What happened: the company recently released its third quarter report for 21 years. 21Q3 achieved revenue of 338 million yuan, yoy+36.41%,qoq+111%, realized net profit of 91 million yuan, yoy+52.74%,qoq135%, realized non-return net profit of 85 million yuan, yoy+47.53%,qoq+158%.
Comments: the performance is in line with expectations, with high growth in the traditional peak season. 21Q3 achieved revenue of 338 million yuan, yoy+36.41%,qoq+111%, realized net profit of 91 million yuan, yoy+52.74%,qoq+135%, realized non-return net profit of 85 million yuan, yoy+47.53%,qoq+158%. Affected by the Q3 consumer electronics traditional peak season + Apple Inc terminal stock increasing efforts, the company's performance shows a trend of rapid growth. The gross profit margin of 21Q3's product sales is 45.33%, yoy-2.54pct, qoq+5.28pct, and sales / management / R & D / financial expense rates are 1.9%, 3.4%, 4.2%, 0.2%, 0.7%, 0.5%, 1.0 pct, 0.9 pct, 29.82%, 3.58%, 4.69%, respectively. The improvement of overall operating efficiency leads to the improvement of profitability.
Continue to be optimistic about the high growth of the company's performance driven by high-quality customer resources + capacity expansion + product expansion + wearable and automotive electronic boom:
1) quality customer resources: the company's products have been successfully introduced into the global contract manufacturing leader Foxconn, showing an overall growth trend in Foxconn's sales revenue, with a leading ROE level in the industry and excellent profit quality. Relying on high-quality customers to open brand influence, product power + brand power to support the company's customer progress has achieved remarkable results, and the business scale continues to grow.
2) capacity expansion: the company's IPO project further expands the company's production capacity and improves product quality. On October 15, the new Baolong factory was officially put into production, the capacity release and supply capacity was enhanced and the customer expansion was superimposed, and the company's long-term performance growth was flexible.
3) Product expansion: products have expanded from smart phones, automotive electronics, smart wearable and other products to smart security, smart home, electronic atomizer products and other areas. 4) wearable devices + automotive electronic boom upward: Android TWS+ smartwatches drive the continuous expansion of the wearable market. The electric transformation of the automobile, the improvement of ADAS and the permeability of the intelligent cockpit lead to the deepening of the electronic degree of the automobile and the increase of the bicycle value of functional devices.
Investment advice: the net profit of 21max in 22 years is estimated to be 249max 346 million yuan, corresponding to 2618max PE in 22nd year, maintaining the "buy" rating.
Risk tips: downstream demand is lower than expected, customer expansion is not as expected, capacity release is not as expected, market competition aggravates the loss of corporate share and profitability.