Event: the company released the mid-2023 report that 23H1 achieved revenue of 289 million yuan, year-on-year + 3.58%, net profit of 28 million yuan, year-on-year-10.39%, non-net profit of 27 million yuan, year-on-year-8.56%, gross profit 41.82%, year-on-year + 3.68pcts. 23Q2 achieved revenue of 160 million yuan in a single quarter, year-on-year + 6.37% / month-on-month + 24.41%, net profit of 17 million yuan,-13.59% / month-on-month + 46.40%, deduction of non-net profit of 16 million yuan, year-on-year-12.45% / month-on-month + 43.93%, gross profit 41.69%, year-on-year + 3.90pcts/-0.29pcts.
Overall performance is stable, expense growth squeezes profits: on the revenue side, the company's 23H1 and Q2 both grew in a single quarter. On the expense side, the 23H1 sales / management / finance / R & D expense rates are 3.66% 14.28% 12.33% 8.15pct 0.66%, year-on-year changes + 0.41% Universe 2.96% Universe 4.12% Universe 0.66%, total expense rate 29.61%, year-on-year + 8.15pct, an increase of 26 million yuan in absolute value over the same period last year. Mainly affected by fixed assets depreciation / share payment / net interest income / exchange gain and loss / R & D personnel compensation and R & D material investment and other factors, squeeze the profit, if added back, the profit performance is better. Looking forward to the future, with the orderly release of the company's convertible bond project capacity and the possible improvement of industry demand, the company's new energy business is expected to continue to grow. Semiconductors, aerospace and other fields are expected to enjoy a broader space by virtue of the underlying vacuum electronic technology, and the overall performance is more flexible.
New energy business: the marginal growth rate of 23H1 new energy vehicles has weakened, and the pace of pulling goods for upstream parts has slowed down, but the bearing of charging pile has improved. The income of DC contactors / contact groups of the company's related products has respectively reached RMB 98.31 million, a year-on-year change of-19.67% and 33.76% respectively. In the first half of the year, the company develops new energy products in the field of new energy, such as new generation vehicle high voltage DC contactors (Y series), energy storage high voltage and high current contactors (400-900kW series) and wireless integrated high voltage control boxes, to meet the needs of the rapidly developing new energy market. The overall demand in the field of 23H1 scenery storage and power is still good. The company's related products AC contactors / vacuum switches have achieved revenue of 511.19 million yuan respectively, with year-on-year changes of + 10.38% and 5.61% respectively. In order to match the new application scenarios of AC contactors, the company has carried out research and development of AC contactors related products and technologies such as double decoupling board-mounted AC contactors and high prototype rapid bypass switches. In terms of production capacity, the company's previous investment in DC contactor capacity of 3 million annual production capacity has been completed, and the convertible bond project has added 6.48 million DC contactors / 1.65 million AC contactors. The annual production capacity is expected to be fully put into production in December 2025, forming an effective support for the company's future growth of new energy business.
Semiconductor business: 23H1's main related products vacuum capacitors achieved revenue of 16.51 million yuan,-9.32% compared with the same period last year. As the core component of RF power supply in plasma etching (Plasma Etch), enhanced vapor deposition (PECVD), vapor phase cleaning and other equipment, the company's vacuum capacitor has the characteristics of high voltage resistance, large load current, low loss and long life, and is basically the same as foreign competitors in terms of performance parameters, and low production cost, competing with overseas Comet and Mingdian house. The research and development of 23H1's high-performance fine vacuum capacitors used in the field of etching has been promoted in an orderly manner. In the future, with the continuous promotion of the demand for localization of semiconductor equipment / components under the background of self-control, the company's related products are expected to enjoy a broad space.
Special equipment: in the field of special equipment such as aerospace and aviation, the company enters early, product models and application scenarios continue to expand, sales revenue increases steadily; downstream manufacturers have strict certification, high barriers to entry, and the company has a solid supply position.
Investment suggestion: the company has high vacuum electronic technical barriers, and the company's performance is expected to pick up with the release of convertible bond capacity in the future. at the same time, there is great flexibility in the field of semiconductors and special equipment, so the company's development prospect is worth looking forward to. We expect the company's annual return net profit in 23-24-25 to be 0.92 Universe 2.51 Plus 372 million, EPS 0.95 Universe 2.62 Plus 3.89 per share, and corresponding PE 55.63 Plus 20.28 Plus 13.67 times, maintaining the "overweight" rating.
Risk tips: new energy vehicle demand decline risk; downstream application field expansion adverse risk; trade friction risk; product quality control improper risk; raw material price fluctuation risk.