Main points of investment

The scale of revenue increased steadily, and the net profit turned into profit: in the first half of 2023, the company realized revenue of 628 million yuan, + 81% compared with the same period last year, of which automation equipment income was 476 million yuan, + 125% year-on-year, accounting for 76%, and intelligent manufacturing system revenue was 12 million yuan, year-on-year + 244%, accounting for 24%; the net profit of returning to the mother was 15 million yuan, + 159% compared with the same period last year; and deducting the net profit of non-return to the mother was 15 million yuan, + 153% over the same period last year. 2023Q2's single-quarter revenue was 369 million yuan, + 149% year-on-year, + 43% month-on-month, and net profit was 11 million yuan, + 138% year-on-year, and + 175% month-on-month.

The ability to control fees properly, and the profitability increased significantly: in the first half of 2023, the gross profit margin was 20.5%, year-on-year-4.7pct, of which the gross profit margin of automation equipment was 18.5%, year-on-year-9.0pct (mainly the transformation business with high gross margin in the first half of 2022 pulled up the base), and the gross profit margin of intelligent manufacturing system was 32.7%, year-on-year + 23.2pct (mainly due to the low gross margin of wafer slicing intelligent project in the first half of 2022) The net interest rate is 2.4%, year-on-year + 10.1pct; period expense rate is 14.1%, year-on-year-10.4pct, in which sales expense rate is 4.4%, year-on-year-2.7pct, management expense rate (including R & D) is 9.2%, year-on-year-5.6pct, financial expense rate is 0.6%, year-on-year-2.1pct. 2 023Q2 single-quarter gross profit margin is 20.7%, year-on-year-0.3pct, month-on-month + 0.5pct, net profit rate is 3.0%, year-on-year + 22.8pct, month-on-month + 1.4pct, mainly because the company takes the initiative to divest low gross margin business (such as wet equipment) and continuously optimize product structure.

Contract liabilities-there is a high increase in inventory and abundant orders on hand: as of the end of 2023Q2, the company's contract liabilities are 260 million yuan, year-on-year + 82%, inventory is 560 million yuan, year-on-year + 50% focus 2023H1 operating net cash-2.77 million yuan, + 89% year-on-year. By the end of 2023Q2, the amount of orders on hand was about 1.4 billion yuan, which was 31% higher than that of the same period last year.

Continuously improve the overall layout of copper plating, the first advantage is obvious: (1) metallization: the company launched an original plug-in electroplating scheme, and reached a strategic cooperation with SPIC on HJT battery VDI copper plating scheme in January 2023, with a single production capacity of 600MW. The feasibility verification results of the first stage equipment exceeded expectations, and the indicators verified in the second stage have basically reached the agreement targets. In June, the single GW HDI copper plating scheme was launched again, and the shipment was completed to the cooperative customers. at present, the installation and commissioning of the client equipment has been completed, and the first phase of testing has been officially entered. (2) graphical:

Striving to launch a more competitive non-exposure scheme, 23Q3 is expected to complete the internal feasibility experimental evaluation of the graphical scheme and speed up the creation of an overall solution for copper plating.

Profit forecast and investment rating: taking into account the impact of equity incentive fees and the slowdown in the progress of ficonTEC acquisition, we expect the homing net profit in 2023-2025 to be 0.8 (original value 1.0,16%) / 1.4 (original value 1.6, downgrade 10%) / 190 million yuan (original value 2.10, downgrade 10%), corresponding to the "overweight" rating of PE in 89-52-40.

Risk hint: downstream expansion is not as expected, R & D progress is not as expected.