With the gradual digestion of downstream inventory, the company's 2023Q2 revenue has increased compared with the previous month. 2023H1 achieved an income of 248 million yuan, + 20.41% compared with the same period last year, and realized a net profit of-175 million yuan. Among them, the income of 5G module is 182 million yuan, which is + 153.21% compared with the same period last year. In a single quarter, 2023Q2 achieved revenue of 128 million yuan, + 26.43% year-on-year, + 6.31% month-on-month, and realized net profit of-110 million yuan.
The proportion of shipments of 5G products is expected to increase, which will pull the gross profit margin back up. 2023H1 achieved a gross profit margin of 16.95%, year-on-year + 1.67pct. In a single quarter, 2023Q2's gross profit margin was 10.69%, year-on-year-6.22pct, month-on-month-12.93pct. Mainly due to the increase in the proportion of 2023Q2's 4G product shipments, which lowers the overall gross margin level, the company's gross profit margin will rise in the future with the increase in 5G product shipments and the gradual rebound in product prices with the marginal improvement of the competitive environment.
With the expansion of revenue and the gradual digestion of share payment fees, the company's profitability is expected to improve.
At present, the company is still in the stage of losing money. First, due to the implementation of equity incentives, the share payment fees in 2020-2022 are 0.16 and 2.63 billion yuan respectively, and it is estimated that the share payment fees in 2023-2024 are 1.21 and 74 million yuan respectively. In addition, in order to ensure that the products keep up with the downstream market demand, the company has made high R & D investment. With the expansion of the volume of income and the gradual digestion of share payment fees, according to the company's prospectus, the company is expected to break even when its income exceeds 1.3 billion yuan.
Continuously iterate the complete solution of 5G full band and launch a number of new product portfolios. The company will produce 5G new band L-PAMiF in 2020, gradually improve the 5G new band single-band and dual-band L-PAMiF, L-FEM and other product portfolio, and launch 5G re-tillage band transmission module. At present, the company has successfully mass produced 5G re-ploughing band L-PAMiD, 5G new band small size and high integration n77/n79 dual-band LPAMiF, 5G new band high performance-to-price N77 single-band L-PAMiF and L-FEM, L-PAMiF and MMMB PA supporting 5G full-band low-voltage PC2.
The company has covered domestic and foreign head mobile phone brand customers, the client share is expected to continue to grow. The company's RF front-end module has been mass produced in Samsung, vivo, OPPO, Glory and other customers, and has entered the ODM manufacturers of first-line mobile terminal equipment such as Wentai Technology, Huaqin Communication and Longqi Technology. RF front-end market competition has entered a white-hot stage, the industry competition pattern is expected to reshape, the company's market share in the downstream client is expected to continue to increase, promoting the company's revenue growth.
Profit Forecast: we expect the company's operating income in 2025 to be RMB 604 PS, which is 1.311 billion yuan, and the corresponding share price is 1.311 times that of 14-8-6, covering for the first time and giving an "overweight" rating.
Risk tips: new product research and development is not as expected, downstream expansion is not as expected, consumer demand continues to be weak.