Event: according to the company's half-yearly report for 2023, the revenue of H1 company in 2023 was 482 million yuan, down 22.34% from the same period last year; the net profit from the parent was 77 million yuan, down 59.89% from the same period last year; and the non-net profit was 59 million yuan, down 65.56% from the same period last year. On a quarterly basis, Q2 achieved revenue of 259 million yuan in 2023, down 17.98% from the same period last year, up 15.83% from the previous year; net profit from home was 48 million yuan, down 51.51% from the same period last year, up 68.18% from the previous year; deducting 39 million yuan from non-net profit, down 55.65% from the same period last year and up 90.05% from the previous year.
The downturn in demand has dragged down the performance of H1, and the profitability of Q2 has improved on a month-on-month basis: affected by the decline in market demand and high inventory in the industry, consumer electronics represented by smartphones have been correspondingly impacted. The market demand for smart sensors such as the company's focused image sensor chips is sluggish, and the business scale and profitability of H1 declined in 23 years compared with the same period last year. In 23 years, the gross profit margin of H1 company was 38.63%, year-on-year-11.06pcts, net profit rate was 16.54%, year-on-year-14.70pctscentury 23-year-on-year Q2 company gross profit margin was 40.71%, year-on-year-7.33pcts, month-on-month + 4.49 pcts, net profit rate was 19.03%, year-on-year-12.81pcts, month-on-month + 5.37 pcts, profitability improved in the second quarter. In terms of expenses, the rates of sales, management, R & D and financial expenses of H1 company in 23 years were 0.87% 8.01% 11.51% 2.46% respectively, with year-on-year changes of + 0.28/+3.07/-2.70/+0.25pcts respectively.
Continue to expand downstream applications, optimistic about the growth of the advanced packaging market: the company continues to focus on the development and service of advanced packaging technology in the first half of 2023, the technology reserve is increasingly diversified, and the application field is wider.
1) in the field of optics, the company continues to expand the business of micro optical devices and enhance the scale of mass production and commercial applications.
2) in the automotive electronics market, the company continues to improve the process level and mass production capacity of automotive specification STACK packaging technology, optimize production efficiency, and expand its technology leadership and business scale in the field of automotive CIS. 3) the company further strengthens the market share of packaging products in smart phones, security monitoring digital and other application fields; actively layout and expand new application markets, and vigorously promote project development and market expansion in MEMS, Filter, AR/VR and other application fields. According to the company's 23 mid-year report, according to Yole forecast analysis, the global packaging market is expected to grow at a compound annual growth rate of 6.9% to reach US $136 billion from 2022 to 2028, among which advanced packaging has become the key to semiconductor innovation, enhanced functionality, performance and cost-effectiveness.
Entering the field of car regulations, the international business continues to deepen: according to the company's 23 mid-year report, according to Yole data, it is expected that by 2028, the total shipments of on-board cameras will reach 402 million, including 360 °look around cameras, ADAS (Advanced Auxiliary driving) cameras, DMS (driver Monitoring system), OMS (passenger Monitoring system) in-cabin cameras and other applications will grow rapidly. The company continues to carry out international M & An integration and actively promote the extension and expansion of the industrial chain. 1) the company further increases its investment in Anteryon of the Netherlands, strengthens the complementary integration of business and technology, promotes the continuous growth of Anteryon's optical design and hybrid optical lens business, and improves the process and mass production capacity of crystal square optoelectric wafer level micro optical device manufacturing technology. 2) the company actively distributes automotive high-power gallium nitride technology, further deepens its equity cooperation with Israel VisIC, makes full use of its advanced packaging industry and technical capabilities, and carries out technology and industrial layout in order to grasp the industrial development opportunities of the third generation semiconductors in the field of new energy vehicles.
3) the company invests to set up a wholly-owned subsidiary in Singapore, sets up the company's overseas business center, R & D engineering center and investment and financing platform, and at the same time lays out the global production and manufacturing base to further promote the company's international development strategy.
Downgrade earnings forecast to maintain "buy" rating: the company is the first professional closed testing service provider of Chinese mainland to provide WLCSP mass production services for image sensor chips, ranging from wafer-level to chip-level one-stop integrated packaging services. In the future, the company's performance is expected to further improve due to the continued growth of demand related to electric vehicles and renewable energy. Due to the decline in the prosperity of the consumer electronics market such as mobile phones in the first half of 23 years, which affected the company's package shipments and revenue scale, the profit forecast was lowered. It is estimated that the company's net profit from 2023 to 2025 is 206 million yuan, 369 million yuan and 527 million yuan respectively, the EPS is 0.32 yuan per share, 0.57 yuan per share and 0.81 yuan per share, and the PE is 72X, 40X and 28X respectively, maintaining the "buy" rating.
Risk hints: industry fluctuation risk; technology industrialization risk; cost rising risk; global industrial chain restructuring downside risk; exchange rate fluctuation risk.