高速率产品收入占比提升、均单价/毛利提升。24H1 点对点光模块收入26.87亿元，同比+112.99%；销量327 万只，同比+12.37%；均单价821.62 元/只，同比+89.54%；毛利率43.36%，同比+13.53pcts。其中，销往境外的点对点光模块收入21.61 亿元，同比+95.88%；销量212.28 万只，同比+5.76%；均单价1017.92 元/只，同比+85.22%。公司高速率光模块、硅光模块、相干光模块、800G LPO 光模块等研发项目取得突破和进展，高速率光模块产品收入占比持续提升。Event: The company released its 24-year semi-annual report. 24H1: Revenue of 2.728 billion yuan, +109.07%; net profit to mother of 0.865 billion yuan, +200.02% YoY; deducted non-net profit of 0.865 billion yuan, +204.52% YoY.
24H1 gross profit margin 43.04% (YoY +13.63pcts), net profit margin to mother 31.72% (YoY +9.61pcts). Benefiting from the continuous rise in industry prosperity, demand for high-speed products is growing rapidly, and revenue and profits have increased dramatically. 24Q2: Revenue 1.615 billion yuan, +129.23% YoY, +45.11% month-on-month; net profit to mother 0.541 billion yuan, +199.45% YoY, +66.57% month-on-month; net non-net profit 0.54 billion yuan, +203.22% YoY, +66.29% month-on-month. 24Q2 gross profit margin 43.76% (YoY +18.29pcts, month-on-month +1.76pcts), net profit margin 33.48% (YoY +7.85pcts, month-on-month +4.31pcts).
Overseas, high-speed, and high-margin products account for a relatively high revenue share. 1) 24H1's 4.25G or higher optical module revenue was 2.612 billion yuan, accounting for 95.74%; gross profit margin was 43.24%. 2) 24H1 foreign revenue of 2.17 billion yuan, accounting for 79.56%; gross profit margin 44.22%. Domestic revenue of 0.558 billion yuan, accounting for 20.44%; gross profit margin 38.45%. 3) Sichuan Xinyisheng, a wholly-owned subsidiary of 24H1, has revenue of 3.166 billion yuan and net profit of 1.046 billion yuan. It is proposed to absorb and merge them, which is expected to optimize the structure, integrate resources, and improve efficiency.
High-rate products increased their share of revenue and increased average unit price/gross profit. 24H1 point-to-point module revenue was 2.687 billion yuan, +112.99%; sales volume was 3.27 million units, +12.37%; average unit price was 821.62 yuan/unit, +89.54%; gross profit margin was 43.36%, +13.53pcts year on year. Among them, the revenue of point-to-point optical modules sold overseas was 2.161 billion yuan, +95.88% year on year; sales volume was 2.1228 million units, +5.76% year over year; average unit price was 1017.92 yuan/unit, +85.22% year over year. The company has made breakthroughs and progress in R&D projects such as high-speed optical modules, silicon optical modules, coherent optical modules, and 800G LPO optical modules, and the revenue share of high-speed optical module products continues to increase.
R&D investment has increased, and the cost rate is stable. 24H1's R&D expenses were 0.13 billion yuan, +113.06% year-on-year, 4.75%, +0.09pcts; sales expenses ratio 1.45%, +0.14pcts; management expenses ratio 2.48%, -0.23pcts; financial expenses ratio -2.47%, year-on-year +4.77pcts.
24H1 operating cash flow -0.291 billion yuan, -160.24% year over year; inventory 2.236 billion yuan, +89.07% year over year.
Profit forecast. We believe that Xinyisheng, as a leading manufacturer of optical modules, has an advantage in the competitive landscape of the industry, and its business revenue is expected to grow steadily, which will further open up room for growth. We estimate that the company's revenue for 2024-2026 will be 7.062, 13.363, and 17.359 billion yuan, respectively; net profit to mother will be 2.221, 4.25, and 5.521 billion yuan, respectively, and EPS of 3.13, 6.00, and 7.79 yuan respectively. Referring to comparable company valuations, the company was given a 2024 dynamic PE range of 35-40X, corresponding to a reasonable value range of 109.55-125.20 yuan, which is “superior to the market” rating.
Risk warning. Market competition increases risks, technological upgrading and iterative risks, and macroeconomic risks.