Summary content
The results for the first half of the year were under slight pressure, and we are waiting for the performance to improve in the second half of the year. In the first half of the year, the company achieved operating income of 169 million yuan, a year-on-year decrease of 6.9%; the net profit returned to the mother was 36.41 million yuan, a year-on-year decrease of 32.8%; in the first half of the year, the company's gross profit margin and net interest rate were 42.8% and 21.6% respectively, down 0.9 pct and 6.33 pct respectively from 2021. On a quarterly basis, the company's operating income and net profit for the second quarter decreased 14.03% and 15.55%, respectively. The gross profit margin and net interest rate reached 43.50% and 21.85%, up 1.37 pct and 0.48 pct respectively from month to month.
The company's performance in the first half of the year was slightly pressured by the following factors: ① MEMS microelectronic component product revenue decreased year-on-year, mainly due to seasonal adjustments in major terminal product updates in the previous year, which led to a high performance base for the first half of 2022; ② Affected by epidemic control, the supply chain was poor for part of the first half of the year, and revenue confirmation of major products was affected to a certain extent; ③ The company increased R&D investment in R&D in the first half of the year, and R&D expenses increased 98.53% year-on-year. Looking ahead to the second half of the year, with the release of new consumer electronics products in the fall, the company's MEMS business is expected to resume growth, the impact of the epidemic will gradually ease, and the company is expected to resume rapid growth in the second half of the year.
R&D investment has been greatly increased, and technical reserves have been formed for new probe products. In the first half of the year, the company increased investment in R&D, focusing on projects such as core fine components, ultra-high frequency probe test components, substrate-level test probes, and some micro medical consumables in the AR/VR field. In the first half of the year, the company's MEMS process wafer test probes and substrate-level test probes formed part of the technical reserve, and some of these technologies and products have already submitted patent applications. The company has increased investment in research and development of new products, and new products such as MEMS probes and board level probes are steadily advancing, laying a solid foundation for the company's rapid growth in the medium to long term.
Investment advice: We expect the company's revenue for 2022/2023/2024 to be 552/764/1,048 million yuan respectively, and the net profit of the mother is 155/220/309 million yuan respectively. Considering the company's technical strength, outreach capabilities, and room for growth, we maintain a “buy” rating.
Risk warning: the risk of high customer concentration, the risk of changes in international trade policies, the risk of exchange rate fluctuations, the risk of new product development falling short of expectations, the risk of increased competition in the industry, etc.