All the subdivided product lines have achieved eye-catching breakthroughs, and the company's 2023H1 revenue has bucked the trend.
2023H1 achieved revenue of 219 million yuan, + 3.23% year-on-year, and net profit of 25 million yuan,-31.47% year-on-year. In a single quarter, 2023Q2 achieved revenue of 138 million yuan, + 9.77% year-on-year, + 69.32% month-on-month, and net profit of 17 million yuan,-34.66% year-on-year, + 108.45%.
Affected by the volume of the company's new product line, the overall gross profit level of the company has increased steadily. 2023H1 achieved a gross profit margin of 41.29%, year-on-year + 0.89pct, and net profit rate of 11.26%, year-on-year-5.70pct.
In a single quarter, 2023Q2's gross profit margin is 41.45%, year-on-year + 2.53pct, month-on-month + 0.45pct; company net profit is 12.11%, year-on-year-8.23pct, month-on-month + 2.27pct. With the rapid expansion of the company's smartwatch chips in the Indian market, the company's comprehensive gross profit margin has risen steadily.
Continue to increase investment in research and development, deep ploughing AIoT intelligent terminal audio. The company insists on investing heavily in R & D in core technology and strategic development direction, and in R & D in the three dimensions related to computing, low-delay and high-quality audio on the premise of wireless communications and low power consumption. 2023H1's 2023H1 R & D expenditure is 74 million yuan, + 26.79% compared with the same period last year, and the R & D expense rate is 33.76%. In the future, the company will increase the edge computing research and development and layout of wireless communication technology in end-side devices, and dig deep into the audio field of AIoT intelligent terminals.
The first-generation smartwatch chip is sold in the Indian market, and the second-generation watch chip has been officially released. The company's first generation smartwatch chip ATS3085L/85C/85 has entered the stage of large-scale mass production, including Noise, Fire-boltt, BoAt, XIAOMI and other brand customers a number of terminal watch products have been officially on the market, and start quantity quickly. The company's second-generation smartwatch chip has been officially released, is in the client program development stage, and is expected to have products on the market this year.
Mature market head brand customers continue to infiltrate, power end-to-side low-power edge computing. Sony Group Corp's new product equipped with the company's high-end Bluetooth speaker chip in 2023 has been released and gradually increased; in the radio headset and wireless microphone market, the company continues to expand brand customers. At the same time, the company has increased investment in head-brand customized dedicated audio DSP chips, and increased investment in low-power edge computing in end-side devices, and is integrating general neural network processors (NPU) into new generation products, which will give priority to AI algorithm hardware acceleration engine based on general memory computing architecture.
Profit Forecast: we estimate that the company's net profit in 2025 will be RMB 162m in 2025, and the corresponding share price PE will be multiple of 54-37-23, maintaining a "buy" rating.
Risk tips: new product research and development is not as expected, downstream expansion is not as expected, consumer demand continues to be weak.