Event: the company's 22H1 achieved revenue of 2.707 billion,-16.63% compared with the same period last year, with a net profit of 36.18 million yuan, + 16.05% compared with the same period last year. Of which Q2 achieved revenue of 1.501 billion yuan, year-on-year-11.26%, month-on-month + 24.50%; net profit of 7.36 million yuan, + 241% compared with the same period last year, the performance was in line with expectations.
Profitability has rebounded, and exchange rate fluctuations affect net interest rates. 22H1's distribution business is in a period of product strategy adjustment, reducing the investment of resources in the field of consumer electronics, and continuing to expand the high-growth automotive product market. 22H1 affected by inflation, epidemic and other shocks led to a year-on-year decline in revenue in the distribution sector. Thanks to the accelerated improvement of the electronic degree of cars, the company's distribution business in the auto market has grown significantly against the trend in 22H1. Due to the initial results of the company's product line and customer optimization, 22H1 distribution gross profit margin is 9.77%, year-on-year + 0.49pct. The rapid appreciation of Q2 US dollar against RMB results in an exchange loss of 22.03 million yuan for H1 Company, which has a great impact on the company's performance.
Yingtang Aurora Mobile Limited proposed to set up, MEMS micro-vibrator opened to send samples, continue to promote the semiconductor IDM transformation. The company announced that it plans to set up a wholly-owned subsidiary, Yingtang Aurora Mobile Limited, to be responsible for implementing the research and development and industrialization project of MEMS micro-galvanometer, which is conducive to the absorption and localization of MEMS micro-mirror derived from Yingtang micro technology. In July 2022, the second generation of MEMS microscopes of in-car LiDAR opened sample delivery, entered the customer trial stage, and is expected to be put into practical use in level 4 self-driving vehicles, indicating a new milestone in the company's strategic transformation to upstream semiconductors. MEMS microvibrator is mainly used in semi-solid lidar and is the most suitable technical route for landing at present.
The lidar market is expected to reach $13.5 billion in 25 years and 64.5 per cent CAGR in 19-25. The company through the acquisition of deep technology accumulation of vehicle chips, power chips and other high-growth track leading companies, to open customers, production capacity and other blockages to accelerate the development of the acquired chip companies. In the future, the company is expected to become a semiconductor IDM manufacturer with rich customer resources and keen market awareness of distribution enterprises, as well as R & D and production of key components.
Investment suggestion: from 2022 to 2024, we expect the company to achieve an income of 7380cm 80.8875 million, a net profit of 2.01pm 281pm, and a market capitalization corresponding to PE on August 26th, which is times higher than that of 38-27-20, and maintains a "buy" rating.
Risk tips: downstream demand is not as expected, customer development is not as expected, and project construction is not as expected.