Incident: The company released its 2023 annual report and 2024 quarterly report. For the full year of 2023, it achieved revenue of 2.43 billion yuan, -11.0% year on year, realized net profit of 150 million yuan, or -44.8% year on year. After deducting non-net profit, it was 0.3 million yuan, or -72.8% year over year.
23Q4 achieved revenue of 885 million yuan, -2.8% year-on-year, +103.6% month-on-month. 23Q4 increased product delivery in the display and semiconductor sector, and revenue recognition improved significantly. 23Q4's comprehensive gross margin was 55.64%, +11.1pct year over year and +7.1pct month-on-month. The company increased sales of products with a mature technical level and high gross profit margin, while the semiconductor business drove the comprehensive gross profit margin. 23Q4 deducted non-net profit of 114 million yuan, +208.9% year-on-year.
24Q1 revenue was 418 million yuan, -30.5% YoY and -52.7% YoY, mainly affected by the display sector. As the downstream market gradually picked up, the company's display business began to gradually recover. As deliveries increased, revenue recognition for the second quarter is expected to improve month-on-month. Contract debt at the end of 24Q1 was 415 million yuan, +92% year over year, +7% month on month, and orders continued to grow.
Revenue in the semiconductor sector is growing rapidly, and there are plenty of on-hand orders. In 2023, the company's semiconductor revenue was 395 million yuan, +116% year over year. 24Q1 achieved semiconductor revenue of 130 million yuan, +96% year over year. As of April 22, '24, the company's semiconductor sector had orders of 1,602 billion yuan, a significant increase over the same period last year. The company is one of the leading domestic semiconductor testing equipment companies, with sufficient orders. As domestic fabs expand production and increase in localization demand, the company's semiconductor business is expected to maintain rapid growth.
The capital was increased to Hubei Jiangcheng Laboratory Technology Service Co., Ltd. to strategically lay out the field of advanced packaging. The rapid development of data centers, supercomputing, AI and other industries has brought strong demand for high-performance chips. The company strategically lays out the field of advanced semiconductor packaging and deepens strategic cooperation and binding with core customers.
Profit forecast: The company's 24-26 revenue is estimated to be 30.10, 37.39, and 4.441 billion yuan, respectively, and net profit to mother is 2.89, 4.35, and 575 million yuan. The company's semiconductor front-end measurement equipment business is expected to maintain rapid growth and maintain an “gain” rating.
Risk warning: customer concentration risk; downstream customer capital expenditure fluctuation risk; customer verification risk