The performance improved month-on-month, and Q2's single-quarter income was equal to that of the same period last year.
In the first half of 2023, the company achieved revenue of 373 million yuan (year-on-year growth rate of-20.89%) and net profit of 68 million yuan (year-on-year growth rate of-46.07%). Of this total, 2022Q2 achieved revenue of 195 million yuan (year-on-year growth rate of-5.85%, month-on-month growth rate of 9.30%) and net profit of 41 million yuan (year-on-year growth rate of-33.52%, month-on-month growth rate of 47.45%). The company's semi-annual power protection chip revenue accounted for 33.90%, power conversion chip revenue accounted for 39.74%, display driver chip revenue accounted for 4.11%, and other categories accounted for 22.25%. Affected by the geopolitical and macroeconomic situation, the overall performance of the consumer electronics market is depressed, and the company's operating income is affected to a certain extent. at the same time, the level of gross profit margin has declined due to the influence of high inventory and high cost last year and low selling price in the current period. Domestic revenue share has increased, domestic brand mobile phones provide room for growth. Samsung accounted for 46% of the company's revenue in 2020, while Samsung and other customers accounted for a relatively stable share in 2020-2022. In the first half of 2023, the cooperation between the company and Samsung was going on in an orderly manner, and the domestic market kept growing as a share of the company's revenue. The company's share of revenue from Chinese mainland (excluding Hong Kong, Macao and Taiwan) continued to grow, reaching 49.88% in the first half of 2023. In the domestic mobile phone market, the market share of mainstream domestic mobile phone brands in the first half of 2023 is about 47%, and the market share of Sanxing is about 21%, so the company has more room for growth in domestic brand mobile phones.
Investment suggestion
As the mobile phone foundry enters the seasonal stock cycle in the second and third quarters, the company is expected to continue the growth momentum of the second quarter in the third quarter. As the consumer electronics cycle is still at the bottom, the strength of the rebound in the fourth quarter is not clear, so the company's performance forecast is slightly reduced, and the company is expected to achieve a net profit of 185 million yuan, 215 million yuan and 232 million yuan respectively from 2023 to 2025. The current stock price (September 15, 2023) corresponds to PE of 32.76,28.16,26.04 times respectively. Maintain a "buy" rating.
Risk hint
The risk of weak consumption downstream, the risk of customer concentration, the risk that new product research and development is not as expected, and the risk of intensified competition in the industry.