Description of the event

On August 25, 2023, the company released the “2023 Semi-Annual Results Briefing Meeting Minutes”. It was disclosed that the company's accounts receivable as of the interim report were RMB 284,782,896.79.

Revenue grew steadily, and period expenses affected profits

In the first half of 2023, the company achieved revenue of 111 million, an increase of 6.08% over the same period last year. The company's revenue mainly comes from high-speed, high-precision ADC/DAC chips, power management chips, microsystems and modules. In the first half of 2023, the company actively developed new customers, strengthened internal management, and achieved revenue growth.

The company achieved net profit of 34 million yuan in the first half of 2023, down 33.47% from the same period last year.

The main reason is that sales and management personnel have also increased due to the expansion of the company's business scale, and that the company continues to focus on product research and development, maintain a high level of investment in R&D, and has greatly increased expenses during the period.

Pay attention to R&D investment

The company invested 516.691 million yuan in R&D in the first half of the year, an increase of 22.279,900 yuan over the same period last year, an increase of 75.76% over the same period last year. This is mainly because the company, as a chip design enterprise, needs to strengthen its technological innovation advantages by continuously increasing R&D investment in order to maintain the market competitiveness of the company's products. At the same time, the company's R&D personnel remuneration, R&D materials, and technical service investment have increased.

Investment advice

The company's net profit for 2023-2025 is expected to be 145, 1.98 million yuan, and 274 million yuan respectively, with year-on-year growth rates of 34.9%, 36.2%, and 38.4%. The corresponding PE is 53.13, 39.01, and 28.18 times, respectively.

Maintain a “buy” rating.

Risk warning

R&D fell short of expectations, downstream demand fell short of expectations, and project construction fell short of expectations.