The company released its third quarterly report for 2021.
Core point of view
Q3 continued to grow in a single quarter, returning to positive growth over the same period last year: the company's revenue in the first three quarters of 21 was 2.21 billion yuan, up 25% from the same period last year, and its net profit was 230 million yuan, down 23% from the same period last year. Among them, Q3's revenue in a single quarter was 1.02 billion yuan, a month-on-month increase of 60%, a net profit of 120 million yuan, a month-on-month increase of 39%, a slight increase of 1% over the same period last year, optimization of customer structure on the demand side and vigorous expansion of wearable, automotive electronics and other new products, new production capacity on the supply side opened and continued to climb, and the quarterly improvement trend has been established this year. Q3 shipments of the company increased steadily compared with the previous month, and new orders increased the proportion of self-purchased materials, so the gross profit margin decreased 4pct in a single quarter, but the increase in the value of a single machine promoted the rapid growth of revenue scale and highlighted the scale effect.
Q4 is expected to hit new highs: 1) New Glory market attention and share continue to increase, XIAOMI sales remain strong, H customers have a wide range of products, and the company's current orders fall short of demand; 2) as Q4 employees continue to expand and production capacity continues to break through, we believe that the company's monthly output is expected to break through the historical peak at the end of the year, promoting the company's Q4 performance to continue to improve, and resuming significant growth throughout the year.
Flow value and core competitiveness ensure long-term growth: 1) Fine production management, first-class quality control, dedicated strategy and rapid response ability build the company's core competitive advantage, giving full play to the value of flow and resources among customers. while maintaining the stickiness of important customers, we will continue to expand new products, new areas and new markets. 2) on the demand side, the rapid penetration of 5G mobile phones and the healthy customer structure have led to a steady increase in main business orders. at the same time, we have made great efforts to lay out automotive electronics, smart wear and other businesses, and have obtained the qualification of Valeo global suppliers. In the future, it will have greater order potential under the trend of 5G, automotive electronics, Internet of things and so on. 3) on the supply side, the capacity of the domestic intelligent production base is expanding rapidly, and the opening of the third phase of the project ensures room for capacity improvement in the next three years. at the same time, the layout and successive opening of overseas factories such as India, Vietnam and Bangladesh have also laid the foundation for global cooperation and long-term growth.
Financial Forecast and Investment suggestion
We forecast that the company will earn 0.55, 0.75 and 1.02 yuan per share in 21-23 years, respectively. According to the comparable company, we give the company a valuation of 28 times PE in 22 years, and the corresponding target price is 21.00 yuan, maintaining the buy rating.
Risk hint
Sales of major customers fell short of expectations; risks of changes in the international environment; and progress in overseas production capacity fell short of expectations.
