Q2 revenue growth, performance decline is mainly due to increased costs. According to the company's annual report for 23 years, 23H1 achieved revenue of 1.854 billion yuan (year-on-year-1.63%), net profit of 177 million yuan (year-on-year-27.72%), and non-net profit of 111 million yuan (- 42.41%). Q2 achieved revenue of 977 million yuan (year-on-year + 4.15%, month-on-month + 11.40%), net profit of 85 million yuan (year-on-year-35.57%, month-on-month-8.77%), and non-net profit of 48 million yuan (year-on-year-57.05%, month-on-month-23.35%). Q2 performance and month-on-month decline are mainly related to the increase in expenses, especially the R & D costs brought about by the microprism module project.
The business of optical components is under pressure, and the microprism module is in mass production smoothly. 23H1's optical components business achieved revenue of 806 million yuan, down 25.66% from the same period last year, which is expected to be related to the sluggish demand in the smartphone market. The company's micro-prism module was successfully mass-produced in June and released with customers' new models in the second half of the year. The peak season of consumer electronics is approaching, which is expected to contribute more performance increments.
Thin film optical panel business continues to develop. The revenue of 23H1's thin film optical panel business reached 682 million yuan, an increase of 48.32% over the same period last year. The product specifications of the company's mobile camera cover cover the new model of the terminal, and get the opportunity to expand the flat side key project and successfully achieve the target. At the same time, we actively explore the application opportunities of the products in the fields of smart wear, smart home, UAV, floor sweeping robot, motion camera and so on.
The application of semiconductor optics continues to expand. 23H1's semiconductor optics business achieved revenue of 62 million yuan,-50.75% compared with the same period last year, mainly due to the slowdown in smartphone 3D imaging technology innovation and market orders that fell short of expectations. The company promotes the technology research and development and mass production of narrowband filters, vehicle diffuser, chip coating, chip packaging cover and many other new products. In the future, semiconductor optical products are expected to be more widely used in new Android mobile phones and non-mobile end Internet of things, smart home, financial mobile payment, optical communications and other emerging industries.
The high revenue of automotive electronics has won a number of new HUD fixed points at home and abroad. The revenue of 23H1's automotive electronics business reached 1.322 billion yuan, an increase of 95.65% over the same period last year. The company HUD realized AR-HUD all-department standard on Changan Deep Blue S7 model, newly entered Changan Mazda, Geely, Dongfeng and other mainframe factories, obtained more than ten fixed-point projects, and successfully won all the AR-HUD and W-HUD projects of Jaguar Land Rover EMA platform, becoming the first domestic HUD tier 1 supplier to enter overseas head vehicle factory. With the mass delivery of AR-HUD models in the second half of the year, the growth of the company's automotive electronics business is expected to accelerate.
Profit forecast. We estimate that the operating income of the company will be 5.345 billion yuan / 7.01 billion yuan / 8.547 billion yuan respectively from 2023 to 2025, and the net profit from 2023 to 2025 will be 5.32 yuan 0.63 yuan, corresponding to EPS 0.38 yuan, 0.48 yuan per share, respectively. Considering the valuation level of the comparable company, we give the 23-year PE valuation range of 30-35x, corresponding to the reasonable value range of 11.40-13.30 yuan. Maintain the "better than the market" rating.
Risk hint. The risk of raw material price fluctuation, the risk of downstream demand fluctuation.