Events:
According to the company's half-yearly report for 2023, the company's 2023H1 realized operating income of 1.63 billion yuan, an increase of 13.98% over the same period last year; realized a net profit of 90 million yuan belonging to the owner of the parent company, turning losses into profits over the same period last year; and deducting 68 million yuan from non-parent net profit, turning losses into profits over the same period last year.
With deep binding to major customers, 23H1's performance has grown steadily:
The company's 23H1 revenue has increased steadily compared with the same period last year, mainly due to the company's deep binding of major customers, focusing on the promotion of key projects, and making breakthroughs in the sales of new products applied in the 3C field. The flexible modular production line and MR production equipment launched by the company according to customer demand have completed partial delivery and formed sales revenue, contributing new growth points to the company's performance. The substantial increase in net profit in the first half of the year is mainly due to: (1) the growth of sales revenue leads to the simultaneous growth of profits; (2) part of the company's business uses US dollars for transactions, and exchange rate changes have a positive impact on the company's profits; (3) the company has further strengthened cost control and achieved cost reduction and efficiency, during which the expense rate has decreased compared with the same period last year. Judging from the single quarter of Q2, 2023Q2 achieved operating income of 747 million yuan, an increase of 14.75% over the same period last year, down 15.40% from the previous year; and realized a net profit of 38 million yuan from the same period last year, turning a loss into profit over the same period last year, down 26.92% from the previous year. 23Q2 performance continues Q1 performance, achieving a high increase compared with the same period last year.
Deep cultivation of 3C business, MR, semiconductors, new energy equipment to open the room for growth:
While the 3C business continues to consolidate and enhance its competitiveness, the company actively expands and extends its business to new fields such as semiconductors and automotive electronics, and gradually constructs a wide range of business layout in application fields. (1) in the 3C business field, the company specializes in precision assembly, precision testing, precision measurement, precision Bonding and other fields, has almost covered a full range of terminal products. In the field of XR, the company's products are mainly concentrated in the assembly and testing equipment of the module segment and the back section of the FATP link in the front end of the production line. 2023H1 Company has received the proofing needs of the next generation of MR production equipment from major customers, as well as the needs of several XR product customers, and the business development is stable. (2) in the field of new energy, it mainly provides customers with lithium battery manufacturing standard equipment such as liquid injection machine, high-speed cutting and stacking machine, cell assembly special machine, as well as intelligent charging station, automobile automation equipment and so on. At present, the company's tunnel cavity injection machine, high-speed thermal composite cutting and stacking machine and other products have simultaneously obtained mass production orders from customers such as Ningde era and Honeycomb Energy. In terms of rechargeable products, the self-supply rate of the company's intelligent charging stations is as high as 80%. On the basis of the original top-hanging power exchange technology, the commercial vehicle exchange power station has added chassis power exchange technology, which has more competitive advantages with low center of gravity and large capacity. at present, the company has opened up customers such as Ningde era, SAIC Group, deepway, BAIC Langu, Geely Automobile, Guangzhou Automobile Group, NIO Inc. and so on. (3) in the field of semiconductors, the company first lays out the packaging and testing equipment in the back, and then extends the wafer AOI testing equipment. At present, the company has launched AOI testing machine, automatic high-precision eutectic machine, high-speed and high-precision solid crystal machine, cleaning machine equipment, related products have achieved sales, and achieved good results in the customer site.
Investment advice:
We estimate that the company's income from 2023 to 2025 will be 5.662 billion yuan, 6.812 billion yuan and 8.297 billion yuan respectively, and the net profit will be 490 million yuan, 641 million yuan and 786 million yuan respectively. With reference to the average PE22.80 times of domestic counterparts Seteng shares, Huaxingyuan Chuang and Pioneer Intelligence in 2023, and considering that the company is deeply bound to major customers and continues to import leading enterprises in the industry, it gives the company a valuation of PE30.00X in 2023, corresponding to the target price of 32.70 yuan.
Risk Tips:
Downstream demand decline risk, market competition aggravates risk, technology research and development is less than expected risk, and large customers rely too much on risk.