On August 30, the company released its report for the first half of 2024. 24H1 achieved revenue of 0.196 billion yuan, a year-on-year increase of 28.66%. Net profit to mother was -40.88 million yuan, and non-net profit deducted to mother was 18.96 million yuan.
Domestic business grew rapidly, and Q2 was profitable after excluding the impact of share payments. 24H1 seized the favorable opportunity for the development of China's EDA industry and further increased its revenue level from China. The main business revenue from China was 0.133 billion yuan, an increase of 43.99% over the previous year, accounting for 68.04% of the main business revenue. By product, 24H1's business revenue from EDA software licensing was 0.136 billion yuan, up 46.62% year on year. Among them, revenue from design EDA increased 90.51% year on year, and continued to maintain a relatively rapid growth trend. With rapid revenue growth, the profit side of the Q2 company also achieved good performance. After excluding the impact of share payments, compared to the first quarter, the company reduced losses and increased profits in the first half of the year, and achieved profit in a single quarter in the second quarter.
Efficient R&D investment, steady improvement in R&D strength. 24H1 invested a total of 0.131 billion yuan in R&D, an increase of 44 over the previous year.
09%, accounting for 66.74% of revenue, an increase of 7.15pcts year-on-year. The company's control personnel increased. On June 30, 2024, the total number of people in the company was 539, an increase of only 28 from 511 at the beginning of the year. However, the company's R&D personnel reached 381, an increase of 23 from 358 at the beginning of the period, and the proportion of R&D personnel also increased to 70.69%, an increase of 5.8 pcts over the previous year. Supported by continuous and efficient R&D investment, the companies' independent innovation achievements within 24H1 continue to flourish.
Go hand in hand, and all business segments develop collaboratively. The three major business segments of 24H1 have gone hand in hand, and each business line has achieved significant business progress. 1) EDA software licensing business: The company's next-generation high-capacity, high-performance parallel SPICE emulator, NanoSpice has passed the 3/4nm process technology certification from the Samsung foundry. In terms of product matrices, the company officially launched ESDI, a chip-level HBM (Human Body Model) electrostatic protection analysis platform, and PTM, a power device and power chip design analysis and verification tool, and has begun to be widely promoted in domestic and foreign markets. 2) Semiconductor device characteristic testing system: The company officially launched a high-precision source measurement unit (SMU) with independent intellectual property rights, which is internationally competitive; at the same time, the company also launched a new sensor microstructural parameter testing system FS-MEMS and ATS, a fully automatic electrical measurement solution developed based on self-developed hardware equipment and measurement and control software, which greatly accelerates semiconductor device and process development and chip design processes, and improves development and testing efficiency. 3) Technology development solution business: The company releases one-stop reliability solutions from test systems and EDA tools to technology development, which can be widely used in semiconductor process devices and chip design fields such as consumer electronics, automotive electronics, communications and aerospace.
Profit forecast and investment advice: We expect the company's 2024-2026 revenue to be 0.409/0.515/0.638 billion yuan, respectively, and net profit to mother of -0.057/-0.044/ -0.025 billion yuan, respectively, corresponding PS 14/11/9 times. Considering that the company has strengthened domestic market promotion over the past 23 years and achieved good results, and that it may achieve good breakthroughs in key customers and key products in 24 years, continue to lead the entire product line to comprehensively break through important customers, compounding the recovery in downstream semiconductor cycle prosperity, we maintain the company's “buy” rating.
Risk warning: risk of loss of technicians and rising technical personnel costs; risk of product development and technology upgrades falling short of expectations; competition risk due to relatively limited size and high concentration of the EDA market; risk caused by blocked investment, mergers and acquisitions or poor business coordination; risk of international trade friction, etc.