Incidents:
Chipboard released its 2024 mid-year report on August 22:2024H1 achieved operating income of 0.449 billion yuan, an increase of 41.04% year on year; realized net profit of 0.101 billion yuan, up 38.56% year on year; realized net profit deducted from non-mother 0.099 billion yuan, up 45.84% year on year.
Investment highlights:
2024Q2's performance was impressive. 2024Q2 achieved revenue of 0.251 billion yuan, up 55.37% year on year and 26.93% month on month; realized net profit of 0.061 billion yuan, up 55.58% year on year and 53.25% month on month; realized net profit without return to mother 0.062 billion yuan, up 58.62% year on year and 67.84% month on month.
The net interest rate is basically stable, and investment in R&D continues to increase. The gross margin of the 2024H1 company was 41.88%, a year-on-year decrease of 4.17pct. According to the “Compilation of Corporate Accounting Standards Application Guidelines 2024”, the company reclassified guaranteed warranty expenses originally included in sales expenses into operating costs, which had an impact on 2024H1 gross margin; the net margin was 22.40%, a year-on-year decrease of 0.41 pct. 2024Q2's gross margin was 40.32%, a year-on-year decrease of 7.54 pcts, and a month-on-month decrease of 3.54 pcts; the net margin was 24.24%, up 0.03 pcts year-on-year, and 4.16 pcts month-on-month. The company's expense ratio for the 2024H1 period was 17.01%, a year-on-year decrease of 4.93pct, of which sales expenses were 0.016 billion yuan, up 6.87% year on year; management expenses were 0.021 billion yuan, up 47.31% year on year; R&D expenses were 0.049 billion yuan, up 25.95% year on year; and financial expenses were -0.009 billion yuan.
Benefiting from industrial upgrade+overseas strategy, the main PCB industry has grown steadily. 1) In terms of equipment upgrades, benefiting from the continuous advancement of the AI wave, demand for large-size, high-frequency, high-speed, and high-heat dissipation PCB products continues to grow. The company is strengthening the product upgrade of PCB equipment in the two dimensions of R&D and production expansion, promoting a continuous increase in the market share of high-end PCB products such as multilayer boards, HDI boards, flexible boards, and IC carrier boards, and simultaneously increasing the expansion of NEX series direct writing lithography equipment in the high-end solder mask market. 2) In terms of going overseas, 2024H1 has increased its market layout in Southeast Asia. Currently, the Thai subsidiary has completed registration, overseas expansion is rapid, and export order performance is good.
Accelerate the pan-semiconductor layout, and future growth can be expected. 1) IC carrier board. The company's current carrier board device MAS4 with a resolution of 4 μm has been successfully verified on the client, and the fixed increase project supports the expansion of IC carrier board production capacity. 2) Advanced packaging. The company has a layout in the field of wafer-level and panel-level packaging equipment, and has advantages in rewiring, interconnection, intelligent correction, and large-scale chip packaging. 3) Lead frame. The company is actively promoting the etching process to replace traditional stamping processes, and has covered customers such as Leader Semiconductor and Longteng Electronics. 4) Mask plate making. The company's first mask plate making equipment that meets the 90nm node plate making requirements for mass production has been verified by the client.
5) With the new display, 2024H1 is actively entering BOE's supply chain. Currently, screen sensor RTR equipment has been shipped to BOE, and LCD process exposure coding mass production equipment will soon be shipped.
Profit forecast and investment rating We expect the company to achieve revenue of 1.182, 1.641, and 2.134 billion yuan in 2024-2026, and achieve net profit of 0.279, 0.393, and 0.517 billion yuan. The current price corresponds to PE at 26, 18, and 14 times, respectively. The company's PCB direct writing lithography equipment has a significant leading edge, accelerates the pan-semiconductor layout, and maintains a “buy” rating.
Risks suggest that downstream production expansion falls short of expectations; the penetration rate of new technology falls short of expectations; market competition increases risk; R&D and downstream development trends do not match; high customer concentration; and risks such as inventory impairment and accounts receivable.