Event: the company issued a three-quarter report in 2023, with operating income of 81 million yuan in the first three quarters, down 73.92% from the same period last year, and net profit of 128400 yuan, down 97.46% from the same period last year.
The chairman increased his holdings by a large amount to show his confidence. On October 26, 2023, the company issued an announcement that the company's actual controller, chairman and general manager, Mr. Lin Feng, increased its holdings of the company's shares within 6 months from the date of disclosure, including but not limited to centralized bidding or bulk trading, the amount of increase is between 20 million and 40 million yuan.
Firmly transform the semiconductor field. Following Suzhou Neixia Semiconductor Co., Ltd. and AvivaTechnology Holding, on August 2, 2023, the company announced that Wuhan Xinlian Microelectronics Co., Ltd., a wholly owned subsidiary, intends to transfer 51% of the shares of the original shareholders of Zhejiang Zhongke Kaipu Technology Co., Ltd. After the completion of the transaction, Zhongke Kepp will become a controlling subsidiary of the company.
There is a domestic alternative opportunity in the storage field. In the early days, Zhongke Kepp devoted itself to the research and development, production and sales of satellite communication terminal transmitting and receiving system. At present, its main business activities are the research and development, procurement and sales of solid-state hard disk. Zhongke Capp focuses on the design, production, sales and service of servers, customized modules, terminal equipment and other products based on Feiteng "Tengyun + Tengrui" CPU processor. Based on the continuous overseas policy on domestic science and technology restrictions, it is expected that the domestic Xinchuang industry will continue to advance, and China Kekip is expected to benefit from domestic alternative opportunities in the future.
Investment suggestion: the company continues to transform the semiconductor field and is expected to become the company's main business in the future. It is estimated that the EPS in 23-25 will be 0.22,0.32,0.50 yuan respectively, maintaining a "buy" rating.
Risk hints: the transformation is not as strong as expected; the development of semiconductor business is not as expected; the competition in the industry is intensified.