Event: on August 18, the company released its 2023 semi-annual report. In the first half of 2023, the company achieved operating income of 330 million yuan, down 23.12% from the same period last year, and realized net profit of-17.7215 million yuan, down 153.88% from the same period last year.
The 2023H1 performance is under pressure and is optimistic about the performance growth of the high-speed optical module AWG: in 2023, the Q2 company achieved revenue of 181 million yuan, down 22.43% from the same period last year; the net profit returned to the home was-14.5283 million yuan, down 244.63% from the same period last year. The change in performance in the first half of the year is mainly due to the decline in market demand and the price reduction of some products; at the same time, high-speed optical module AWG and related AWG have been shipped in small quantities but have not yet contributed profits. From a business perspective, revenue from H1 optical chip and device products in 2023 was 150 million yuan, down 23.56% from the same period last year; revenue from indoor optical cable products was 87 million yuan, down 23.72% from the same period last year; and revenue from cable materials products was 83 million yuan, down 25.41% from the same period last year. In terms of expenses, the sales expenses of company H1 increased by 12.27% in 2023 compared with the same period last year, mainly due to an increase in business expenses; management / financial expenses decreased by 1.99 / 61.23% over the same period last year, and the rate of sales / management / R & D expenses increased by 1.18/2.02/5.85pct compared with H1 in 2022, and the overall expense rate increased significantly.
Passive + active dual-platform advantages highlight, sustained high level of R & D investment: in 2023, H1 company R & D expenditure increased by 26.30% compared with the same period last year; R & D expenditure rate increased 5.85pct compared with the same period last year, which is at a high level in the industry. The company's passive + active dual platform advantage is becoming more and more prominent, and it has become a scientific and technological enterprise with core competitiveness in the domestic optical communication industry. Among them, in terms of passive chips, the lidar splitter chip has completed high-power verification; for 400G/800G requirements, ultra-wide bandwidth AWG chips have been developed in the backbone network and completed sample delivery, DR4/DR8 optical components have been developed in the data center and small batch supply has been achieved; silicon dioxide-based photonic chip manufacturing technology has been developed, which can provide corresponding services to the outside world. In terms of active chips, remarkable breakthroughs have been made in laser chips for gigabit access networks, high-power laser chips for silicon optics, laser chips for lidar, semiconductor optical amplifiers (SOA) and so on. Among them, XGS PON antireflection 10G1270nm DFB chips are sold in bulk; in terms of high-speed chips, 50G PON EML and PAM4100G EML are under research and development, and 25G 1286nm DFB lasers are sent to customers for verification. We believe that as the company continues to increase R & D investment and technological innovation, deepen the advantages of passive + active dual platforms, and accumulate the R & D advantages of chip industrialization technology, the company's core competitiveness is expected to be gradually enhanced.
The customer structure has been continuously optimized, and it is proposed to participate in the acquisition of AOI optical communication related assets to open up room for long-term growth: in the domestic market, the company continues to strengthen business cooperation with mainstream system equipment business customers, and gradually open up new customers through new products such as AWG chips and DFB laser chips; in the international market, H1 has successively opened up international optical module customers in 2023, and the sales scale of overseas customers in the previous stock is also expanding. In addition, the company plans to participate in the acquisition of AOI China assets and related businesses through an investment in Yuhan Optoelectronics in July, which aims to promote the development of the company's optical communication module and equipment business and facilitate the continuous integration of the upstream and downstream of the industrial chain. We believe that the company actively expand overseas markets, optimize the customer structure, while planning to participate in the acquisition of AOI optical communications business will help the company to open up long-term growth space.
Profit forecast and investment rating: we predict that the company's 2023-2025 return net profit is 0.68 trillion yuan, the current share price corresponding to PE is 88-62-46 times, in view of the company's advanced optical chip supplier, the continuous layout of research and development of high-end products, future performance is expected to achieve rapid growth, to maintain the "buy" rating.
Risk hints: iterative risk of technology upgrading; risk of R & D failure; risk of brain drain of key technologies; risk of aggravation of market competition; risk of macroeconomic and industry fluctuations.