Events:

According to the semi-annual report released by the company, 23H1 achieved a revenue of 630 million yuan, an increase of 81.3%, and a net profit of 15 million yuan, a year-on-year reversal of losses (22H1 is-26 million yuan).

Comments:

Benefiting from the substantial expansion of production downstream & the effectiveness of fee control, the increase in income in the first half of the year also increased profits. With the advantage of leading technology and products, the company has obtained a relatively high order for TOPCon. As of the disclosure of the China News, there are 1.4 billion yuan in-hand orders per day, equivalent to 1.5 times the annual revenue in 2022, and the order amount continues to expand. The contract debt of 23H1 Company was 260 million yuan, an increase of 82.2%. In addition, the company strategically abandoned orders with low gross margin and low ability to pay, introduced JIT mode to improve quality and efficiency, reduced the loss of inventory price and the impairment loss of contract performance cost from 19.44 million yuan of 22H1 to 880000 yuan of the current period, and achieved good results. From the photovoltaic business orders-on-hand and pan-semiconductor business downstream demand, 2023 full-year high growth period.

Pan-Semiconductor: ficonTEC acquisition continues to advance. On August 12, the company issued a suspension notice, intending to purchase the control of Tektronix held by shareholders except Suzhou Felix Crystal Micro Technology Co., Ltd., by issuing shares and paying cash. Under the background of the explosive growth of the amount of data and the upward demand for high-speed transmission, optical advance and copper retreat is a deterministic trend. FiconTEC is an international leader in 800G and 1.6T high-speed optical module packaging and testing, and has different cooperation projects with a number of world-renowned customers. The progress of the silicon module industry has accelerated significantly this year, and the pattern of silicon equipment is excellent, and the main players are expected to benefit first. In addition, the company set up a project at the beginning of the year to implement the semiconductor glue development equipment project, actively expand the wafer cleaning, glue, development field.

Photovoltaic: copper plating equipment is progressing smoothly, maintaining the first-mover advantage. 1) Metallizing: the equipment of the company's cooperation with SPIC New Energy has basically reached the agreement target in the second phase, and the subsequent cooperation will optimize the scheme. In addition, the single GW copper plating equipment has been installed and debugged in the client, officially entered the first phase of testing, and will continue to promote the mass production process of the business.

2) graphical: the project was established at the beginning of the year, and the company plans to complete the internal feasibility experimental evaluation at the end of 23Q3. The company strives to launch a more competitive non-exposure scheme to enhance the competitiveness of the company's equipment in terms of mass production economy.

Profit forecast and investment rating: we expect the company's 2023-2025 net profit to be 0.8 pound 1.3 billion yuan, corresponding to PE, which is respectively times that of 98-58-45. Maintain "overweight" rating risk hint: acquisition is not as expected; photovoltaic overcapacity