博创科技(300548):收入持平利润端承压 欧美电信市场有望恢复增长

Bochuang Technology (300548): Revenue remains flat, profit side is under pressure, European and American telecom markets are expected to resume growth

天風證券 ·  08/25

Incident: The company released its semi-annual report. Revenue for the first half of the year was 632 million yuan (YoY +0.55%), net profit of 142 million yuan (YoY +89.94%), net profit of non-return income was 409.629 million yuan (YoY -36.30%).

Q2: Quarterly revenue was 238 million yuan (YoY -27.39%), and net profit was 105 million yuan (YoY +171.83%).

Operating income is stable, and the profit side is under pressure due to a decline in gross margin

Revenue side: In the first half of the year, the company sold 2.135,000 telecom products, a year-on-year decrease of 75,600 units; the sales volume of digital communication products was 52,000 units, a year-on-year decrease of 0.94 million units. However, due to the increase in the unit price of the company's products, total revenue increased slightly compared to the same period last year.

Profit side: As costs increased due to rising energy prices of British subsidiaries, and the need for the company to take a certain degree of active price reduction measures to achieve higher market share, gross margin fell 4.93 pct compared to the same period last year as a result, the company's H1 profitability declined, and net profit after deducting the net profit fell 36.3% to 409.629 million yuan. The company's non-recurring revenue reached 101 million yuan (only 10.2503 million yuan last year), mainly due to investment income from participating joint ventures, government subsidies, and financial management income from idle capital. Net profit increased by 89.94% over the same period last year.

Maintaining high R&D investment, it is expected to shift to the company's core competitiveness over the long term. The cost rate for the period is basically the same as last year. The company's sales/management/R&D/financial expense ratio was reduced by 0.09/-0.02/-0.81/+1.19pct respectively. The increase in the R&D expense rate was mainly due to the increase in the remuneration of R&D personnel, and the decrease in the financial expense ratio was mainly due to the increase in exchange earnings and interest income.

Overseas fiber-optic broadband construction and upgrades are driving the resumption of growth, and silicon optical products have opened up greater growth in the telecommunications sector: in the second half of 2023, domestic telecom operators will continue to increase investment in 10G PON network construction, and European and American telecom operators' fiber-to-the-home network construction is also expected to resume growth. The company will continue to maintain the production capacity of access network products to meet the needs of domestic and foreign customers. The PLC optical splitters that the company has been producing and selling for a long time are currently mainly sold overseas. The company's subsidiary Chengdu Rongbo continues to increase the development of the new 10GPON next-generation PON optical module and continues to expand its production scale. Currently, 10G PON OLT optical module shipments are leading in China.

Digital communication sector: The company's products have shipped short- and medium-range optical modules, active optical cables and high-speed copper cables with 25G to 400G speeds to many domestic and foreign Internet vendors. Silicon Optical 400GDR4 has also been mass-produced and shipped, and is looking forward to accelerated growth in the future; the company will accelerate the development progress of 800G silicon optical modules and CPO related products, and strive to expand overseas markets to achieve continuous growth in overseas revenue.

Investment advice: The company leads the 10GPON OLT market share, and gigabit broadband lays the foundation for high performance growth. At the same time, the company and Changfei Optical Fiber have optimized and integrated resources, and the synergistic effect is remarkable. We predict that the company's net profit for 23-25 will be 245/295/349 million yuan, and the corresponding PE multiplier will be 31X/26X/22X, maintaining the “increase in holdings” rating.

Risk warning: Domestic and foreign demand in the telecom sector fell short of expectations, competition intensified, prices dropped significantly, and the silicon optical business fell short of expectations

The translation is provided by third-party software.

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