Event: the company released the semi-annual report of 2023, the revenue in the first half of 2023 was 72 million yuan, the net profit of YoY+52.91%; was 19 million yuan, and the net profit of YoY+6.01%; was 17 million yuan. YoY+123.35%; was mainly due to a decrease of 9.29 million yuan in revenue-related government subsidies compared with the same period last year; gross profit margin decreased by 3.89 pct compared with the same period last year; the performance achieved rapid growth.
Comments: Q2 performance has increased significantly from the previous month, and the size of the R & D team has expanded steadily. The company's 2023Q2 realized revenue of 37 million yuan in a single quarter, YoY+84.37%,QoQ+5.50%; returned to its parent net profit of 11 million yuan, and YoY-1.50%,QoQ+28.4%; gross profit margin was 66.22%, down 8.48pct from the same period last year. On the expense side, the sales expenses of 23H1 Company was 12 million yuan, the main reason for YoY+80.56%, was the increase in personnel salary and advertising expenses; the management expenses was 16 million yuan, the main reason for YoY+96.29%, was the increase in staff compensation and listing intermediary service fees; and the R & D expenses was 28 million yuan, and YoY+43.38%, was mainly due to the increase in staff salary and depreciation amortization. The company continues to increase investment in phased array radar products, with a total of 110 R & D personnel by the end of June 2023, an increase of 25% over the same period last year.
The full polarization active phased array radar system solution is the leading manufacturer, the technology leading industrialization ability is strong. The company is a rare enterprise in China to master the key core technology of full-polarization active phased array radar and realize the industrialization of dual-polarization (dual-polarization) active phased array radar earlier. The main products are X-band dual-polarization active phased array radar and its supporting products. The company adheres to the technical route of dual-polarized microstrip array antenna, which has the advantages of small size, light weight and low cost. And the company has independent design and production capacity of core modules, components and components, and has outstanding advantages in low-cost industrialization. The company has established the first ultra-high spatio-temporal resolution X-band dual polarization active phased array radar weather observation network in Guangdong-Hong Kong-Macau Greater Bay Area and put it into application in Fujian, Shandong and other places, with a strong first-mover advantage.
X-band dual polarization phased array radar has become an effective supplement to the new generation of weather radar network, and the market application is accelerating. X-band dual polarization radar has the advantages of low cost, small antenna size, easy to manipulate and move, and high spatio-temporal resolution, which can provide more detailed information of cloud microphysics and dynamic structure and more precise observation data. According to the current delivery volume of the company and the bidding situation of local meteorological bureaus, it is expected that the permeability of X-band dual-polarization phased array radar will accelerate from 2023 to 2025. In addition, the application scenario under the low-cost and high-performance production mode is expected to accelerate the expansion, and the industry will move forward from multi-point blossom to full-scale explosion. Companies in many fields, such as water conservancy and flood control, civil aviation, marine monitoring, forest fire prevention, public safety and so on, are expected to form 0-1 breakthroughs and constantly broaden business boundaries.
Profit forecast and investment advice: the company has leading technology and high barriers in the field of dual-polarization active phased array radar, high technology premium and long-term sustainable growth potential. It is estimated that the company's operating income from 2023 to 2025 will be RMB 604 million, with a net profit of RMB 1.99 million and RMB 467 million, corresponding to RMB 3.02 per share of EPS 1.29max, maintaining a "buy" rating.
Risk tips: income recognition fluctuations, technology iteration and R & D risks, increased competition in the industry.