The company released its 2023 semi-annual report, and sluggish demand for lasers dragged down the company's performance
2023H1 achieved total operating income of 142 million yuan, down 43.23% year on year; net profit loss of 111 million yuan, down 117.97% year on year; 2023Q2 achieved total operating income of 52 million yuan, down 62.59% year on year; net profit loss of 112 million yuan, down 138.38% year on year. According to data from the National Bureau of Statistics, from January to June 2023, the total profit achieved by industrial enterprises above the national scale fell 16.8% year-on-year. Demand in the laser market was weak, the company's capacity utilization rate was insufficient compounded by product price adjustments, and the company's performance performance fell short of expectations. We lowered the company's performance forecast for 2023-2025. It is estimated that the company will achieve net profit of 0.95 (-1.05) /2.00 (-1.14) /2.98 (-1.52) million yuan in 2023-2025, corresponding to 0.54/1.14/ 1.69 yuan/share, the PE corresponding to the current stock price is 117.3/55.9/37.5 times, respectively. The company has strong comprehensive strength in the semiconductor laser industry and excellent long-term development prospects. Waiting for the boom in the laser industry to recover, it still maintains a “buy” rating.
Take the initiative to adjust prices, and the market share of products is expected to increase further
In terms of profitability, 2023H1's overall gross margine/net margin was 31.37%/-7.48%, a year-on-year decrease of 22.06/31.12 pct. This is mainly due to the weakening demand for downstream laser chips and the decline in overall prices in the industrial chain. At the same time, the company also actively implemented price adjustment strategies to increase market share and increase competition barriers, which is expected to seize the market and achieve long-term growth. In terms of expenses, the company's overall expense ratio was 53.79%, up 19.67 pct year on year, mainly due to changes in revenue scale. Among them, the company's sales/management/R&D/financial expense ratio was 5.58/12.30/38.54/ -2.63%, year-on-year change -0.92/+6.65/+16.94/-3.00pct. The company is firmly invested in R&D, core products are expected to continue to be optimized, and product competitiveness continues to increase.
Deeply involved in the field of high-power laser semiconductors, the horizontal expansion of the market has accelerated the company's deepening development in the field of high-power laser semiconductors, and is actively expanding horizontally. The company's 9xxNm 50W high-power semiconductor laser chip has reached the highest mass-produced power on the market, ranking at the leading level in the industry. The company is actively expanding horizontally. VCSEL is expanding the three application fields of consumer electronics, optical communication, and lidar, and will form large-scale sales in the 3D sensing field. LIDAR chips have passed vehicle regulations certification; in terms of optical communication, single-wave 100G EML has been mass-produced and can be applied to 400G/800G optical modules, which is expected to benefit from the growth of the AI industry and make a positive contribution to the company's performance.
Risk warning: Product development progress falls short of expectations, industry competition is fierce, and downstream demand falls short of expectations.