2023H1 revenue fluctuated slightly, in line with expectations, and maintained that the “bought” rating company achieved revenue of 391 million yuan, YoY -5.1% in 2023H1; net profit of 116 million yuan, YoY -15.2%, after deducting non-return net profit of 84 million yuan, YoY -22.9%; gross profit margin of 40.3%, YOY-0.8pcts. At 2023Q2, the company achieved revenue of 203 million yuan, YoY -0.14%, QoQ +7.7%; net profit of 69 million yuan, YoY -17.2%, QoQ +44.6%; gross profit margin of 41.8%, QoQ+3.1 pcts. The company's revenue is under pressure from the bar code scanning business. Active measures have been taken to stabilize performance, and the improvement is obvious from quarter to quarter. We have slightly raised our profit forecast. We expect 2023/2024/2025 net profit to be 314./3.88/472 million yuan (previous value: 285/379/466 million yuan), EPS is 2.84/3.51/4.27 yuan (previous value 2.58/3.43/4.21 yuan), and the current stock price corresponds to PE 30.8/24.9/20.4 times. The company's share of high-end microscopes continues to increase, demand for bar code scanning is improving season by season, and various medical products have made smooth progress. It is expected that future revenue will maintain steady and high-quality growth and maintain a “buy” rating.
Microscope revenue is steady, and the meta-component business is under pressure in the short term
2023H1's optical microscope revenue was 188 million yuan, YoY +16.5%, gross profit margin 40.9%, and YOY+2.0 pcts.
The optical component business achieved revenue of 194 million yuan, YoY -20.5%, mainly due to the decline in bar code scanning-related products. In 2023H1, the company's high-end microscope revenue was nearly 60 million yuan, and the high-end share continued to increase. The main sources of growth were life science, industrial testing and medical customers. In terms of the bar code business, downstream terminals are being gradually repaired. Therefore, revenue from bar code scanning products declined year-on-year in the first half of the year. The company is actively expanding its complex component business. It is expected that barcode-related revenue will pick up at an accelerated pace in the second half of the year.
Continue to invest in R&D to accelerate the deployment of the medical field
2023H1's R&D expenses were 45.89 million yuan, +14.66% year-on-year, accounting for 11.7% of the company's revenue. The company is conducting continuous research in the fields of bar code lens AA assembly, lidar, machine vision, and medical care. In the medical field, the company's medical optical components are steadily supplied to ZEISS, US BD Medical Devices and other companies. Endoscopic lenses have been shipped in batches by customers, various high-end medical biomicroscopes have cooperated with dozens of hospitals in China, and the medical optics business is developing smoothly.
Risk warning: The company's product development and production fell short of expectations; demand recovery fell short of expectations; high-end product promotion fell short of expectations; lidar launch progress fell short of expectations.