Event: according to the company's semi-annual report for 2023, 23H1 achieved revenue of 566 million yuan, year-on-year + 1.70%, net profit of 49 million yuan, + 32.01%, deduction of non-net profit of 41 million yuan, + 26.99%, gross profit of 37.96%, and + 4.46pct. 23Q2 achieved revenue of 269 million yuan in a single quarter, year-on-year-3.36% / month-on-month-9.18%, net profit of 19 million yuan, + 46.40% / month-on-month-38.10%, deducted non-net profit of 14 million yuan, + 9.48% / month-on-month-47.08%, gross profit 39.59%, year-on-year + 5.00pct/ + 3.11pct.
Structural optimization profit improvement, revenue profit double increase compared with the same period last year: revenue end, the company's new energy lithium laser domestic substitution to promote the growth of laser product revenue, weak demand in the passive components industry and continuous laser strategic transformation led to a year-on-year decline in related business revenue, a comprehensive impact on overall revenue year-on-year increase. At the profit end, benefit from product structure optimization, low gross margin sheet metal cutting business shrank, and the overall gross body ratio increased significantly; in terms of expenses, the Huizhou laser R & D building transferred to fixed assets in serviceable state, increased depreciation and amortization expenses, and increased management expenses; comprehensive impact on year-on-year profit growth. Looking forward to the follow-up, the company's new energy laser domestic replacement continues to promote, around the big customer module testing equipment space is broad, multi-channel cloth director slope thick snow, long-term growth momentum is abundant.
Module testing equipment customization needs are diverse, embrace customer innovation cycle 1) MR testing: in 2023 the company assists customers to develop their second-generation MR products and plans to join more optical testing projects. In addition, the company is also cooperating with North American customers to develop a variety of new testing and calibration equipment for the future product form of XR, and the company is actively contacting the product testing needs of domestic head customers. In the future, with the official launch of MR products, it is expected to lead a new round of consumer electronics innovation wave and stimulate industrial growth.
2) camera detection: affected by the upgrading of terminal products and the relocation of the industrial chain to China, the domestic camera module detection link has obtained a new market demand. At present, the company's camera module testing and calibration equipment has been recognized by North American customers, and the customer camera module has a multi-project mass production plan this year and next. According to the current number of cooperation projects and the progress of cooperation, it is expected that orders related to camera module testing equipment are expected to achieve good growth in the future.
3) VCSEL testing: with the improvement of customer VCSEL chip module integration and the reduction of module size, the company is expected to get involved in more process segments and equipment in VCSEL chip module production. At present, the second generation product solution has been launched exclusively according to customer demand, which has been greatly improved in terms of testing efficiency and testing yield, and the equipment prototype has passed customer acceptance.
New energy layout results, lithium + photovoltaic business orderly landing 1) Lithium: the growth rate of new energy vehicles has slowed down, and the expansion of power batteries for lithium customers has been delayed, but the energy storage battery is still booming. The company obtained new orders for lasers and accessories on the customer's energy storage production line in 2023. In the new round of laser procurement of lithium electric high-speed demonstration production line, the company's laser products have largely replaced imported lasers, which has become the customer's first choice in lithium electroprocessing.
2) Photovoltaic: TOPCon SE laser-doped light source for crystalline silicon battery has been shipped in the first batch in the industry. Perovskite laser equipment in 2023 has won Xiexin photoelectric 100MW perovskite photovoltaic battery production line laser marking complete equipment order, and at the end of July smooth delivery, the company has begun layout research and development of the next generation GW production line, the future perovskite technology route with its own technology maturity, the company is expected to occupy a more important position in the photovoltaic industry.
Investment advice: the company's performance continues to grow, downstream module testing, new energy equipment is progressing smoothly, we judge that the company is expected to enter a period of rapid growth. We estimate that the company's annual return net profit on 23-24-25 will be 1.35 Placement 250 Universe 377 million yuan, EPS 1.42 Placement 2.63 Plus 3.97 yuan per share, corresponding to PE 53.89 Plus 29.12 Plus 19.30 times, maintaining the "overweight" rating.
Risk tips: XR terminal demand is lower than expected; the prosperity of new energy is declining downstream; industry competition aggravates the risk.