Quick Intelligence released its 23H1 semi-annual report. In 2023H1, the company achieved operating income of 403 million yuan, yoy -5.83%; realized net profit of 109 million yuan, yoy -22.55%. Affected by weak demand for consumer electronics, the growth of the company's precision welding and assembly equipment is under pressure, yet machine vision process equipment and complete intelligent manufacturing equipment have continued to grow. We expect the company's net profit for 23/24/25 to be 3.15/4.30/571 million yuan, respectively, and the 24/24 dynamic PE is only 15/11.2 times, so there is still room for improvement. We maintain our “Highly Recommended” rating for Quick Smart.
Quick Intelligence released its 23H1 semi-annual report. In 2023H1, the company achieved operating income of 403 million yuan, yoy -5.83%; realized net profit of 109 million yuan, yoy -22.55%. 2023Q2's quarterly revenue was 187 million yuan, yoy -16.28%, qoq -13.43%; net profit from Gimu was 54 million yuan, yoy -32.71%, and qoq -1.82%.
The company's performance for the first half of the year was slightly lower than expected. From the perspective of profit margin and expense ratio, the 2023H1 company's expense ratio is generally stable. Among them, the sales expense ratio, management expense ratio, and financial expense ratio were 8.48%/4.63%/-2.25%, respectively, +0.81/-0.01/2.74 pct over the previous year, respectively. Furthermore, during the reporting period, the company continued to enhance innovation and development of new technologies and products. The R&D cost rate was 14.12%, yoy+1.85 pct.
The net sales margin was slightly pressured by 26.78%, yoy-6.2 pct; 2023Q2's gross margin and net profit margin for a single quarter were 50.90%/28.28%, respectively, +0.06/-7.59 pct year-on-year, respectively.
According to the company's semi-annual report, sales of machine vision process equipment and complete intelligent manufacturing equipment have increased in the fields of intelligent electric vehicles and new energy and solar storage, while precision welding and assembly equipment has declined due to weak demand for consumer electronics. It can be seen from this that the pressure on the company's performance in the first half of the year was mainly due to 3C and weak demand for consumer electronics.
According to Canalys data, global smartphone shipments in the first quarter and second quarter of this year fell 13% and 11%, respectively; according to TrendForce, global laptop shipments in the second quarter of this year will reach 40.45 million units, a quarterly increase of 15.7%. This is the first time in six consecutive quarters that growth has resumed, but compared to the same period last year, it is still declining 11.6%.
Despite this, the company's balance sheet indicators are still improving, supporting subsequent performance. As of June 30, 2023, the company's contract debt was 506.814 million yuan, an increase of 13.25% over the end of 2022, indicating that the company still has sufficient orders on hand. As of June 30, 2023, the book value of products issued by the company was 91.91 million yuan, and the book value of inventory products was 40.18 million yuan, an increase compared to the beginning of the period. At the same time, the company built a new plant and expanded its production scale. At the end of the reporting period, the company's projects under construction amounted to 39 million yuan, an increase of 30.85% over the end of the 2022 period. Along with the subsequent transformation of projects under construction, the company's actual production capacity will expand further.
Maintain a “Highly Recommended” investment rating. Considering that the boom in 3C and consumer electronics has been declining since this year, we have lowered our performance expectations for Quick Intelligence. However, with the subsequent release of wearable devices and the company's continued growth in fields such as AOI and semiconductor packaging, we expect Quick Intelligence to achieve a relatively steady increase in performance. We expect the company's net profit for 23/24/25 to be 3.15/4.30/571 million yuan respectively, and the dynamic PE for 24/25 is only 15/11.2 times, and there is still room for improvement. We maintain our “Highly Recommended” rating for Quick Smart.
Risk warning: New business development falls short of expectations, 3C prosperity declines, and major customers fall short of expectations.