The company's "1-4" strategy progressed smoothly, and the emerging business represented by the high-temperature gas sensor business in the first half of 23 years ushered in explosive growth; in the first half of the year, there were about 7 million new projects in the vehicle business, and car seat fan products were piloted in small quantities.

23Q2 single quarter deduction non-return growth of 21.1%

In the first half of 2023, Sifang Optoelectronics achieved business income of 288 million yuan, an increase of 14.1% over the same period last year, mainly due to the increase in market share in the fields of medical and health care and environmental monitoring, as well as vehicle sensors, high temperature gas sensors, ultrasonic gas meters and their modules. In the first half of 23, the company achieved a net profit of 72 million yuan, an increase of 1.3% over the same period last year. The net profit of deducting non-return was 70 million yuan, an increase of 3.7% over the same period last year. In the first half of 23, the company's return net profit growth was lower than revenue growth mainly because (1) the company continued to increase research and development of new products, and R & D expenses increased by 22.0% compared with the same period last year; (2) the company increased market development, and sales expenses increased by 39.4% year-on-year. (3) the company opened and put into production in Jiashan Park, labor and depreciation investment increased, and management expenses increased by 26.7% over the same period last year.

In the single quarter of 23Q2, the company achieved an operating income of 148 million yuan, an increase of 25.8% over the same period last year; a net profit of 33 million yuan, an increase of 18.7% over the same period last year; and a net profit of 32 million yuan, an increase of 21.1% over the same period last year.

Emerging businesses blossomed at multiple points, and the "1-4" strategy achieved remarkable results. Emerging businesses such as high-temperature gas sensors achieved explosive growth in the first half of the year.

In the first half of 23 years, the emerging business represented by high temperature gas sensor business developed well. We believe that this is the achievement of the company's long-term adherence to product research and development and active layout of sales channels around the "1-4" development strategy. Look at the specific split:

High temperature gas sensor: high temperature gas sensor business based on engine oxygen sensor sales revenue increased by 4770.89% in the first half of 23 compared with the same period last year.

Smart Metering Business: smart Metering Business based on Ultrasonic Gas Meter and its Modules sales revenue in the first half of 23 increased by 499.18% compared with the same period last year

Medical and health sensors: in the first half of 23, the sales revenue of medical and health sensors based on ultrasonic oxygen sensors increased by 270.77% compared with the same period last year.

Gas analysis instruments: double carbon, the gradual landing of the domestic substitution policy of scientific instruments and the upgrading and iteration of the company's gas analysis instrument business sales model and other factors jointly promote the company's gas analysis instrument business sales income to increase by 71.91% in the first half of 23 compared with the same period last year.

Safety monitoring business: in the first half of 23 years, the sales revenue of safety monitoring business mainly based on industrial safety and refrigerant leakage increased by 85.18% compared with the same period last year.

In the first half of the year, there were about 7 million new projects in the vehicle business, and the car seat fans received a small batch of pilot vehicle sensors as the company's key development business continued to develop in the first half of 23, with about 7 million new vehicle sensor projects. The company's on-board sensor business mainly includes automobile comfort system sensor, vehicle air improvement device, safety system sensor and high temperature gas sensor. In the first half of 23, the company stepped up the development of the car air improvement device market, launched car seat fan products and entered a small batch pilot stage.

Profit forecast and valuation

It is predicted that the return net profit of the company in 23-25 is 2.1,3.0 and 420 million yuan respectively, corresponding to 27,19,13 times of PE in 23-25, maintaining the "buy" rating.

Risk hint

The penetration of fresh air system is not as expected; the delivery of automobile fixed-point projects is not as expected; the development of emerging business is not as expected; the market demand for civil air quality sensors is not as expected.