Incident: The company announced 23 and 24Q1 results, with revenue of 854 million yuan, +3.0% year on year; net profit to mother of 235 million yuan, -15.6% year on year. 24Q1 revenue of 216 million yuan, +14.7% year on year; net profit to mother was 46 million yuan, -3.9% year on year; net profit after deducting non-net profit of 40 million yuan, +27.1% year on year.
The performance was in line with expectations. 23 years: 1) Vehicle: Revenue over 90 million yuan, 50% + year over year; 2) Healthcare:
Revenue of 63 million yuan, a year-on-year increase: 3) Microscope: revenue of 414 million yuan, +15.8% year over year, of which NEXCOPE high-end series revenue increased from 4 million yuan to nearly 140 million yuan in 2018; 4) Bar code machine vision: due to large customers leaving warehouses, year-on-year pressure. 24Q1 revenue reached a record high: microscopes were under year-on-year pressure due to last year's high base and delayed demand from colleges and universities; demand for barcodes recovered; and lidar/medical optics surged.
Structural changes affect gross profit margins, and R&D expenses are growing rapidly. 1) Gross profit margin: 23-year gross profit margin 38.41%, -3.68pct year-on-year. Among them, optical components and microscopes were 35.34% and 39.29%, -6.04 and -0.89pct year-on-year. The decline in gross margin of optical components is due to a decline in the share of bar code business and a rapid increase in the share of lidar; the decline in microscope gross margin is mainly due to the cost included in costs. 24Q1 gross profit margin of 37.71%, 2.2 pct month-on-month, mainly due to rapid growth in bar code business; 2) Period expenses: R&D/management/sales/finance expenses for 23 years were 0.92/0.43/0.44/ -024 million yuan, 15.6%/6.8%/20.5%/54.7% year-on-year.
Through the cycle, “forever” persevered to break through. 1) Microscope: full coverage of 800-1.5 million level confocal microscopes, equipment updates accelerate localization; 2) Barcode machine vision: rapid recovery of barcode scanning requirements, opening up space in batches for complex components and modules in the second half of the year; 3) Lidar: In-depth cooperation with Hesai, Valeo, Tudatong, Innoviz, Magna, Exploration, North Xing, etc., newly obtained standard Hesai LiDAR and Tudatong 905nm solutions; 4) Medical optics: core endoscope components and several domestic and European companies and heads Cooperate with well-known Japanese companies to develop 4K fluorescence modules for endoscopes; Surgical microscopes achieved mass sales overseas; established a Japanese joint venture, S-FIDA, to focus on high-end ophthalmic medical equipment; cooperated with a number of leading medical testing companies to provide core components; entered the emerging market of embedded microscopy systems to achieve mass production of embedded microsystems used in blood morphology analysis; and digital slice scanners quickly opened up the market.
Profit forecast: Net profit of 3.2, 4.6, and 630 million yuan is expected for 24-26, maintaining the “buy” rating.
Risk warning: Equipment updates have fallen short of expectations; lidar profit levels have not increased as much as expected, etc.