Q2 Revenue was under slight pressure, and net profit was +10.96% year over year

The company released its semi-annual report for 2023, achieving operating income of 279 million yuan, -3.11% year-on-year, and net profit of 38 million yuan, +5.30% year-on-year. Q2 alone achieved operating income of 144 million yuan, -1.77% year on year; net profit of return mother was 115 million yuan, +10.96% year on year. Against the backdrop of slight pressure on revenue due to factors such as the cyclical downturn in semiconductors, the contrarian increase in net profit from the company is mainly due to the company's continued promotion of cost reduction and efficiency, product iteration, etc. Considering that the company's revenue for the first half of the year was under slight pressure, we lowered our performance forecast for 2023-2025. We expect net profit from 2023-2025 to be 1.35 (-0.52) /1.78 (-0.72) /2.14 (-120) million yuan, and the corresponding EPS is 0.52 (-0.20) /0.68 (-0.28) /0.82 (-0.47) yuan/share, respectively. However, given that the company's new product launch growth space is expected to expand, it is promising Long-term development, maintaining a “buy” rating.

The revenue of control units and equipment increased, and the bottom margin of machine vision equipment increased the overall gross margin by product. Looking at the overall gross margin by product, the 2023H1 company's machine vision equipment/control cable components/control units and equipment respectively achieved revenue of 130/0.85/ 0.60 billion yuan, respectively, -0.32%/-19.64%/+31.44% over the previous year. The high increase in control unit and equipment revenue was mainly due to the company's high competitiveness in terms of overall solutions, personalized customization, quality stability and efficiency. In terms of gross margin, affected by factors such as a low base in the same period last year and continued progress in product upgrades, the gross margin of the machine vision equipment business was +3.74% year-on-year, driving the overall gross margin to slightly increase by 1.26pct to 31.64%.

The company, which is rich in customer resources and continues to be launched, is a leading manufacturer of high-end machine vision equipment in the future. It is a leading manufacturer of high-end machine vision equipment in China. It has many key features that are internationally leading, and has successfully become an important supplier to well-known enterprises such as Apple, Huawei, Xiaomi, BYD, BOE, Samsung, and Hikvision. At the same time, the company continues to promote technology research and development. Among them, the AOI inspection equipment for semiconductor sealing and testing has passed industry benchmark customer acceptance; 3D online X-ray inspection equipment was released in March, with the goal of breaking the long-term monopoly of high-end X-ray inspection equipment by overseas companies. It has now entered the customer evaluation stage; self-developed high-speed high-precision dispensers can be used in the semiconductor and electronics manufacturing fields, and has now been developed and entered the marketing stage.

Furthermore, the Malaysian plant is expected to begin trial production at the end of August, further enhancing supply capacity. In the context of abundant customer resources, the gradual release of new products, and the improvement of product supply capacity, the company has more room for development.

Risk warning: risk of loss of major customers; risk of declining product gross margin; risk of increased market competition.