Incidents:
The company released its 2022 annual report. In 2022, the company achieved revenue of 1,106 billion yuan, a year-on-year decrease of 21.62%; realized net profit attributable to owners of the parent company of 228 million yuan, a year-on-year decrease of 60.45%; and realized net profit deducted from mother of 204 million yuan, a year-on-year decrease of 56.75%.
The company released its report for the first quarter of 2023. The company achieved revenue of 223 million yuan in the first quarter of 2023, a year-on-year decrease of 26.85%; expected to achieve net profit attributable to owners of the parent company of 0.29 million yuan, a year-on-year decrease of 68.92%; and expected to achieve net profit deducted from mother 20 million yuan, a year-on-year decrease of 75.84%.
Weak consumer electronics demand has put pressure on the packaging and testing business, and optical device revenue has increased dramatically:
The company's revenue in 2022 declined compared to the same period last year, mainly due to weak demand for downstream consumer electronics and weak market prosperity in the image sensor segment due to weak demand for downstream consumer electronics and high overcapacity inventories in the industry.
By product, chip packaging and testing's 22-year revenue was 857 million yuan, down 33.46% year on year, mainly due to the slump in consumer electronics markets such as mobile phones, and a decrease in packaging orders and shipments; optical devices had 22-year revenue of 239 million yuan, up 129.39% year on year, mainly due to increased market demand for semiconductor equipment, intelligent manufacturing, and agricultural automation, and the scale of the hybrid lens business continued to grow steadily. At the same time, the scale of commercial application of the company's wafer-level miniature optical device (WLO) business in the field of intelligent automotive interaction increased significantly. Looking at the Q4 single quarter, Q4 2022 achieved revenue of 231 million yuan, down 9.41% from the previous month; realized net profit to mother was 0.07 billion yuan, down 76.67% from the previous month, and the Q4 performance still declined. Looking at 23Q1, the company's revenue and net profit continued to decline year on year, mainly affected by the downturn in consumer electronics markets such as mobile phones.
The proportion of Anteryon continues to increase, and the commercialization of vehicles in the WLO business is progressing steadily:
According to the company's announcement on March 27, 2023, in order to further deepen collaborative innovation in business technology and increase the scale of business applications, Jingfang Optoelectronics plans to purchase 6.61% of Anteryon's shares from overseas shareholders. After the settlement was completed, the company held a total of 81.09% of Anteryon's shares through Jingfang Optoelectronics and Optiz Inc., further increasing the shareholding ratio. Through this acquisition, the company further enhanced the integration of WLO's business.
Currently, WLO is mainly used in car welcome lights, and is in the rapid release stage. It is expected to further expand into car headlights in the future and become the company's second growth curve.
Investment advice:
We expect the company's revenue from 2023 to 2025 to be 1,421 billion yuan, 2,818 billion yuan, and net profit to mother of 306 million yuan, 572 million yuan, and 747 million yuan respectively, maintaining “buy-A”. According to the wind industry's unanimous expectations, the average PE in the industry is 56.10, and the target price is 56.10 x 0.47 PE, which is 26.37 yuan.
Risk warning: Downstream demand is at risk of decline, market competition is increasing risk, and technology development falls short of expected risk.