Event: Hongquan things Union released its half-yearly report on August 29. The company's operating income was 171 million yuan, an increase of 42.78% over the same period last year. The net loss attributed to shareholders of listed companies was 23.7612 million yuan, narrowing year-on-year losses. The net loss belonging to shareholders of listed companies after deducting non-recurring gains and losses was 24.3441 million yuan, narrowing year-on-year losses.
Revenue has improved significantly and is expected to follow the recovery of the commercial vehicle market throughout the year. Company Q2 realized income of 86 million yuan, an increase of 70% over the same period last year, and a net profit loss of 13 million yuan, compared with a loss of 16 million yuan in the same period last year, narrowing the year-on-year loss. In terms of expenses, the company's 23Q2 sales and R & D expenses increased by 59% and 6% respectively compared with the same period last year, mainly due to the company's increased investment in new product sales and R & D. at the same time, it also confirmed the company's expectation for follow-up business continuity. We believe that with the recovery of the commercial vehicle market, the company can grow for the whole year.
High R & D investment to enhance market competitiveness, it is planned to invest 400 million yuan in R & D automobile intelligence related projects.
According to the China report, the number of R & D personnel of the company was 452 as of the end of last year, with an increase of 37, or mainly due to the fact that the company undertook more development projects in the first half of the year, while horizontally expanding its product line and increasing R & D investment as a whole. The company maintains high R & D investment to comprehensively enhance the market competitiveness of intelligent network products, intelligent cockpit products and controller products. Currently, projects under research include multi-scene low-speed self-driving vehicle R & D projects, "HQ+X" big data cloud platform, intelligent car cloud solution based on 5GV2X technology and so on.
Controllers and instruments are gradually mass-produced, and artificial intelligence algorithms continue to iterate. In the first half of the year, the company's controllers, automotive instruments and other new products have achieved great results, related products have gradually entered the stage of mass production, passenger car thermal management controller has begun mass production and sales. In the research and development of artificial intelligence algorithms, the company has developed more algorithm functions suitable for commercial vehicles, such as seat belt wear recognition, black smoke monitoring, mixing tank turn recognition, etc.; in addition, voice recognition and panoramic camera functions in commercial vehicle human-computer interaction terminals have been added.
Investment rating: the company is expected to usher in the three-strike resonance of the recovery of the heavy truck industry, the increase of market share and the improvement of product unit price. We estimate that the company's operating income in 2023-2025 will be 446 yuan, and its net profit will be 0.40 million yuan, and its net profit will be 0.03 million yuan, and its PE for 2023-2025 will be times that of 57-22-17.
Risk tips: industry recovery is less than expected risk; driving recorder new national standard landing less than expected risk; controller product development and production is not as expected risk; macroeconomic downside risk and so on.