Incident Overview
The company released its 2024 mid-year report.
The Q2 panel showed a significant increase in revenue. 24H1 achieved a high increase in semiconductor equipment revenue of 1.121 billion yuan, +0.96% year over year, of which Q2 was 0.703 billion yuan, +38.14% year over year, with a significant improvement in the single quarter. By product: 1) Shows: 24H1 achieved revenue of 0.776 billion yuan, +5.35%, with stable performance, of which Q2 achieved revenue of 0.507 billion yuan, +50.28% year over year, significant improvement; 2) Semiconductors: 24H1 achieved revenue of 0.228 billion yuan, +86.17% YoY, maintaining a relatively rapid growth trend, mainly due to rapid delivery confirmation of related orders; 3) New Energy: 24H1 achieved revenue of 0.094 billion yuan, YoY- 59.83%, mainly due to increased market competition, the technical process of power lithium battery equipment is still in the run-in period, and the overall pace of customer acceptance is slowing down. As of the disclosure date of this report, the company has obtained a total order amount of about 3.441 billion yuan, which shows that on-hand orders in the semiconductor sector are about 1.038 billion yuan, in-hand orders in the semiconductor sector are about 1.767 billion yuan, and on-hand orders in the new energy sector are about 0.637 billion yuan. Sufficient orders are expected to support steady growth on the company's revenue side.
It was confirmed that the pace affected semiconductor gross profit margin. 24H1's profit level improved 24H1 net profit and net profit of 0.50 million yuan and -0.03 billion yuan, respectively, compared with +312.00% and +93.31%, respectively, in line with previous performance forecasts. Among them, Q2 net profit to mother and net profit without return to mother were 0.66 million yuan and 121 million yuan, respectively, +30024.15% and +145.28% year-on-year. The 24H1 net sales margin and net profit margin after deducting non-sales were 3.94% and -0.27%, respectively, compared with +4.61 and +3.8pct, which increased the profit level. 1) Margin side: 24H1 sales gross margin was 43.09%, -0.67pct, showing that semiconductor/new energy gross margin was 44.28%/42.41%/32.23%, respectively, -3.56/-6.91/+4.82pct. Among them, semiconductor gross margin declined significantly. We speculate that mainly confirmed products with relatively mature low-level processes. 24H2 With the confirmation of advanced process equipment, semiconductor gross margin is expected to gradually improve. 2) Expense side: The cost rate for the 24H1 period was 50.49%, +0.56pct year on year. Among them, sales, management, R&D, and financial expense ratios were -1.20, +0.70, and +0.87pct, respectively. The overall performance on the cost side was stable. 3) The 24H1 government subsidy of 0.118 billion yuan included in non-recurring profit and loss, which significantly increased profit-side performance.
Measuring/testing equipment is the most flexible segmented circuit. Judging from industry logic, the company's semiconductor equipment fully benefits from import substitution. Judging from industry logic, the semiconductor measurement equipment market is large, the localization rate is low, and the profit level is excellent. It is one of the most flexible segments. At present, the company's core products have covered 1xnm and above. Film thickness products, OCD equipment, and electron beam defect review equipment have obtained repeated orders for advanced processes; semiconductor silicon stress measurement equipment has been verified and has obtained repeated orders from many leading domestic customers. Brightfield optical defect detection equipment has completed delivery and acceptance of the first set, and has obtained official orders for advanced processes; other products with reserves such as graphic dark field defect detection equipment are currently being developed. On July 9, 2024, it was revealed on the Jingxing public account that it plans to introduce a large number of the company's 20 EPROFILE 300FD measuring machines in the third phase of Jinghe and subsequent additional production capacity, and to cooperate in the fields of scanning electron microscopes, brightfield defect detectors, WAT testers, yield testers, etc., which sent a positive signal. The company's domestic replacement logic for measurement equipment continues to be implemented, and we are optimistic about the release of subsequent orders.
Investment advice
We maintained the company's 2024-2026 revenue forecasts of 29.85, 38.30, and 4.804 billion yuan, respectively, and +23%, +28%, and slightly raised 2024-2026 net profit to mother of 2.61, 4.48, and 743 million yuan, respectively (the original values were 2.61, 4.43, and 739 million yuan), +74%, and +66% year-on-year, and slightly raised the 2024-2026 EPS to 0.96, 1.64, and 2.72 yuan, respectively (the original value was 0.94, 1.59, and 2.66 yuan), and the stock price of 54.68 yuan on 2024/8/28 corresponds to PE of 57, 33, and 20 times, maintaining an “gain” rating.
Risk warning
The display panel industry is declining, semiconductor business expansion falls short of expectations, etc.