2023 H1:
1) Achieved revenue of 403 million yuan, -5.83% year on year; realized net profit of 109 million yuan, or -22.55% year on year; realized net profit of 93 million yuan after deducting non-return net profit of 93 million yuan, or -22.5% year on year. 2) H1 gross profit margin is 51.08%, year on year -1.05 pct; return net profit margin is 26.95%, year on year -5.82 pct; net profit margin after deducting non-return net profit margin of 23.01%, year on year -4.95 pct. 3) The cost rate for the period was 24.98%, +5.39 pct, and the sales/management/development/finance expense ratio was 8.48%, 4.63%, 14.12%, and -2.25%, respectively. The year-on-year changes were +0.81, -0.01, +1.85, and +2.74 pct, respectively.
2023Q2 single quarter:
1) Achieved revenue of 188 million yuan, -16.28% year-on-year and -13.73% month-on-month; realized net profit of 54 million yuan, -32.71% year-on-year, -2.73% month-on-month; realized net profit of 46 million yuan after deducting non-attributable net profit of -32.94%, and -0.5% month-on-month. 2) Q2 The gross profit margin for a single quarter was 50.9% year on year, +0.05 pct, month on month - 0.35 pct; return net profit margin was 28.69%, year on year -7.01 pct, +3.24 pct; net profit margin after deducting non-return home net profit margin of 24.78%, -6.16 pct year on year, +3.3 pct. 3) The cost rate for the period was 23.11%, +7.88pct, and the sales/management/development/finance expense ratios were 8.59%, 3.42%, 15.15%, and -4.06%, respectively. The year-on-year changes were +0.2, -0.25, +1.91, and +6.02 pct, respectively.
Short-term performance is under pressure, and business quality is steady. Affected by factors such as macroeconomics and weak consumer electronics demand in 2023, the company's revenue declined only slightly, showing strong resilience. In the first half of '23, after excluding the impact of exchange gains and losses from financial expenses, the net interest rate remained basically unchanged year on year; the gross profit margin was 51% and remained at a high level; operating cash flow and net profit were basically synchronized, demonstrating strong cash operating capacity, and the quality of operations remained steady. The R&D expenditure rate is 14.12%, demonstrating the company's continuous drive for product innovation and its deep rooted confidence in the semiconductor packaging field.
The bottom of consumer electronics is poised to welcome a rebound: In the first half of '23, due to the macroeconomic environment, the downturn in the industry cycle, and delays in new product progress from major customers, the company's orders for precision welding equipment, etc. declined slightly year-on-year, but the number of NPIs for pre-research projects in progress was sufficient, and the relevant performance is expected to be flexible in '24.
New energy vehicles drive power semiconductors to buck the trend, and the company actively expands customers through product development. Semiconductor packaging equipment is progressing rapidly and is the main direction of the company's R&D investment. Among them, SiC packaging core equipment, nano-silver sintering equipment, has completed mass production process verification for major customers. At the same time, process verification for many packaging companies has been completed, and orders are being gradually implemented. In the field of power semiconductor package inspection, the solid crystal AOI equipment developed by the company is currently being used on the customer's mass production line.
The boom in the new energy sector continues, and the company continues to benefit. Benefiting from the electrification and intelligence of automobiles, automated assembly lines such as wire-controlled chassis, 4D millimeter-wave radar, and electric drive control have all received orders. The company's accumulated welding and AOI experience in the 3C field has been extended to the field of new energy, providing comprehensive solutions for high-reliability welding of IGBT power modules in new energy photovoltaic inverters and energy storage converters. Currently, the products have entered Sunshine Power, Vimax, Hikvision and other companies.
Profit forecast and valuation: Since the recovery of the consumer electronics cycle fell short of expectations, we forecast that the company's 23-25 revenue would be 8.93, 11.33, 1,516 million yuan, growth rate of -0.93%, +26.88%, +33.78%, net profit of 2.51, 3333, 467 million yuan, growth rate -8.28%, 32.82%, and 40.30%, corresponding to PE26/19/14X. Maintain a “buy” rating. (Previous values: 23-25 revenue of 11.52, 16.47 billion yuan, 2.156 billion yuan; net profit to parent was 361 million, 5.20 million yuan, and 681 million yuan respectively) Risk warning: Consumer electronics recovery fell short of expectations, order delivery fell short of expectations, equipment verification fell short of expectations, demand fell short of expectations, etc.