Incidents:
The company released the 2023 semi-annual report. In 2023H1, the company achieved operating income of 482 million yuan, a year-on-year decrease of 22.34%; realized net profit attributable to owners of the parent company was 77 million yuan, a year-on-year decrease of 59.89%; and realized net profit not attributable to parent company of 59 million yuan, a year-on-year decrease of 65.56%.
23Q2 Net profit increased significantly month-on-month, actively laying out new business:
The company's 2023H1 performance declined compared to the same period last year. The company's overall packaging business revenue declined mainly due to weak demand for consumer electronics such as downstream mobile phones and overcapacity and high inventories in the industry. Looking at the Q2 quarter, 2023Q2 achieved revenue of 259 million yuan, an increase of 16.14% over the previous month; realized net profit of 48 million yuan, an increase of 65.52% over the previous month; and realized net profit of 39 million yuan after deducting non-return net profit of 39 million yuan, an increase of 95.00% over the previous quarter. 23Q2's quarterly performance increased sharply month-on-month, mainly due to a recovery in downstream demand and a gradual recovery in the company's overall capacity utilization rate. At the same time, the company is actively adjusting the product structure and continuing to develop and expand in new fields such as automotive camera packaging and micro optical device manufacturing. The corresponding business scale and production capacity continue to increase, which is expected to open up new performance growth points.
The application field of miniature optical lenses continues to expand:
The company has been in the field of automotive cameras for many years. The company's subsidiaries Anteryon and Jingfang Optoelectronics have world-leading core capabilities in micro optical design, R&D and manufacturing, and have broad application prospects in many market fields such as semiconductors, automobiles, and industrial automation. With the development of the company's technology, on the one hand, the company's core advantages in the field of hybrid optical lenses continue to improve, and further expand its market size in industrial, automotive and other advantageous applications in Europe and America; on the other hand, micro optical lenses have successfully obtained certification from overseas TIE1 customers, achieved large-scale mass production in the field of automotive intelligent projection, and can also provide customized micro-optical solutions for automotive intelligent interaction systems such as automotive headlights.
VisIC's automotive GaN device development is progressing steadily:
The company further strengthened its investment in ViSIC by the end of 2022 and continued to promote business collaboration. ViSiC is the world's leading third-generation semiconductor GaN (gallium nitride) device design company. Currently, it is actively cooperating with well-known international automobile manufacturers to jointly develop gallium nitride devices and systems for 800V and above high-power main drive inverters. In February 2023, ViSIC and the customer jointly completed the Global Uniform Light Vehicle Test Procedure (WLTP) driving cycle test, proving that its D3GaN (direct drive exhaustion gallium nitride) semiconductor technology is ideal for high-power automotive applications, and is expected to benefit from an explosion in downstream demand in the future.
Investment advice:
We expect the company's revenue from 2023 to 2025 to be 1,278 million yuan, 1,584 million yuan, and 2.151 billion yuan respectively, and net profit to parent to be 222 million yuan, 420 million yuan, and 559 million yuan respectively, maintaining “buy-A”. In line with the wind industry's unanimous expectations, the company was given 56.1 XPE in 23 years, corresponding to a target price of 26.37 yuan.
Risk warning: Downstream demand is at risk of decline, market competition is increasing risk, and technology development falls short of expected risk.