Event: the company released 23 mid-year report: 1) 23H1: revenue 4.2 billion yuan, yoy-13.8%, home-279 million yuan, yoy-370%, deduction non-home-300 million yuan, yoy-540%, home and deduction non-home are close to the lower limit of the forecast. 2) 23Q2:
Revenue 2.24 billion yuan, yoy-21.8%,qoq+14.5%, return to mother-102 million yuan, yoy-261%,qoq+42.5%, deduction non-return mother-115 million yuan, yoy-421%,qoq+37.9%.
23H1 revenue and profit are under pressure, 23Q2 profit improved month-on-month. The revenue of 23H1's optical / touch display / terminal manufacturing business reached 1.44 billion yuan respectively. In yoy-24.7%/-40.0%/+83.3%, the year-on-year decline in optical business was mainly affected by weak demand for high-definition wide-angle and mobile phone lenses, as well as lower-than-expected sales of NIO Inc. 's 23H1. In terms of profitability, 23H1's gross profit margin is 8.91%, yoy-2.15pct, mainly due to slight improvement in optical / touch business gross profit margin yoy-2.56pct/-2.93pct,23Q2 company's profitability, gross profit margin increased to 9.45% month-on-month, R & D expense rate of 4.3% QoqMur4.6 pct.
23H2 vehicle optics is expected to achieve high growth, driving the company to optimize profitability. The company is a leading manufacturer of ADAS lenses / modules, working closely with NIO Inc., T customers, BYD, Mobileye, NVIDIA Corp, overseas Tier1, etc., the core customer NIO Inc. sales hit a record high in July, 23H2 Hefei plant production climbing will also provide an effective guarantee for vehicle optical volume growth.
In addition, in order to shorten the North American customer delivery cycle, the company plans to build a plant in Mexico, supporting the superimposed yield advantage, the company is expected to win more share of T customers, but also use the advantage of overseas resources to tap North American potential customers. The vehicle optical gross profit margin is high, and the continuous volume of the business is expected to lead the company to optimize its profits.
The plastic lens of mobile phone is expected to bring new growth, and the transformation of traditional business continues. The company's mobile optics is expected to benefit from the trend of glass lens upgrading, and the company continues to promote the transformation of traditional business, mobile optics to expand VRAR and machine vision applications, and traditional touch control to vehicle screens. In the field of vehicle optics, in addition to cameras, atmosphere lights, lidar, AR-HUD and other businesses will also continue to contribute to growth.
Investment suggestion: considering the pressure on traditional touch display business and mobile phone module business, we lowered our previous profit forecast and estimated that the company's net profit in 2023-25 is-0.3 billion yuan (corresponding to the previous value of 50 million yuan in 2023-24), corresponding to the previous value of 50 million yuan in 2023-24, and the "buy" rating is 24 times that of PE in 2024-25.
Risk reminder events: car intelligent upgrade is not as expected, terminal demand is not as expected, capacity construction is not as expected, and the information used in research and report is not updated in a timely manner.