Incidents:
Chipboard released its 2024 semi-annual report. 2024H1 achieved revenue of 0.45 billion yuan, a year-on-year increase of 41%, and realized net profit to mother of 0.1 billion yuan, an increase of 38.6% over the previous year.
Gross profit margin declined in appearance due to changes in accounting standards, and the net profit margin of 24% continued to be high
Looking at 2024Q2 in a single quarter, it continued to benefit from the recovery of the PCB industry and the shift of production lines to Southeast Asia. The company achieved revenue of 0.25 billion yuan, a year-on-year increase of 55%, and net profit of 0.06 billion yuan to mother, an increase of 56% over the previous year. The consolidated gross profit margin for a single quarter was 40.3%, -7.5 pcts year over year, and -3.5 pcts month-on-month, mainly affected by changes in accounting standards. Under the new accounting standards, the company's 2024H1 operating costs increased by 19.89 million yuan compared to the previous accounting standards, and sales expenses were reduced by 19.89 million yuan. If reverted to the original accounting standards, the gross profit margin for the single quarter was 48.2%, +0.3 pcts year over month, +4.4 pcts month over month, continued Stay steady and improve. In terms of profitability, the net interest rate for 2024Q2 was 24%, about the same as the previous year, and +4pcts compared to the previous month, and continued to maintain a high level of profit.
PCB: Benefiting from the transfer of production lines to Southeast Asia. Overseas market development has been affected by international trade frictions. Combined with support and cost advantages in Southeast Asia, there has been a remarkable trend in the transfer of PCB production lines to Southeast Asia in recent years. Leading domestic PCB manufacturers such as Pengding Holdings, Dongshan Precision, Shanghai Electric Power Co., Ltd., and Shenghong Technology are all planning to invest and build factories in Thailand, Vietnam and other places. Beginning in 2023, the company accelerated its overseas market strategy. The equipment was successfully sold to regions such as Thailand, Vietnam, Japan, South Korea and Australia, and export order performance was good. In the first half of this year, the company also completed registration for the establishment of a Thai subsidiary and actively built an overseas sales and operation and maintenance team. We expect that in the future, overseas markets such as Southeast Asia will become an important opportunity for the company's development, driving the PCB equipment business to continue to maintain steady growth.
Pan-semiconductors: Frontier applications in multi-point layout. IC carrier boards and advanced packaging are progressing smoothly based on the underlying technology of laser direct writing lithography. The company lays out multi-point IC carrier boards, mask versions, advanced packaging, new displays, etc., to accumulate long-term growth ceilings. Among them, in the field of IC carrier boards, it has now developed high-quality customers such as Xingsen Technology, Haoyuan Electronics, Mingyang Circuit, Baicheng Microelectronics, and Intronics. Technically, the MAS4 series has achieved a line width of 4 μm, reaching the level of first-class overseas competitors, and has been successfully verified on the client side. In terms of advanced packaging, the company's advanced packaging direct writing lithography equipment has obvious advantages in processes such as RDL, Bumping and TSV, and has cooperated with customers such as Shaoxing Changdian and Huatian Technology, and has received continuous repeated orders from leading advanced packaging customers in mainland China.
Investment advice:
We expect the company to achieve revenue of 1.18/1.56/2.03 billion yuan in 2024-2026, with a year-on-year increase of 42.0%/32.4%/30.1%; in 2024-2026, a net profit of 0.26/0.36/0.51 billion yuan, respectively, an increase of 44.4%/40.8%/41.0% year-on-year, corresponding to a price-earnings ratio of 27.8/19.8/14.0xPE in 2024-2026.
Considering the company's leading position in direct writing lithography equipment in China, the company was given a target price of 74.85 yuan for 6 months, corresponding to 38xPE in 2024, maintaining a “buy-A” rating.
Risk warning: The risk that the overseas market for PCB direct imaging equipment falls short of expectations, the risk that technology application/new product promotion in the pan-semiconductor field falls short of expectations, and the risk that profit predictions fall short of expectations.