Incidents:
The company released the 2023 semi-annual report. In 2023H1, the company achieved operating income of 886 million yuan, a year-on-year decrease of 19.57%; realized net profit attributable to owners of the parent company was 130 million yuan, a year-on-year decrease of 23.91%; and realized net profit not attributable to parent company of 114 million yuan, a year-on-year decrease of 25.93%.
Demand for consumer electronics and semiconductors is sluggish and short-term performance:
The company's 23H1 declined compared to the same period last year, mainly due to delays in mass production plans for the company's main customers in the first half of the year and macroeconomic impact; the decline in non-net profit was mainly due to the company's transfer of shares in Suzhou Silicon Vision Technology Co., Ltd. and changes in government subsidy amounts. Looking at Q2 in a single quarter, 23Q2 achieved revenue of 528 million yuan, a year-on-year decrease of 27.59%, and a year-on-year increase of 47.08%; realized net profit of 104 million yuan, a year-on-year decrease of 20.63%, and a year-on-year increase of 285.19%.
Micro OLED inspection equipment has great potential:
Apple released MR in June of this year. It is equipped with a Micro OLED screen with a resolution of 4K, a pixel density of over 3,000 PPI, and a resolution that can even reach 8K ultra-high resolution. It is the most expensive component of MR, and it is also the core link that currently limits MR production capacity. , currently exclusively available from Sony. The company is the world's leading manufacturer of screen inspection equipment. The layout of microOLED testing equipment is leading in the industry, and related products have been shipped to leading international consumer electronics companies. Driven by Apple, the penetration rate of Micro OLEDs in VR, AR, and MR is expected to increase rapidly, and the company will benefit deeply.
The technical indicators of Soc testing machines are leading, and new energy testing equipment is rapidly growing in semiconductors. The company's SOC testing machines have launched two generations of models. Among them, the second-generation models have not only improved performance parameters, but also added a variety of mixed-signal boards, which can meet 32-bit high-end MCU, high-pixel CIS, fingerprints, DSP, simple IoT terminal SOC chips, and complex SOC chip CP tests. Many indicators can already benchmark the same type of Edwan and Teraida best-selling models.
In terms of new energy, the company has not only developed on-board computer testing machines, body controller test platforms, and various electronic product module burning and communication testing related equipment for leading customers of new energy vehicles, but also actively deployed in the ADAS sensor field and developed production and testing related equipment for lidars, high voltage relays, acceleration sensors, camera modules, and navigation modules, and continues to benefit from the rapid growth of the new energy market.
Investment advice:
We expect the company's revenue from 2023 to 2025 to be 2,513 million yuan, 3,266 million yuan, and 4.132 billion yuan respectively, and net profit to parent to be 352 million yuan, 504 million yuan, and 694 million yuan respectively, maintaining “buy-A”. Based on the wind industry's unanimous expectations, it is estimated that the company will have 50XPE in '23, corresponding to a target price of 40.00 yuan.
Risk warning: Risk of decline in downstream demand, risk of market competition, product development falling short of expectations, and excessive customer concentration.