1H24's profitability continues to improve, and the semiconductor+flat panel display+new energy platform-based layout continues to accurately measure the performance forecast. It is expected to achieve net profit of 45 million yuan to 55 million yuan in the first half of 2024, an increase of 272.09% to 354.77%; government subsidy revenue for the first half of the year is about 52 million yuan, net profit after deducting non-recurring profit and loss - 7 million yuan to 3 million yuan, an increase of 84.50% to 106.64% year on year. The industry recovery situation in the display sector continues to improve. As some of the company's products in the semiconductor field enter the mass production stage, revenue recognition increased sharply year on year. As of the first quarter report, the company has orders of 3.536 billion yuan. We are optimistic that the company will continue to release semiconductors and gradually repair and improve its display business. We expect 2024-2026 revenue of 2.85/3.56/4.36 billion yuan to maintain “purchases”, which is 10.6 times the company's PS in 24. Considering that the company's revenue is still dominated by panels, with a certain discount. Target price is 102.02 yuan (9.79x PS for 24 years).
2Q: Shows that the business is gradually being repaired, and the semiconductor business supports growth. Q2 achieved a net profit of 60.93-70.93 million yuan, yoy +27810% -+32391%, after deducting non-net profit of 16.72-26.72 million yuan, which significantly reversed losses over the previous year. The company's fundamentals are improving quarter by quarter, and the industry's recovery situation in the field continues to improve. Furthermore, the company is vigorously promoting the expansion of new businesses related to OLED and micro-OLED, while continuously improving product delivery capabilities, and the pace of revenue recognition has further accelerated. Furthermore, as some of the company's products in the semiconductor field enter the mass production stage, revenue recognition has increased dramatically over the same period last year. As of the first quarter report, the company has obtained a total order amount of about 3.536 billion yuan, including about 1.248 billion yuan for on-hand orders in the field, 1.602 billion yuan for orders in the semiconductor sector, and 0.686 billion yuan for on-hand orders in the new energy sector.
Outlook: Layout semiconductor+flat panel display+new energy, continuous innovation to ensure long-term growth outlook 1) Semiconductors: The company's core products have covered 1xnm and above, film thickness, OCD equipment and electron beam defect review equipment have obtained repetitive orders for advanced processes. The company is optimistic that the company will continue to release semiconductor orders through capital increase in Hubei Jiangcheng Laboratory; 2) Display business: The company's AR/VR/MR equipment supporting testing has made breakthrough progress; the field of micro-OLED testing has entered micro- In the OLEDCell segment, we have also reached cooperation with top global customers on the micro-OLED module inspection side and have completed partial deliveries; the AR field has reached customized development cooperation for core optical instruments with leading customers, and has achieved breakthroughs in supporting inspection requirements such as optical modules and Eyepiece; 3) The company continues to increase customer cooperation at home and abroad in the field of new energy equipment to increase market penetration.
Valuation: Maintaining a “buy” rating, target price of 102.02 yuan
We are optimistic that the company will move from panels to the rapidly developing semiconductor and new energy sector. Considering sufficient orders for semiconductors and new energy sources, maintaining the company's 2024-2026 revenue forecast of 2.85/3.56/4.36 billion yuan, maintaining a “buy” rating, which is 10.6 times the company's PS in 24 years, considering that the company's revenue is still dominated by panels, giving a certain discount. Based on 9.79 times PS in 24 years, the target price is 102.02 yuan based on the latest share capital.
Risk warning: In the global semiconductor downturn cycle, demand for semiconductor equipment falls short of expectations, and industry competition intensifies.