For the full year of 2023:1) Achieved revenue of 793 million yuan, -12.07%; realized net profit of 191 million yuan, or -30.13% year-on-year; realized net profit of 150 million yuan without return to mother, or -36.93% year-on-year. 2) The gross profit margin for the whole year was 47.3%, -4.61 pct; net profit margin to mother 24.1%, -6.23pct year on year; net profit margin after deducting non-return to mother 18.88%, -7.44pct year on year. 3) The cost rate for the period was 25.81%, +4.57pct year on year, and the sales/management/R&D/finance expense ratios were 8.61%, 4.83%, 13.93%, and -1.57%, respectively, with year-on-year changes of +0.76, -0.17, +1.32, and +2.66pct, respectively.
2024Q1 in a single quarter: 1) Achieved revenue of 225 million yuan, +4.08% year over month, +13.02% month on month; realized net profit of 60 million yuan, +8.63% year on year, +71.55% month on month; realized net profit without return to mother of 49 million yuan, +6.26% year over year, and +152.35% month on month. 2) Gross profit margin 49.51%, year-on-year -1.74pct, month-on-month +12.49pct; net profit margin to mother 26.56%, +1.11pct year-on-month, +9.06pct month-on-month; net profit margin after deducting non-return to mother 21.94%, +0.45pct year-on-year, +12.11pct month-on-month. 3) The cost rate for the period was 24.33%, -2.26pct year on year, and the sales/management/R&D/finance expense ratios were 7.19%, 5.06%, 12.54%, and -0.47%, respectively, with year-on-year changes of -1.19, -0.61, -0.68, and +0.23pct, respectively.
By product: precision welding and assembly equipment, revenue of 528 million yuan, -20% year-on-year, gross profit margin of 52.06%, year-on-year -2.48pct; machine vision process equipment, revenue of 100 million yuan, -11.40%, gross profit margin 53.12%, year-on-year +1.74pct; solid-crystal bonding and packaging equipment revenue of 124 million yuan, +57.4%, gross profit margin of 33.85%, year-on-year +3.26pct; complete intelligent manufacturing equipment, revenue of 140 million yuan, +26.7% year-on-year, gross profit margin of 27.93% -12.25pct.
Demand for consumer electronics weakened in '23, and the company's performance in '23 was slightly affected, and demand recovery is expected to accelerate in '24.
Demand in the consumer electronics industry was weak in 2023, and the business performance of upstream equipment manufacturers was under pressure. The company's annual revenue growth rate and gross margin declined due to industry sentiment. Furthermore, the exchange earnings base was high in '22, the financial expense ratio increased in '23, and the net interest rate fell below 30% for the first time in nearly ten years. However, looking ahead to 24, along with continued inventory removal and AI technology, the recovery of the consumer electronics industry is expected to accelerate, and orders for welding equipment are expected to pick up in 24; in addition, the company's SMT 3D AOI inspection equipment has completed serial development, forming a “perfect welding inspection” process level, and the 3C equipment business can be expected to grow.
The semiconductor business is flourishing and is expected to achieve a breakthrough in performance in 2024. In '23, the company launched a series of equipment such as silver sintering, formic acid/vacuum welding furnaces, IGBT multi-function soldering machines, and chip packaging AOI. It already has complete power semiconductor packaging solution capabilities including IGBT and SiC. Among them, self-developed micro-nano metal sintering equipment is a pioneer in domestic replacement. Currently, it has completed prototyping for dozens of silicon carbide packaging companies, some customers have already completed shipments, and it is expected that a breakthrough in performance will be achieved in 2024. The high-speed eutectic die bonder equipment has completed customer verification and entered the mass production stage. The successful development of a high-speed high-precision crystallizer has also laid a solid foundation for the company to lay out advanced packaging equipment.
Profit forecast: The company's profit for 2024 is basically in line with our previous profit forecast. We expect net profit of 2.89, 3.66, and 450 million yuan to mother for 24-26 (24-25 years ago: 2.87, 403 million yuan), PE 19, 15, and 12 times, maintaining a “buy” rating.
Risk warning: macroeconomic fluctuations, raw material price fluctuations, development risks of new products and new technologies