Event: on August 21, 2023, the company released its semi-annual report of 2023. In the first half of 2023, the company achieved revenue of 5.024 billion yuan,-19.20% compared with the same period last year, and net profit of 582 million yuan, + 3.28% compared with the same period last year.
The company's Q2 performance is under short-term pressure. 2023Q2 achieved a revenue of 2.359 billion yuan in a single quarter, compared with 3.359 billion yuan in 2022Q2,-29.79% in the same period last year, and 274 million yuan in net profit compared with 2.665 billion yuan in 2023Q1,-11.48% in 2023Q2,-18.86% in 2022Q2, and-11.04% in 2023Q1. Revenue and profit are under short-term pressure.
The connection business of the company is greatly disturbed, and the perceived business is growing rapidly. From a business point of view, 2023H1's intelligent manufacturing business revenue of 1.473 billion yuan,-9.53% compared with the same period last year, is mainly due to the decline in 3C electronics and other areas; the company continues to open up new energy vehicles, shipbuilding, rail transit, construction machinery and other key industry markets, and is expected to contribute incremental performance in the future. The revenue of the connection business is 1.837 billion yuan,-43.74% compared with the same period last year, which is mainly due to the reduction of the delivery scale of the network terminal business under the influence of the 5G construction cycle; at present, the company delivers a full range of optical modules of 400G and below in batches, entering a number of leading Internet manufacturers at home and abroad; 5G business wireless optical module product shipments to maintain the industry's leading The full range of 10G PON products in the access network service are delivered in batches, and the national production plan is replaced. The next generation 25G PON optical module products have been jointly debugged with customers, and 50G PON starts the product layout. The revenue of sensor business is 1.461 billion yuan, which is + 45.31% compared with the same period last year. Shipments of PTC heaters for new energy vehicles increased by 107% compared with the same period last year, and shipments of on-board temperature sensors were + 46% compared with the same period last year. Air quality sensors, light and rainfall sensors, pressure sensors and other products were accelerated to be introduced into the upstream and downstream industrial chains of photovoltaic energy storage, power batteries, motor systems, charging guns / seats, etc. The revenue of laser holographic anti-counterfeiting business is 194 million yuan,-34.27% compared with the same period last year.
The company's profitability has improved significantly, and R & D investment has been continuously increased to consolidate the accumulation of technology. The company's 2023H1 gross profit margin reached 22.80%, an increase of 4.60pcts compared with 18.20% in the same period in 2022 and 3.64pcts higher than the 19.12% in 2022. From a quarterly point of view, the company's gross profit margin has continued to improve from 14.79% of 2021Q4 to 24.64% of 2023Q2. We believe that it is mainly due to the structural optimization of the company's main business and downstream applications.
2023H1 invested 300 million yuan in R & D, compared with 237 million yuan in 2022H1 + 26.60% last year, and continued to increase R & D investment in new technologies and products to consolidate technology accumulation.
Investment suggestion: we believe that the follow-up company is expected to take the leading position by virtue of its capacity advantage and price advantage. Under the catalysis of digital economy / AI, we are optimistic about the volume of high-end products and overseas expansion. We expect the company's 23-25 year net profit to be 1.299 billion yuan / 1.696 billion yuan / 2.043 billion yuan respectively, and the current market capitalization corresponds to PE as 24x/18x/15x. Maintain the recommended rating.
Risk tips: the epidemic affects the delivery of the project; the industry competition intensifies leading to a downward gross profit margin; and the overseas market expansion of optical modules is not as expected.