Event
Recently, the company released the semi-annual report of 2023, from January to June 2023, the company achieved operating income of 3.735 billion yuan, an increase of 28.56% over the same period last year, a net profit of 1.392 billion yuan, an increase of 16.22% over the same period last year, and R & D investment of 756 million yuan, an increase of 62.36% over the same period last year. Of this total, Q2 realized revenue of 2.194 billion yuan, an increase of 40.31% over the same period last year, and a month-on-month increase of 42.39%. The net profit of Q2 was 808 million yuan, an increase of 21.15% over the same period last year and 38.47% over the same period last year. In the first half of the year, the company continued to increase investment in R & D, actively open up potential markets, increased sales and maintained growth in operating performance.
Main points of investment
We will strengthen the research and development of new products for special integrated circuits. In the first half of the year, the company's special integrated circuit business achieved revenue of 2.164 billion yuan, an increase of 10.79% over the same period last year. The company's new generation of higher performance FPGA is about to complete research and development, continue to maintain a leading position in the industry, and the range of users continues to expand; in terms of special memory, the company's newly developed special Nand Flash has been introduced to the market, and the special new type of memory is about to be launched; the company's system-level chips represented by special SoPC platform products have been recognized by users, and the third and fourth generations of products have been completed and promoted. MCU, image AI intelligent chip has also completed research and development, began to promote; the newly developed high-performance bus products began to enter the promotion stage, all kinds of interface products are also constantly updated, and the market share continues to maintain a leading position; the development of digital signal processor DSP, video chip and other products is progressing smoothly and will soon enter the company's new special processor product line in the future. In addition, in the field of analog products, the company provides users with a complete set of secondary power solutions through a series of monolithic power supplies, power modules and supporting products around the power supply, and the market share continues to expand. The newly launched high-speed RF ADC has been recognized by major users in the first half of the year.
The intelligent security chip business has a good momentum of development. In the first half of the year, the company's intelligent security chip business achieved revenue of 1.462 billion yuan, an increase of 81.99% over the same period last year, of which shipments of chips such as telecom SIM, bank cards, second-generation identity cards and electronic travel documents maintained steady growth. The company and partners jointly launched the eSIM one-stop solution, supporting wafer-level personalized data writing, compatible with remote eSIM configuration and 5G connection, and obtained the SAS-UP qualification certificate of GSMA; the car digital key scheme has been successfully introduced in the client, realizing mass production and loading, which is the new performance growth driving force of the company in the future.
Crystal business energy storage high-quality development, power device business against the trend growth. In terms of quartz crystal frequency device business, the company achieved revenue of 90 million yuan in the first half of the year, a decrease of 33.35% compared with the same period last year.
The sales volume and price of the company's crystal products continued to decline, but the proportion of shipments of high-order differential oscillators continued to increase to meet the needs of areas such as optical modules and computing servers; continued to strengthen the research and development of miniaturized, high-frequency, high-precision products and industrialization key common technologies, SMD1612 OSC ultra-small size oscillator and other products were successfully developed. Semiconductor power devices business, the company deeply ploughed new energy vehicles, photovoltaic micro-inverse, special power supply and other markets, business income to achieve reverse growth. The company actively distributes OEM resources and has made a breakthrough in 12-inch OEM resources of IGBT, SGT and SJMOS. In addition, relying on the internal and external industrial synergy of Ziguang Group, we have achieved the introduction, certification and mass production of a number of products.
Investment suggestion
We estimate that the company will achieve an income of 87.67 yuan in 2023-2025, respectively, with an income of 111.36 trillion yuan, and a net profit of 30.76 billion yuan, respectively. The current stock price corresponds to 24 times, 19 times and 15 times of PE in 2023-2025, respectively, with a "buy" rating.
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.