On August 30, 2022, the company released its 2022 semi-annual performance report. During this reporting period, the company achieved operating income of 1.006 billion yuan, a year-on-year increase of 4.66%; the net profit attributable to shareholders of the listed company was 42.9249 million yuan, a year-on-year decrease of 38.77%; the net cash flow generated from operating activities was 522 million yuan, a year-on-year increase of 61.69%. In view of the downturn in the LED chip industry since 2022, the company's profit side has declined significantly, but the revenue side still shows strong resilience. Compared with the LED epitaxial chip revenue of comparable companies in the same industry, Sanan Optoelectronics (-11.53%), Huacan Optoelectronics (-27.32%), Qianzhao Optoelectronics (-14.87%), the company's LED epitaxial chip revenue only fell slightly by 0.62% in the first half of the year.
Timely optimize equity incentive rules to protect the interests of the company's core backbone. Since 2022, the domestic macroeconomic situation has undergone profound changes, coupled with the impact of adverse factors such as the recurrence of the new crown epidemic and the continued conflict between Russia and Ukraine, the LED chip industry has experienced a relatively obvious decline in prosperity. Under the current background, the company pays more attention to the stability of its talent team, and promptly adjusts and refines the equity incentive rules to protect the interests of the company's core employees and accumulate important strength for the company when new technologies such as Mini/Micro Led explode in the future.
Twice increased investment in Mini/Micro LED, revealing the company’s strategic layout opportunities. On September 14, 2022, the company completed the inquiry letter feedback from the Shenzhen Stock Exchange on the issuance of stocks to specific objects, and the private placement project matter took another step forward. Mini/Micro LED has always been an important technical reserve of the company. In May 2021, the company successfully issued shares to specific targets and raised 702 million yuan.
The funds raised are mainly used to develop and manufacture high-end LED chip products including Mini/Micro LED, automotive lighting, high-power LED, etc., and plan to add 9.5 million blue-green LED chips/year production capacity, including 8.28 million blue-green LED chips/year and 1.2 million Mini LED chips/year. This time, the company has invested another 1.2 billion yuan and plans to build an expansion project for research and development and manufacturing of Mini and Micro LED chips with an annual output of 7.2 million pieces. It not only shows the company's leading strategic layout, but also reflects the company's emphasis on Mini/Micro LED. As Mini LED takes the lead in commercial mass production, the company is expected to fully enjoy the "dividends" brought by industrial development.
Company profit forecast and valuation: The company is expected to achieve operating income of 2.25/24.7/2.64 billion yuan in 2022/2023/2024 respectively, a year-on-year increase of 11.8%/10.0%/7.0%; net profit attributable to the parent company is expected to be divided into They are 144/154/165 million yuan respectively, with year-on-year growth of -18.5%/6.4%/7.1%. The corresponding PEs in 2022/2023/2024 are 39.5/37.1/34.6 respectively, giving an "overweight" rating.
ANNA