Introduction to this report:
The company's 1H23 achieved revenue of 829 million yuan, an increase of 38.61% over the previous year. Affected by product structure upgrades and production expansion costs, etc., short-term performance is under pressure. The company's domestic revenue is growing rapidly, and production capacity is being deployed in many places. Increased volume and efficiency can be expected in the future.
Key points of investment:
The “increase in holdings” rating was maintained and the target price was lowered to 130.00 yuan. The company is a semiconductor component leader, but considering the poor boom in the industry and the increase in the share of module products with low gross margin, the EPS for 2023-2025 was lowered to 1.43/2.04/2.77 yuan (the original forecast was 1.81/2.57 yuan for 2023-2024, and a new increase in 25). Considering the release of production capacity at the new plant, referring to the valuation level of semiconductor components, 64 times PE in 2024 will be given, and the target price will be lowered to 130.00 yuan.
Q2 Revenue continued to grow, and performance for the first half of the year was under pressure and fell short of expectations. 1H23 achieved revenue of 829 million dollars, YOY +38.61%; realized net profit of 96 million yuan, YOY -4.80%.
2Q23 The company achieved revenue of 487 million, YOY +53.54%, and QoQ +42.69%; realized net profit of 56 million yuan, YOY -5.72%, and QoQ +42.92%. The company's performance in the first half of the year was under pressure due to product structural optimization, personnel costs to expand production, and amortization of equity incentives.
Domestic substitution is accelerated and driven, and the product structure is optimized and upgraded. By product, the company's revenue for module products, process components, structural components, and gas pipelines in the first half of the year was 345 million, 195 million, 203 million, and 73 million yuan, respectively, with year-on-year changes of +188.91%, +11.17%, +1.84%, and -23.16%; by region, mainland China's revenue in the first half of the year was 526 million yuan and 291 million yuan respectively, up 73.10% and 1.66% year-on-year respectively. The company's product structure is optimized to modules. As the product scale continues to expand, profitability is expected to increase.
Production has been expanded in many places at home and abroad, and increased volume and efficiency can be expected in the future. The company lays out production capacity in Shenyang, Nantong, Beijing, Singapore and other places. According to the company's plan, the annual production capacity of the Nantong and Beijing factories is 2 billion yuan; it is expected that the Nantong plant will release 30% of production capacity in 2023, and the amount can be expected.
Risk warning: Overseas market recovery falls short of expectations; product development falls short of expectations.