Event description

On August 18, 2023, the company released the "2023 semi-Annual report", which revealed that the company achieved revenue of 306 million yuan in the first half of 2023, an increase of 12.89 percent over the same period last year, and a net profit of 40 million yuan, down 18.92 percent from the same period last year.

The overall business situation is stable, and on-hand orders maintain growth.

In the first half of 2023, the company's overall business situation was stable, downstream demand increased, orders increased; at the same time, the company continued to develop research and development, the market vigorously opened up new customers and new areas, and selected high-value projects to lay a solid foundation for the company's future performance growth. As of mid-2023, the company had on-hand orders of 530 million yuan (including oral orders), an increase of 14.72% over the same period last year.

In terms of R & D technology promotion, the company's R & D personnel continue to increase communication with customers to obtain more new projects with the advantages of new technology, localization and low cost. At the same time, we will continue to increase investment, promote the core competitiveness of the new technology platform, and make continuous progress in a number of technological directions. In the direction of computing control, continue to adapt to the mainstream processor platforms and domestic operating systems, pre-research and verification of a number of new processing platforms, in the field of UAV, successfully installed applications in flight control computer, mission computer, visual navigation computer and other systems. In the aspect of signal processing, the team's AI processing ability is mainly improved, and a variety of mainstream AI network models such as LeNet are run on several mainstream AI platforms. In the direction of mass storage, we completed the optimization of the file system, and began to develop a new file system. In the direction of graphics and images, infrared image readout has mature application, assembly and mass production at 640-512 resolution, and technology pre-research and technology accumulation are completed at 1K resolution.

In terms of market expansion, the company continues to cultivate customers and seek more cooperation opportunities around product lines such as interface control, data processing, signal processing, graphics and images, high-reliability power supply, data acquisition, communication switching and mass storage products. In response to the national equipment "high-quality, low-cost sustainable development" policy, the implementation of low-cost demonstration, low-cost design, low-cost manufacturing, the effect is obvious, has been highly recognized by customers. The company pays attention to the deep cooperation of customers, expands the range of cooperative products, strengthens the horizontal cooperation of different customers and different extension systems of key models, and there is a significant increase in the number of cooperation units and projects of the same model. Around the key units to plan and layout in advance, increase the input of key customers, and increase the company's market share.

In terms of fund-raising projects, with regard to the purchase of new plant, the company formally signed the "Industrial Plant sales contract" with Chengdu Xingcheng Construction Industry Development Co., Ltd. in July, and paid the first payment of 41475472.50 yuan before August 2 in accordance with the contract. The new plant is currently under construction and is expected to be completed by the end of 2023.

Consolidate the position of the industry with technology

After more than 20 years of industry technology and experience accumulation, with embedded computer as the core business, the company has formed a complete set of development and production control process and product quality traceability system. Relying on the core technology, the company is committed to serving the advanced key areas of national defense science, technology and industry, such as equipment system development, and focuses on providing customized embedded computer software and hardware products and solutions. It has rich design, technical reserve, research and implementation experience in the aspects of localization, wide temperature operation, vibration resistance, low power consumption, miniaturization and so on.

As of mid-2023, the company had 41 patents and 168 software copyrights, and won a number of honors and qualifications issued by the state ministries and commissions, Sichuan Province Enterprise Technology Center, Chengdu Enterprise Technology Center, Chengdu New economy 100 key nurturing Enterprises in 2019 and other relevant units.

The company's strong R & D capability has played a decisive supporting role in the development of past performance. At the same time, the company will continue to respond to the trend of industry and customer demand, consolidate its market position and advantages, break through the existing competition pattern, and achieve the same stage competition with domestic first-class enterprises.

The company has strong R & D capability and technical strength, and can provide customers with high-quality solutions and highly reliable products to meet customer needs. at present, the company can provide the development of embedded computer software and hardware products based on various processors at home and abroad. Product functions cover interface control, data processing, signal processing, graphics and images, high reliability power supply, data acquisition, communication exchange and mass storage and other functions. Based on the company's strong technical strength and advanced advantages, the company's products better meet the needs of customers, and the products are successfully applied in airborne, missile-borne and other fields of equipment, fully showing the company's technical strength, the company's R & D advantages are as follows:

In terms of interface control, the company has bus transmission technology based on fibre Channel, and has developed mature independent intellectual property IPcore solutions based on Ethernet, CAN, UART, I2C, GJB289A-97, HB6096-SZ-01 and other interfaces.

In the aspect of data processing, the functions of application layer transmission protocol conversion, data format conversion, application flow control, data analysis and data recording are realized by software, and the functions of data sorting and identification are realized by machine learning algorithm. achieve high-speed matrix transpose, high-speed row and column data access acceleration function.

In terms of signal processing, the company has integrated signal processing and analysis technology and automated testing technology, and can provide signal processing solutions based on FPGA, DSP or GPU. In terms of data processing, the company has embedded high-performance cache management technology, embedded high-reliability hot design technology, embedded multi-core parallel processing technology.

In terms of graphics and image processing, the company has embedded integrated video and image processing technology, image lossless compression technology, artificial intelligence positioning technology, low-power image tracking and recognition technology, image coding and decoding technology, high reliable and high frame rate display technology in national key areas.

In terms of high reliability power supply, the company has embedded power component technology in national key areas, and can customize power modules that meet the test requirements in national key areas according to demands. the module has the characteristics of light weight, small size, high efficiency, strong anti-interference ability and flexible installation mode, which provides high reliability power products for key areas of equipment.

In terms of data acquisition, the company has clock hot backup and automatic fast switching technology, large bandwidth fast frequency hopping technology, multi-channel high precision synchronous acquisition technology, radio frequency direct acquisition technology, frequency agility transceiver technology, fast frequency hopping technology, large bandwidth filtering technology, weak signal amplification technology and weak signal filtering technology and small signal acquisition technology.

In the aspect of communication and switching, the company has embedded multi-protocol high-speed bus switching management technology and the software and hardware design ability of SRIO and PCIE high-speed switching embedded computer module.

In terms of mass storage, the single-board storage capacity reaches TB level, and the read and write speed reaches GB/s level. It has fast heat conduction technology, storage media quick disassembly technology, highly reliable file system technology, mass storage media management technology, and high-speed direct data transmission technology between PCIE endpoints.

Investment suggestion

It is estimated that the company's net profit from 2023 to 2025 will be 1.29,1.71 and 213 million yuan respectively, with year-on-year growth rates of 71.2%, 32.4% and 24.6%, respectively. The corresponding PE were 28.57,21.58,17.32 times respectively. For the first time, coverage gives a "buy" rating.

Risk hint

The downstream demand is lower than expected and the market competition intensifies.