occurrences
The company released its 2023 annual report. According to the announcement, the company achieved revenue of 672 million yuan in 23, an increase of 5.06% over the previous year; realized net profit of 149 million yuan, an increase of 24.23% over the previous year; realized deducted non-net profit of 124 million yuan, an increase of 23.23% over the previous year; gross profit margin of 35.10%, and a net profit margin of 21.78%.
In the 24Q1 quarter, the company achieved revenue of 177 million yuan, a year-on-year increase of 30.10% and a decrease of 7.33%; achieved net profit of 41 million yuan, up 44.56% year-on-year and 2.50% month-on-month; realized net profit of 37 million yuan without return to mother in a single quarter, up 59.16% year-on-year and 12.12% month-on-month; gross profit margin of 35.58% and net profit margin of 21.85%.
Continue to expand the market and optimize the product structure to promote the company's profit growth. The company continues to increase market development, and the sales scale is growing rapidly. In 24Q1, benefiting from the increase in gross margin brought about by product structure optimization, the company's net profit to mother increased year-on-year. At the same time, the company's net profit to mother and net profit after deduction both achieved month-on-month growth, mainly due to the month-on-month decline in the company's management expenses and financial expenses.
Achieved full-generation coverage of G2.5-G11 in the field of display panels, and established long-term stable supply relationships with many well-known panel companies
In the field of flat panel display mask versions, the company can provide both traditional TFT LCD mask versions and high-end flat panel display mask versions such as LTPS LCD, AMOLED, and mini/micro-LED. The product line has achieved full-generation coverage of G2.5-G11, and has established long-term stable supply relationships with well-known panel companies such as BOE, TCL Huaxing, Tianma Microelectronics, and Xinli. Revenue is expected to grow as OLED penetration increases
Close cooperation with mainstream domestic manufacturers in the semiconductor field. The 130-28nm project is progressing smoothly. Semiconductor mask products are widely used in semiconductor manufacturing fields such as MOSFET, IGBT, MEMS, SAW, advanced packaging, etc., covering third-generation semiconductor-related products, and has established close cooperative relationships with many mainstream domestic manufacturers such as SMIC Integrated Circuit (Ningbo) Co., Ltd., Tongfu Microelectronics, Jingfang Technology, and Huatian Technology to jointly promote the development of the domestic semiconductor industry. Furthermore, the company invested in the semiconductor mask production line project of Jiangsu Luxin Semiconductor Technology Co., Ltd.'s 130-28nm process node through the industrial fund Luwei Shengde Infrastructure. The project is estimated to have a total investment of RMB 2 billion, effectively grasping industry development opportunities and helping improve the supply relationship in the domestic semiconductor industry chain.
Investment advice
We originally expected net profit to be 213 million yuan and 280 million yuan respectively from 2024 to 2025. We have now adjusted the profit forecast. We expect net profit to be 2.08/2.73 billion yuan from 2024 to 2026, respectively, corresponding to PE of 24.60/18.78/15.13 times, maintaining the “increase in holdings” rating.
Risk warning
Downstream demand recovery fell short of expectations, new product launch progress fell short of expectations, and market competition intensified.