.57% from the same period last year); the net profit from its parent was 1 million yuan (up 108.91% from the same period last year), turning losses into profits; and the gross profit margin was 34.29% (down 7.7pct from the same period last year). Of this total, the Q2 quarter operating profit was 14 million yuan (an increase of 223.19% over the same period last year), and the return net profit was 11 million yuan (an increase of 250.36% over the same period last year). The total fixed assets of 2023H1 Company is 182 million yuan, a substantial increase of 3008.05% over the end of last year, which is due to the conversion of projects under construction to fixed assets. The company's current production capacity has increased, and there is a broad space for future performance growth. The sales cost of 2023H1 is 4 million yuan (up 17.76% over the same period last year), indicating that the company is actively expanding the existing market, which will help the company to improve its future performance. And the company 2023H1 contract debt of 40 million yuan, the number of orders-on-hand is sufficient.
R & D expenses increased by 44.44%, and the company was selected as the fifth batch of specialized new "little giant" enterprises: 2023H1 increased its investment in scientific research and actively developed future performance growth points, with R & D expenses reaching 24 million yuan, an increase of 44.44% over the same period last year, accounting for 39.10% of business revenue. As of June 30, 2023, the company had 82 R & D personnel, accounting for 32.16% of the total number of the company, an increase of 21 people over the end of the previous year, 102 patents of various types and 92 computer software copyrights. In July 2023, the company announced that it was selected into the fifth batch of special new "Little Giant" enterprises of the Ministry of Industry and Information Technology, which reflects that the company has strong development potential and helps the company to continuously optimize its brand image and enhance its market competitiveness.
Optoelectronic reconnaissance + military robot twin-engine drive, military and civilian cooperation to help the company's development: according to Markets and Markets data, the global military optoelectronic equipment market is expected to be $7.8 billion in 2023 and grow to $9.5 billion in 2028, CAGR=4.0%. The company is the leading supplier of optoelectronic reconnaissance equipment in China, and a number of models rank first in the military public bidding, with technological leadership, and under the background of the strategy of revitalizing the army through science and technology, the country's procurement of unmanned and information-based weapons and equipment will be strengthened, and the future market prospect is broad. In addition, the company is actively expanding the civilian market to meet the needs of all kinds of high-end users for night vision optoelectronic equipment and special robots, and is expected to be gradually applied in transportation, medical and many other industries in the future.
Profit forecast and investment rating: based on the high prosperity of the military industry during the 14th five-year Plan period, and considering the company's dominant position in the field of special robots, we maintain our previous forecast that the homing net profit from 2023 to 2025 is expected to be 1.54 trillion yuan respectively, corresponding to the PE of 55-36-26, maintaining the "buy" rating.
Risk tips: 1) the risk of military R & D and innovation; 2) the risk of loss of license qualification; 3) the risk of fluctuation of military orders.