China Securities Journal and cs.com.cn | Thirty-one Companies on the STAR Market Expect Positive Performance in 2023, with Skyverse's "U" to Be Removed

Translated from China Securities Journal and cs.com.cn

As of January 17, 2024, a total of 35 companies on the STAR Market have released their expected performance for 2023. Among them, 28 companies disclosed their performance forecasts, 3 companies disclosed their preliminary earnings estimates, and 4 companies disclosed their performance in their listed company statements.

In terms of the changing trend, 31 companies are expected to achieve positive performance. Skyverse Technology Co., Ltd. (Skyverse), Wuxi Hyatech Co., Ltd. (Hyatech), and SWS Hemodialysis Care Co., Ltd. (SWS) are expecting net profit growth rates of over 861%, 346%, and 170%, respectively. In terms of net profit amount, 27 companies realized net profits of over RMB 100 million, with Shenzhen Transsion Holdings Co., Ltd. (STH), Advanced Micro-Fabrication Equipment Inc. China (AMFE), and Beijing Kingsoft Office Software, Inc. (Kingsoft Office) at the top. In addition, Skyverse is expected to achieve a positive net profit before and after deducting non-recurring gains and losses for the first time. It is expected to successfully remove the "U" in its stock abbreviations after the annual report is disclosed.

Nearly 90% of companies expecting positive performance

In terms of net profit growth rate, 31 companies are expected to achieve positive performance, including 30 companies with profit growth and 1 company turning losses into gains, accounting for 88.6%. Among them, 6 companies are expected to achieve a year-on-year net profit growth of over 100%, with the highest increase being more than 10 times. As of now, Skyverse ranks first in terms of growth rate, followed closely by Hyatech and SWS.

Skyverse sees an improvement in profitability with its increased business scope. It will realize a turnaround from loss to profit for the first time after deducting non-recurring gains and losses. It is expected to remove the "U" in its stock code after the annual report is disclosed. It is expected to achieve a net profit attributable to the parent company of RMB 115 million to RMB 165 million in 2023, a year-on-year increase of 861% to 1,278%. The net profit attributable to the parent company after deducting non-recurring gains and losses is expected to be RMB 25 million to RMB 45 million, a year-on-year increase of RMB 113 million to RMB 133 million. This is attributed to the rapid development of the domestic semiconductor testing and measurement equipment market, and the growth of market demand of downstream customers that need equipment localization urgently.

Hyatech is expected to realize a net profit attributable to the parent company of RMB 89.5 million to RMB 94.5 million in 2023, a year-on-year increase of 346% to 371%. It is expected to realize net profit attributable to the parent company of RMB 82.5 million to RMB 87.5 million in 2023 after deducting non-recurring gains and losses, a year-on-year increase of 443% to 476%. This is attributed to the steady growth of the total production volume of the company's international and domestic aviation business, the continuously adjusted market structure, and the continuously optimized product structure, which improves the scale effect of batch production.

Nearly 80% of companies seeing net profit exceeding RMB 100 million

In terms of net profit size, 21 companies are expected to realize an average net profit of over 100 RMB million, with 6 of them exceeding RMB 1 billion. STH, AMFE, and Kingsoft Office have the highest net profit amounts, with the minimum net profit amounts expected to be RMB 5.493 billion, RMB 1.7 billion, and RMB 1.235 billion, respectively.

Currently, STH has the highest profit on the STAR Market. The Company is expected to realize operating revenue of approximately RMB 62.122 billion in 2023, a year-on-year increase of about 33.32%. It is expected to achieve a net profit attributable to the parent company of approximately RMB 5.493 billion in 2023, a year-on-year increase of about 121.15%. According to the announcement, the main reasons for the performance change include the Company continuously expanding new emerging markets and promoting the upgrade of products, resulting in the growth of overall sales and sales revenue. Meanwhile, benefiting from product structure upgrades and cost optimization, the Company saw an increase in overall gross profit rate and gross profit.

Kingsoft Office is expected to achieve an operating income of RMB 4.369 billion to RMB 4.795 billion in 2023, a year-on-year increase of 12.45% to 23.41%. It is expected to achieve a net profit attributable to the parent company of RMB 1.235 billion to RMB 1.366 billion in 2023, a year-on-year increase of 10.55% to 22.19%. During the reporting period, the Company saw revenue growth in both institutional and individual subscription business, which offset the impact of adjustments in institutional authorization business and Internet advertising business, contributing to the Company's continuous growth of overall performance. Meanwhile, the Company saw continuous growth in overall revenue from government and enterprise business.

Eight companies in the integrated circuit industry chain expecting positive performance

Currently, 8 companies engaged in integrated circuits, including Skyverse, Shenzhen Bluetrum Technology Co., Ltd., Hygon Information Technology Co., Ltd. (Hygon), AMFE, Jiangsu Aisen Semiconductor Material Co., Ltd., Beijing Jingyi Automation Equipment Co., Ltd, Espressif Systems (Shanghai) Co., Ltd., and Vanchip (Tianjin) Technology Co., Ltd. have disclosed their expected performance for 2023, all of which are expected to achieve growth in both operating revenue and net profit compared to the previous year.

AMFE is expected to achieve operating revenue of approximately RMB 6.26 billion in 2023, a year-on-year increase of approximately 32.1%. It is expected to achieve a net profit attributable to the parent company of RMB 1.7 billion to RMB 1.85 billion in 2023, a year-on-year increase of approximately 45.32% to 58.15%. The Company saw a newly added order amount of approximately RMB 8.36 billion in 2023, with an increase of approximately RMB 2.04 billion from the newly added order amount of RMB 6.32 billion in 2022, a year-on-year increase of approximately 32.3%. Moreover, the Company has achieved remarkable results in R&D of new products, with four new LPCVD and ALD equipment products entering the market in the past two years. The Company has put into use its production and R&D base in Nanchang, covering approximately 140,000 square meters, and part of its production facilities in the production and R&D base in Shanghai Lin-gang Special Area, covering approximately 180,000 square meters, which supported the rapid growth of its sales.

Hygon is expected to achieve operating revenue of RMB 5.68 billion to RMB 6.26 billion in 2023, a year-on-year increase of 10.82% to 22.14%. It is expected to achieve a net profit attributable to the parent company of RMB 1.18 billion to RMB 1.32 billion in 2023, a year-on-year increase of 46.85% to 64.27%. Hygon stated that during the reporting period, the Company has always focused on the general-purpose computation market, maintained a high R&D investment, continuously enhanced its product competitiveness through technological innovation, product iteration, and performance improvement, and achieved continuous growth in revenue and gross profit rate. This further solidified the Company's leading advantage and market competitiveness while helping the Company realize continuous performance growth.