E _ Su:mm ary]
In the first half of 2023, the company achieved revenue of 345 million yuan, down 36.6% from the same period last year; net profit from home was-8 million yuan, down 106.1% from the same period last year; and net profit from non-return was-26 million yuan, down 124% from the same period last year.
Graphics display control, chip revenue under pressure, Q2 revenue growth rate picked up. 2023H1, affected by macroeconomic fluctuations, downstream industrial demand fluctuations, changes in sales structure and other factors, the company graphics control, chip business revenue declined. The realized income of products in the field of graphics display and control, chip products and small specialized radar products was 2.11 million yuan, respectively, which was changed by-19.52% pictorial 79.21% and 16.31% respectively compared with the same period last year. The gross profit margin was 66.7%, 44.2% and 65.1%, respectively, down 5.47/3.84/7.69pct from the same period last year. In a single quarter, the company's Q2 revenue recovered obviously. 23Q2 achieved revenue of 280 million yuan, + 54% of the same period last year, and net profit of 63 million yuan, + 33% of the same period last year. Looking forward to the whole year, we believe that with the gradual recovery of Xinchuang and military procurement, the company's revenue growth is expected to continue to repair.
Under the warming trend of Xinchuang, a new generation of products is expected to expand. The company's latest GPU product JM9 series graphics processing chips significantly improve the performance than the previous generation products JM7, and fully adapt to Feiteng, Kunpeng, Haiguang, Kirin, Tongxin and other domestic basic software and hardware ecology, has gradually realized in government affairs, telecommunications, electric power, energy, finance, rail transit and other fields of pilot application. The previous generation products of the company are in the absolute leading position in the party and government Xinchuang market. With Xinchuang bidding returning to the peak, Xinchuang GPU market is also expected to pick up, and the new generation product JM9 is expected to expand.
The fixed increase will cut into the field of general computing and open up a broad market space. The company recently issued a fixed increase plan, raising a total of no more than 3.974 billion yuan for high-performance general-purpose GPU chip research and development and industrialization projects and general GPU advanced architecture R & D center construction projects. This fundraising project will work with third-party chip packaging and testing manufacturers to build a dedicated advanced packaging and testing production line, which will continue to promote GPU products to break through the existing process restrictions. The company's current products are mainly used in the traditional graphics processing field, the implementation of this fund-raising project is expected to help the company cut into the general GPU field and open up the broad space of AI computing market.
Investment suggestion: as the leading GPU enterprise in China, the company is expected to benefit from the recovery of Xinchuang industry. At the same time, the company announced that it plans to cut into the field of general GPU, which is expected to open up a broad market space for AI computing power. It is estimated that the EPS of the company will be 0.76 / 1.05 / 1.46 yuan respectively from 2023 to 2025, maintaining the "buy" rating.
Risk tips: the promotion of Xinchuang is not as expected, product research and development is not as expected, military information expenditure is not as expected, and the risk of rising raw material costs.