Incident: The company released its 2023 performance report. In 2023, it achieved revenue of 706 million yuan, +0.84% year-on-year, and realized net profit of 69 million yuan, or -19.48% year-on-year, after deducting non-net profit of 59 million yuan, or -28.46% year-on-year.
According to estimates, in the 2023Q4 single quarter, the company achieved revenue of 220 million yuan, +0.03%/month-on-month +11.77%, and realized net profit of 0.17 million yuan, -38.13%/month-on-month -29.66%, after deducting non-net profit of 0.13 billion yuan, -52.00% YoY/-30.31% month-on-month.
High costs and expenses put pressure on corporate performance. Revenue side: Affected by the global economy and market environment, the release of industry demand has been slow, and the company's business development, manufacturing, project delivery schedule and revenue recognition cycle have been affected, leading to a slowdown in the company's overall revenue growth rate. Profit side: 1) The IPO fundraising project is ready for use, and depreciation costs increase after the relevant assets are converted. 2) The company increased R&D investment/market development/talent introduction, and increased R&D expenses and operating costs. 3) The company issued 480 million yuan of convertible bonds in 2023. Interest is calculated based on actual interest rates, and financial expenses have increased.
Wait for businesses such as semiconductors and special equipment to grow. 1) New energy: The company's contact point group is exported to the American company Gergawak. The end customers include the US company T, and products such as next-generation contactors/control boxes have been successfully developed, and future revenue and profitability are expected to improve. 2) Semiconductors: The performance of the company's semiconductor vacuum capacitors is comparable to overseas competitors such as Comet and Mingdensha. Research and development of high-performance refined vacuum capacitors in the etching field is progressing in an orderly manner, and future localization space can be expected. 3) Special equipment: In the field of aerospace and other special equipment, the company entered early, product models and application scenarios continued to expand, and sales revenue increased steadily; downstream manufacturers have strict certification, high entry threshold, and the company's supply position is stable. 4) Active devices:
The company's GD8262 series P1 and P3 speed regulators, 648MHz/1.2mW long pulse rate regulators have already been used by clients, demonstrating the company's underlying vacuum electronics technology strength.
Investment advice: The company has high barriers in the field of electric vacuum, and short-term revenue and expenses are putting pressure on performance. There is plenty of room for future development in the semiconductor and special equipment businesses. We expect the company's net profit to be 0.69/1.01/205 million yuan in 2023/2024/2025, EPS of 0.72/1.05/2.13 yuan/share, corresponding PE of 50.21/34.30/16.88 times, maintaining the “increase” rating.
Risk warning: risk of falling demand for new energy vehicles; risk of adverse development of downstream application areas; risk of trade friction; risk of R&D projects falling short of expectations.