Event: the company releases its 2023 semi-annual report
In the first half of 2023, the company's revenue and net profit increased by 22% and 28% respectively over the same period last year, with a total revenue of 134 million yuan in the first half of 2023, an increase of 22% over the same period last year, and a net profit of 11 million yuan, an increase of 28% over the same period last year. In the first half of 2023, the company's gross profit margin and net profit margin reached 31.42% and 10.34% respectively, down 7.98% and 2.77pct from the same period last year, mainly due to changes in the company's product structure.
The low point of performance has gradually passed, and the company's Leo satellite business is expected to speed up. 1) the company's business is partial to the project system, which requires personnel to be implemented and delivered to the customer site, which will be affected to a certain extent in 2022. The revenue of 2022Q3-2023Q2 increased by 21%,-18%, 40% and 4% respectively, and the net profit from home increased by-5%,-23%, 49% and 18% respectively.
2) with the successful launch of China's first satellite Internet technology test satellite, China's low-orbit communication satellite industry is expected to enter the fast lane, and the company's satellite-oriented electromagnetic measurement system business has achieved rapid order growth.
Electromagnetic measurement: benefit from the high prosperity of the industry, based on the horizontal expansion of phased array measurement category 1) phased array measurement: phased array measurement as the company's core business, market share industry leading, the future is expected to continue to benefit from the continuous expansion of phased array radar application boundaries.
2) Radar cross section measurement: in April 22, the company announced a large contract of 330 million, indicating that the radar cross section measurement business is becoming mature and will fully benefit from the development of stealth equipment industry in the future.
3) RF measurement: the company acquired a 51% stake in Hongjie Electronics. Hongjie Electronics focuses on providing RF microwave module measurement and micro-discharge measurement system for the satellite field, which is expected to continue to benefit the construction of Leo satellites in China.
Electromagnetic simulation: the core supplier of electromagnetic CAE simulation, the company continues to benefit from the domestic substitution process. 1) according to the China Business Industrial Research Institute and IDC data, China's CAE market reached 2.1 billion yuan in 2021, with a compound growth rate of 14% in the past three years. At the same time, the localization rate of the industry is only 15%, and there is a broad space for domestic substitution.
2) the downstream of the company is mainly for users in high-end fields such as national defense, and the release of RDSim forms a domestic substitute in the field of electromagnetic subdivision. Under the requirements of intellectual property protection and independent control, the company's electromagnetic simulation business can be expected in the future.
Phased array products: relying on the advantage of electromagnetic measurement simulation, the company is expected to open the company's second growth curve as one of the few enterprises in the industry engaged in electromagnetic simulation and measurement business at the same time. The company has accumulated experience in simulation overall design and phased array calibration optimization for many years, and has inherent advantages in expanding to downstream phased array products. In the future, it is expected to achieve the extension from billion-level calibration test market to 10 billion-level phased array product market.
Hollavo: the compound growth rate of 2023-2025 is expected to be 48%. The company's 2023-2025 net profit is expected to be 0.85,1.22 and 164 million yuan respectively, an increase of 68%, 44% and 35% respectively over the same period last year, corresponding to 43, 30 and 22 times of PE, maintaining the "buy" rating.
Risk tips: 1) the risk of order fluctuations in special industries; 2) phased array products and other new business development is not as expected.