occurrences
On August 29, 2023, the company released its semi-annual report for 2023. From January to June 2023, the company achieved operating income of 156 million yuan, an increase of 9.08% over the previous year; the net profit of returned mother was 53 million yuan, a decrease of 692% over the previous year.
Key points of investment
23H1 had sufficient production capacity, and Q2 revenue was close to an all-time high. In the first half of 2023, the company achieved operating income of 156 million yuan, an increase of 9.08% over the previous year; net profit of Gimu was 53 million yuan, a decrease of 692% over the previous year. Among them, Q2 achieved revenue of 90 million yuan, a year-on-year increase of 31.08%, a year-on-year increase of 37.41%, and net profit of Q2 was -33 million yuan, a year-on-year decrease of 702.96%, and a year-on-year decrease of 60.06%. The 23Q2 business situation improved markedly compared to 23Q1 and 22Q2 year-on-year. Although the company's main business shipment volume and product prices have been affected by various factors, the company has adopted an active market strategy to increase market share, ensure healthy operation of the supply chain and gradually reduce inventory by increasing product shipments. 23H1's revenue performance is stable and developing healthily.
Deeply cultivate the main business and fully tap the potential of key markets. The company mainly produces MEMS series sensor products. Currently, MEMS acoustic sensor products are widely used in consumer electronics products such as smart phones, tablets, laptops, smart homes, and wearable devices. Specific brands include Huawei, Voice Transmission, Xiaomi, Samsung, OPPO, Lenovo, Sony, etc. MEMS pressure sensor products are mainly used in consumer electronics, automobiles and medical fields. Among them, electronic blood pressure monitor end customers mainly include Lexin Medical and Jiu'an Medical. The high performance and cost effectiveness of the product have accumulated high-quality customer resources and good brand awareness, helping to expand the market.
Maintain a high level of research and development, focus on technological innovation, and focus on outstanding talents. In the first half of the year, the company invested 377.04 million yuan in R&D, with an R&D cost rate of 24.21%; a total of 181 R&D personnel, accounting for 36.13% of the total number of people in the company; it had 79 domestic and foreign invention patents, 283 utility model patents, 212 domestic and foreign invention patents and 339 utility model patents currently being applied for.
The R&D team with high education, deep professional background and strong innovation ability lays the foundation for the company's product upgrades, industrialization of new processes, and increased MEMS production capacity.
Actively integrate industry resources and continuously improve the industrial layout. With its own capital of 7.125 million yuan, the company and Ningbo Keli Sensor Technology Co., Ltd. jointly increased the capital to invest in Shenzhen Keli Electric Technology Co., Ltd., accounting for 9.5% of the registered capital, laying a good foundation for realizing the company's industrial layout of downstream sensor products and broadening the company's product categories. At the same time, the company, related parties and non-related parties plan to establish Agile Chain Semiconductor Technology (Shanghai) Co., Ltd. to achieve the company's layout in the field of MEMS acceleration sensors and gyroscope ASIC chips, and build a MEMS technology platform-based enterprise. Currently, in addition to consumer products, the company has been actively laying out non-consumer products, such as modules, etc. In addition, there are other market segments and markets with high gross profit margins. With the volume of various innovative products, market performance is expected to rebound strongly.
Investment advice
We expect the company to achieve revenue of 408/540/680 million yuan and realized net profit of 0.24/0.57/86 million yuan respectively in 2023-2025. Maintain a “buy” rating.
Risk warning:
Downstream demand recovery fell short of expectations; R&D fell short of expectations; increased market competition, etc.