Incident: The company released its 2024 mid-year report. The first half of 2024 achieved revenue of 0.117 billion yuan, a year-on-year increase of 6.08%, and achieved net profit of 0.005 billion yuan to mother, -83.21% year-on-year.
Key points of investment
Business orders were executed in an orderly manner, and revenue grew steadily: the company's revenue for the first half of 2024 was 0.117 billion yuan, up 6.08% year on year, achieving net profit to mother 0.005 billion yuan, or -83.21% year on year.
Mainly, the company is steadily advancing its work in accordance with business goals, continuously expanding the market area, and implementing business orders in an orderly manner. At the same time, the company strengthens internal management, actively carries out technology research and development, steadily ensures product production and supply chain safety, completes delivery and acceptance of orders as planned, and achieves steady growth in revenue.
Among them, the company realized net profit attributable to owners of the parent company was 0.005 billion yuan, down 83.21% from the same period last year; net profit attributable to owners of the parent company after deducting non-recurring profit and loss was -0.0006 billion yuan, down 102.05% from the same period last year. Mainly because the company's R&D investment continued to grow in the first half of 2024, and R&D expenses increased significantly over the same period last year; at the same time, the company's sales expenses and management expenses also increased due to the expansion of business scale.
Core technology continues to be developed, and 0.126 billion yuan has been invested in RF microsystem R&D and industrialization projects: as of March 30, 2024, the company has invested 0.049 billion yuan, 0.028 billion yuan, and 0.097 billion yuan in RF microsystem R&D and industrialization projects, solid-state electronic switch R&D and industrialization projects, and programmable RF signal processing chip R&D and industrialization projects, respectively. Among them, the RF microsystem R&D and industrialization project plans to invest 0.126 billion yuan to focus on innovation in next-generation SIP component technology and 3D heterogeneous microsystem design technology. As key 3D heterogeneous microsystem technologies are becoming more mature, they will begin research and development of some 3D heterogeneous microsystem mass-production products, and at the same time develop more high-frequency, high-power, ultra-broadband shelf products. The construction of this project will transform the company's product form from complete customization to semi-shelf semi-customization, and maintain the advanced nature of the company's products at home and in the world.
The technical performance of the main products has reached advanced levels at home and abroad, and the first-mover advantage in the domestic market is obvious: the company is one of the few domestic enterprises that can provide overall solutions and technical services for products such as RF transceiver chips, high-speed and high-precision ADC/DACs, power management chips, microsystems and modules in special industries, and plays an important role in the leapfrog development of domestic equipment. As the core chip in the country's major equipment, the company's products have a high technical threshold. They have formed a strong first-mover advantage domestically, and the market advantage is obvious. It is expected that in the coming period, the company will maintain a favorable market position in related fields through continuous R&D investment and new product development.
Profit forecast and investment rating: The company's performance is under pressure. Considering the company's leading position in the field of simulated RF chips in special industries and changes in downstream demand for RF front-end products, we lowered the company's 2024-2026 net profit forecast value to 0.088/0.15/0.205 billion yuan, the previous value was 0.116/0.164/0.223 billion yuan, corresponding to PE 49/29/21 times, respectively, maintaining a “buy” rating.
Risk warning: 1) risk of loss of core competitiveness; 2) risk of operating scale still relatively small; 3) risk of fluctuations in performance; 4) risk of fluctuations in gross margin.