With the gradual warming of demand, the company's 2023Q2 revenue and profit increased significantly compared with the previous month. 2023H1's income was 373 million yuan,-20.89% year-on-year, and its net profit was 68 million yuan,-46.07% compared with the same period last year.

Among them, revenue from power protection chips accounted for 33.90%, power conversion chips accounted for 39.74%, display driver chips accounted for 4.11%, and other categories accounted for 22.25%. In a single quarter, 2023Q2's revenue was 195 million yuan,-5.85% year-on-year, + 9.30% month-on-month, and net profit was 41 million yuan,-33.52% year-on-year, and + 47.45% month-on-month.

Falling prices have led to a year-on-year decline in 2023H1 gross profit margin, but 2023Q2 decline has narrowed month-on-month.

2023H1 achieved a gross profit margin of 41.72%, year-on-year-4.06pct, and net profit of 19.21%, year-on-year-7.79pct. In a single quarter, 2023Q2's gross profit margin is 41.36%, year-on-year-5.78pct, month-on-month-0.75pct; company net profit rate is 21.85%, year-on-year-7.78pct, month-on-month + 5.51pct.

The company is deeply engaged in power management chips, and the performance of some products has exceeded that of international competitors. The company's main products include power protection chip, power conversion chip, display driver circuit, intelligent network delay management unit, signal chain chip, high-precision Hall chip and others. Among them, the performance index of the company's main power conversion chips and power protection chips has reached or exceeded the international and domestic bidding products, and has accumulated a lot of development experience by bidding with TI and other well-known enterprises in the international business.

Research and development investment continues to increase, product material number and downstream areas continue to expand. The R & D cost of 2023H1 is 57 million yuan, which is + 13.05% compared with the same period last year, and the R & D expenditure rate is 15.21%. In the future, based on its market position in the field of consumer electronics applications such as mobile phones, the company will consolidate and develop the company's domestic and foreign business under the guidance of market demand and technology cutting-edge trends, and continue to develop a full range of high-quality power management chips. actively expand the industrial control, medical electronics, automotive electronics, network communications and other markets, explore more new product lines in the field of power semiconductors, and steadily expand the field of product applications.

Key customer development strategy, the company has worked closely with Samsung for many years. The company officially entered the Samsung Electronics supplier system in 2010. In 2022, several of the company's main products in Samsung achieved the main supply, with a market share of 40-60%, and passed the supplier certification of mainstream consumer electronics brands such as XIAOMI, LG, Wentai and so on. At present, the company's end customers have covered Samsung, XIAOMI, LG, Wentai, Haier and other domestic and foreign well-known consumer electronics brands, and serve BYD, Hyundai and other well-known automobile customers.

Profit Forecast: we estimate that the company's net profit in 2025 will be $180 million, $231 million, respectively, corresponding to the share price of PE on September 26, which is twice that of 33-25-19, with a "buy" rating for the first time.

Risk tips: new product research and development is not as expected, downstream expansion is not as expected, consumer demand continues to be weak.