Incidents:
On January 29, 2024, the company released its 2023 annual performance forecast. It is expected to achieve net profit of 63-72 million yuan, an increase of 105.22%-134.53% over the previous year; it is expected to achieve net profit without deduction of 6.09-699 million yuan, an increase of 111.95%-143.27% over the previous year.
Comment:
Revenue and profit are expected to increase, turning a loss into a profit. The company expects to achieve a median net profit of 675 million yuan in 2023, with a year-on-year increase of 119.87%. Among them, Q4 achieved a median net profit of 276 million yuan, an increase of 258.44% over the previous year; Q4 achieved a median net profit deducted from mother of 268 million yuan, an increase of 318.75% over the previous year, and a significant increase in profit. Benefiting from the company's intelligent manufacturing equipment technology and service quality, the company strengthened its market expansion. The sales scale continued to grow over the previous year, and the gross margin of some products increased, leading to a significant increase in overall profit.
Consumer electronics+semiconductor two-wheel drive creates a hyperbola of performance growth. The company focuses on the field of automation equipment, and the downstream covers various application scenarios such as consumer electronics, semiconductors and new energy sources. Companies in the consumer electronics and new energy industry provide a variety of non-standardized automated equipment for assembly and testing; in the semiconductor, photovoltaic and lithium battery industries, they provide such as crystal fixing equipment, sorting equipment, wafer defect inspection machines, chamfering roughness measurement, wafer character detectors, wafer laser marking machines, wafer laser slotting machines, lithium battery cutting all-in-one machines, winders, lithium battery cell assembly equipment, and photovoltaic module automation stand-alone machines and complete lines. In the first three quarters, 80% of the company's revenue came from consumer electronics and 10% from semiconductors, forming a good two-wheel drive. The company entered the field of wafer inspection equipment through the acquisition of Japan's OPTIMA, the world's leading supplier of wafer inspection equipment. Through the continuous efforts of R&D personnel, the company expanded the range of semiconductor equipment. Customers covered many major domestic and foreign manufacturers such as Samsung, and achieved further breakthroughs in the high-end integrated circuit equipment market. In the future, with the further expansion of the company's non-graphic wafer inspection equipment, it is expected to achieve a rapid breakthrough in the future wafer equipment market.
Contract liabilities have increased significantly, and downstream customers continue to be developed. The company's contract liabilities for the first three quarters of 2023 were 6.18/98/1,471 billion yuan, respectively, and the order growth trend was obvious. Looking at downstream customers, the company's new contract liabilities are mainly semiconductor testing equipment and consumer electronics assembly and testing equipment. Among them, semiconductor customers include Summco, Jinruihong, Samsung, and Zhonghuan. At the same time, the company's photovoltaic equipment has been exploring the market and is expected to achieve more growth in performance.
Covered for the first time, a “gain” rating was given. I am optimistic that the company will continue to make efforts in the field of high-end automation equipment to achieve multi-dimensional development of consumer electronics, semiconductors, and new energy sources. The company is expected to achieve revenue of 39.66/51.47/6.392 billion yuan in 2023-2025, and net profit of 6.55/7.72/8.83 yuan to mother.
Risk warning: Valuation and profit forecasts fall short of expectations; downstream demand falls short of expectations.