On August 29, 2023, the company disclosed its semi-annual report. In the first half of the year, it achieved revenue of 1,630 billion yuan, an increase of 13.98% over the previous year; it achieved net profit of 90 million yuan, an increase of 270.44% over the previous year.
Among them, Q2 achieved revenue of 747 million yuan, an increase of 14.75% over the previous year, and achieved net profit of 38 million yuan, an increase of 160.43% over the previous year.
Revenue grew steadily, and profits turned losses into profits. The company is deeply tied to North American A customers, benefited from the promotion of key projects, and achieved a certain breakthrough in sales in the 3C sector. Among them, the FATP section flexible module production line, MR equipment, etc. have been partially shipped and generated revenue. The company's profit ushered in a significant increase. Achieving the goal of turning losses into profits was mainly due to: 1) profits improved as the scale of revenue increased; 2) the company's refined production and fee control effects were remarkable; 3) some of the company's business was traded in US dollars, and exchange rate changes brought in exchange rate revenue of 24 million yuan.
Leading consumer electronics automation equipment companies, new energy equipment, semiconductor and robot businesses are expected to become the second and third growth curves of the company's development. The company entered the North American A customer supply chain system in 2010. Currently, it has become one of its important manufacturing equipment suppliers, and the consumer electronics market is stable. At the same time, the company has rapidly expanded its business to lithium battery equipment, power exchange equipment, and automobile parts with its rich accumulation of automation equipment. Furthermore, the company's semiconductor business and robot business became the third growth curve for the company's reserves.
Consumer electronics business: On the one hand, the FATP flexible production line with a high degree of automation is expected to drive production line upgrades and bring the company a driving force for continued performance growth. On the other hand, XR products are expected to continue to grow. According to IDC2023 forecast data, global VR shipments in 2024 reached 13 million units, +28.7% year on year; AR device shipments reached 970,000 units, +67.2% year on year.
New energy business: In terms of lithium battery equipment, the company's liquid injection machine and high-speed cutting all-in-one machine products have successfully entered the Ningde era, Honeycomb Energy and other customers. In terms of power exchange equipment, the company took the lead in arranging heavy truck chassis power exchange and was the core equipment supplier for the “Qi Ji” power exchange program. In terms of auto parts, the company's products have now become leading customers.
Other equipment: The company's AOI testing equipment and eutectic machines have been successfully developed, and small-batch orders have been formed. Semiconductor crystallizers are being actively developed. The subsidiary Suzhou Linghou lays out core components such as linear motors, light sources, and industrial robots to reduce production costs while making core technology autonomous and controllable.
The company is expected to achieve net profit of 441/472/526 million yuan respectively in 23-25, or +33.15%, 6.99%, and 11.43% year-on-year. The company's current price corresponds to the PE valuation value of 27.21, 25.43, and 22.82 times, maintaining the purchase rating.
The risk of lifting the ban on restricted shares, loss of majority shareholders' holdings, and high customer concentration.