According to the company's semi-annual report for 2023, during the reporting period, the company achieved operating income of 491 million yuan, an increase of 10.94% over the same period last year, a net profit of 195 million, an increase of 0.67% over the same period last year, and a non-return net profit of 173 million yuan, down 1.22% from the same period last year. EPS is 1.12 yuan per share.
The company's performance is growing steadily. During the reporting period, the company realized operating income (491 million, year-on-year + 10.94%) and homed net profit (195 million, year-on-year + 0.67%). The revenue of precision guidance products was 491 million, an increase of 10.94% over the same period last year. Communication data link products and other businesses have no revenue, and the volume is also very small in the same period last year.
Profitability and period expense rates have increased. In terms of profitability, the company's overall gross profit margin during the reporting period was 53.67%, an increase of 4.84pct over the same period last year. During the period, the company's expenses were stable, with sales expenses (6.576 million, + 605.61% compared with the same period last year), mainly due to the increase in equity incentives to increase the current share payment and product sales growth, and the increase in product quality premium; management expenses (32 million, year-on-year + 69.65%), mainly due to increased share payments from equity incentives; R & D expenses (22 million, year-on-year + 16.66%) The financial expenses (- 4.4492 million, compared with-10.2653 million in the same period last year) are mainly due to the strengthening of fund management in the current period and the decrease in the average balance of demand deposits. The expense rate during the period was 6.87%, an increase of 4.77pct over the same period last year. The net profit rate of sales was 39.70%, which was lower than that of the same period last year by 4.06pct.
Increase revenue and reduce expenditure strategy to effectively enhance the value of the company. At the end of the reporting period, the company's inventory was 1.885 billion, up 504 million from the beginning of the year; and the contract liability was 536 million, up 156 million from the beginning of the year. The increase in inventory and contract liabilities reflects that the company has plenty of orders on hand and sufficient deliverable products, and the company's turnover will fully grow as downstream customers confirm receipt of the goods. At the same time, in order to cope with the price reduction trend of the industrial chain, the company has firmly and steadily consolidated its own industry position through product design optimization and process improvement.
The company carries out restricted stock incentives to fully mobilize the enthusiasm of core employees. In October 2022, the company implemented equity incentive, granted 3 million restricted shares for the first time, and paid 26.4859 million yuan for shares during the reporting period. We believe that this incentive plan covers a wide range of areas and has a strong incentive, which is expected to fully mobilize the enthusiasm of the company's senior managers and core backbone talents, and effectively combine the interests of shareholders, the company's interests and the personal interests of managers, so as to promote the steady and rapid improvement of the company's business performance.
The application market of active phased array is vast, and the company, as a leading company in the industry, directly benefits from the expansion of the industry market. As the current development trend of radar, active phased array has a wide range of applications in the fields of radar detection, electronic warfare and satellite communications. We believe that the company may ensure the stable development of its precision guidance business, or it will enter the satellite communications market by virtue of the previous technology accumulation in the satellite market, enjoy the dividends brought by the high prosperity of the satellite Internet, and gradually distribute the electronic warfare market.
Profit forecast: the company's return net profit from 2023 to 2025 is 339 million, 410 million and 496 million respectively, corresponding to a valuation of 31, 26 and 21 times, maintaining a "highly recommended" rating.
Risk hint: military purchase orders fluctuate and market competition intensifies.