下游需求逐步复苏，优化经营夯实基础。2024H 下游需求逐步复苏，助推公司实现营业收入76.79 亿元，同比+18.70%，实现归母净利润1.84 亿元，同比+8.44%；其中2024Q2公司实现营业收入41.22 亿元，同比+15.74%，环比+15.89%，收入逐步向上。值得重视的是，2024H 期末公司存货净值较期初减少1.22 亿元，其中LED 存货净值减少1.78 亿元，集成电路存货净值增加0.56 亿元，公司库存水位持续下降，存货结构持续改善。Description of the event
On August 27, San'an Optoelectronics announced the “2024 Semi-Annual Report of San'an Optoelectronics Co., Ltd.” In the first half of 2024, the company achieved operating income of 7.679 billion yuan, +18.70% year-on-year, and achieved net profit of 0.184 billion yuan to mother, or +8.44% year-on-year.
Incident comments
Downstream demand is gradually recovering, and the foundation for optimizing operations has been consolidated. The gradual recovery of downstream demand in 2024H helped the company achieve operating income of 7.679 billion yuan, +18.70% year over year, and achieved net profit of 0.184 billion yuan, +8.44% year over year; of these, 2024Q2 company achieved revenue of 4.122 billion yuan, +15.74% year over year, +15.89% month on month, and gradual increase in revenue. It is worth noting that at the end of the 2024H period, the company's net inventory value decreased by 0.122 billion yuan compared to the beginning of the period. Among them, the net inventory value of LED decreased by 0.178 billion yuan and the net inventory value of integrated circuits increased by 0.056 billion yuan. The company's inventory level continued to decline, and the inventory structure continued to improve.
The revenue and profitability of the LED main business both rebounded, and the high-end display business accelerated. 2024H's LED epitaxial chip main business revenue achieved +13.61% year over year, and business product restructuring continued to advance. Among them, traditional LED epitaxial chip products were +14.60% year over year, high-end LED epitaxial chip products were +10.48% year over year, and the gross margin of the LED business increased by nearly 5 pct year over year. In the high-end product segment, the company's Mini LED has been used in TVs, displays, laptops, vehicle displays, VR, etc., and sales volume continued to grow in the first half of the year; Micro LED technology has significant advantages and has cooperated with major domestic and foreign manufacturers; automotive LED technology has caught up with international first-tier standards and obtained stable orders from leading international and domestic car companies. Anrui Optoelectronics relied on Wuhu and Chongqing manufacturing bases to build an east-west supply chain cluster. 2024H completed the target for 10 projects. Mini-LED reached mass production on Changan models and achieved mass production. Bulk supply of models from brands such as Chery Smart World and Dongfeng Yipai.
An integrated circuit explosion is imminent, and the Star Sea Road is ahead. 2024H's integrated circuit business main business revenue was +16.85%. Among them: (1) RF front-end: benefiting from the recovery in terminal market demand and customer supply chain switching, the operating revenue of the gallium arsenide RF foundry and filter business increased significantly over the same period last year. Currently, the company's gallium arsenide and filter production capacity reached 0.015 million pieces/month and 150 KKK/month respectively. Among them, the company 2024H has launched satellite communication filters for Tiantong 1 and ECHOSTAR; (2) Power electronics: the company's holding subsidiary Hunan San'an has become domestic There are few vertically integrated manufacturing platforms in the silicon carbide industry chain. As of 2024H, it has a supporting production capacity of 16,000 silicon carbide pieces/month and a silicon-based gallium nitride production capacity of 2,000 pieces/month. Currently, 8-inch substrates have been tested in small batches and verified on clients. Some high-end silicon carbide diodes and MOSFETs for wafer products have been promoted at an accelerated pace in new energy vehicles, photovoltaics, charging piles, and industrial power supplies. The first phase production line of Suzhou Scott Semiconductor, a joint venture founded by Hunan San'an and Ideal Auto, has been completed. The full-bridge power module C sample has been delivered. It is expected that product verification will be completed in the second half of 2024, and mass module production is expected in 2025. An Yifa, a joint venture established by Hunan Sanan and STMicroelectronics in Chongqing, produces silicon carbide epitaxial and sells chips exclusively to ST. Its production equipment will be installed and commissioned one after another in the third quarter, and is expected to be connected in November. The joint venture plans to reach production capacity in 2028, with a production capacity of 0.48 million pieces/year after completion. Chongqing San'an, a wholly-owned subsidiary of Hunan San'an, will supply matching production of silicon carbide substrates to Anyi Law. It is expected that the Chongqing San'an Substrate Factory will be illuminated by the end of August.
We expect the company's revenue for 2023-2025 to be 17.658, 21.057, and 27.856 billion yuan, respectively, and net profit to mother of 1.055, 1.712, and 2.695 billion yuan, respectively. The corresponding PE is 46X, 28X, and 18X, giving it a “buy” rating.
Risk warning
1. Downstream demand for LEDs and semiconductors falls short of expectations;
2. Technical promotion and customer promotion of compound semiconductor products fell short of expectations.
