23Q2's quarter-on-quarter net profit increased by 42.92% over the previous quarter. Fuchuang Precision is the leading manufacturer of precision parts of semiconductor equipment in China, and it is also one of the few precision parts manufacturers in the world that can be mass-produced and used in 7-nanometer process semiconductor equipment. 23H1 income was 829 million yuan, up 38.61% from the same period last year; net profit from home was 95.6821 million yuan, down 4.80% from the same period last year; and net profit after deducting non-return was 25.1943 million yuan, down 66.05% from the same period last year. From a quarterly point of view, 23Q2 income was 487 million yuan, up 53.54% from the same period last year and 42.69% from the previous year; the net profit returned to the mother was 56.294 million yuan, down 5.72% from the same period last year and 42.92% from the previous quarter; and the net profit after deducting non-return was 21.5557 million yuan, down 50.48% from the same period last year and an increase of 492.42% from the previous month.
Many factors lead to the decline of net profit after deduction, which is a reserve for medium-and long-term growth. According to the company's 2023 semi-annual report, the company's revenue growth is mainly due to the growth of demand in the domestic semiconductor market and the demand for localization of parts and components. The reasons for the decline in net profit after deducting non-return include an increase of 24 million yuan in labor costs caused by the advance reserve of talents, equipment and other resources such as Nantong / Beijing factories, an increase of about 11 million yuan in expenses such as depreciation and amortization, and a substantial increase in the proportion of module product income. Increase investment in research and development and so on.
The revenue scale of module products is growing rapidly. According to the split of product structure, the product income of 23H1 module is 345 million yuan, an increase of 188.91% over the same period last year, accounting for 42.24% of the main business income, which is significantly higher than the 20.24% of the same period last year. The income of process parts and structural parts is 195 million yuan and 203 million yuan respectively, accounting for 23.91% and 24.90% of the main business income respectively. The revenue of gas pipeline is 73.0783 million yuan, accounting for 8.95% of the main business income. The company's product structure continues to change from single-piece customization to modular optimization, the scale of module products is growing rapidly, and the comprehensive competitiveness is further enhanced.
Continue to increase investment in research and development. The company continued to increase R & D investment, 23H1 R & D investment totaled 91.8097 million yuan, an increase of 98.80% over the same period last year, accounting for 11.08% of the operating income of Prida. As of the end of the year, the number of 23H1 R & D personnel was 421, an increase of 82.25% over the same period last year. According to the Fortune Precision 2023 semi-annual report
According to the disclosure of the projects under study, the 23H1 projects under study include high-performance coating process development, core functional components development and gas transmission system process technology development projects, all of which are in the stage of continuous research and development.
Profit forecast and valuation. We predict that the company's 2023E-2025E revenue will be 2.018 billion yuan, 2.725 billion yuan and 3.718 billion yuan, up 30.68%, 34.99% and 36.47% year-on-year, and the net profit will be 270 million yuan, 363 million yuan and 520 million yuan, up 9.79%, 34.48% and 43.46% over the same period last year. By using the PS valuation method, combined with the average value of PS (2023E) 12.21 times of the comparable company valuation, the company is given PS (2023E) 10x-12x, corresponding to a reasonable market value range of 20.183 billion yuan to 24.219 billion yuan, and a corresponding reasonable value range of 96.54 yuan per share to 115.85 yuan per share, maintaining a "neutral" rating.
Risk hints: the progress of production expansion of downstream wafer factories is delayed, macroeconomic fluctuations affect the demand for end products, market competition intensifies, the progress of technological research and development is not as expected, and the conflict between China and the United States intensifies.