Event

According to the company's semi-annual report for 2023, from January to June 2023, the company achieved operating income of 288 million yuan, down 30.45% from the same period last year, and its net profit was 27 million yuan, down 40.51% from the same period last year.

Main points of investment

23H1 profits are under pressure and gross profit margins are down. In the single quarter of 2023 Q2, the company achieved operating income of 157 million yuan, down 21.17% from the same period last year, an increase of 19.04% compared with the same period last year; the net profit returned to the home was-16 million yuan, down 194.08% from the same period last year and 138.21% from the previous year. During the reporting period, although the company's shipments increased slightly compared with the same period last year, with an increase of more than 100% month-on-month, the Q2 gross profit margin fell further to 18.42% because the unit price of the product dropped significantly compared with the same period last year, and the revenue side was still under pressure.

Striding into the field of industrial control and automotive electronics, the car gauge BAT32A series MCU run-up domestic car gauge "core" products. The company is gradually moving forward from consumer level to industrial control and automotive electronics, and the main R & D projects currently being engaged in include the R & D project of main control chips for large household appliances, the research and development project of MCU series chips at vehicle specification level, the chip research and development project based on 55cm 40nm process, the next generation motor series chip project and so on. Based on the Arm Cortex-M0+/M4 core, the company's MCU BAT32A series MCU has entered the stage of mass production and commercial delivery with strong computing performance, large capacity storage space, rich peripheral functions and excellent low-power performance. BAT32A233, an ultra-high performance-to-price product for body control and automotive brushless DC motor applications, has been tested in several Tier1, the market response is good, and Q3 is expected to be supplied in bulk. BAT32A337, the first domestic product that meets AEC-Q100Grade 0, is currently certified by a third-party organization SGS. The working temperature of the product is-40 ℃ ~ 150 ℃. It is suitable for complex operating conditions and harsh environment of vehicles, and will be mainly used in automotive thermal management applications. The chip resources and processing capacity of BAT32A239 and BAT32A279 series in line with AEC-Q100 Grade 1 standard have been comprehensively improved. With excellent performance, energy efficiency and cost performance, BAT32A239 has been in mass production and project development in the car body domain and auxiliary driving domain, such as ripple anti-clamp, ultrasonic radar, safety seat, digital key, electric taildoor, front and rear headlights and so on.

Investment suggestion

We estimate that from 2023 to 2025, the company's income will be 7.10 pounds 9.33 yuan / 1.231 billion yuan respectively, and the net profit of returning to the mother will be 0.10 pounds 0.34 billion yuan respectively. Give a rating of "overweight".

Risk Tips:

The recovery of market demand is not as expected; the progress of new products is not as expected; the market competition is intensified and so on.