3Q21's net profit increased by 65% compared with the same period last year, which is in the median forecast of 3Q21 revenue of 5.834 billion yuan (YoY 30%), net profit of 521 million yuan (YoY 65%), and non-home net profit of 492 million yuan (YoY 82%). The revenue of 3Q21 in a single quarter is 2.233 billion yuan (YoY41%,QoQ 6%), the net profit is 236 million yuan (YoY 160% 3Q21 30%), and the net profit of non-home QoQ is 2 million yuan (QoQ 141% QoQ 40%), which is in the median of the performance forecast (previously forecast 3Q21 is 205 million yuan ~ 285 million yuan in a single quarter). The company focuses on the main business, creating a "Liad" + "Jin Lixiang" dual-brand strategy, further sinking the channel market, and helping the company's profits to regain its growth trend.
The revenue of all sectors has grown better. The revenue of the smart display plate has exceeded that of the same period in 2019. The revenue of the smart display plate is 4.537 billion yuan, up 30% from the same period last year, and has exceeded the same period in 2019, with a gross profit margin of 29.29%. Although the price of upstream raw materials has increased a lot, but by reducing the cost and increasing efficiency and transmitting cost pressure to the downstream, the intelligent display business gross profit margin remains basically unchanged. The economic revenue of night tours was 700 million yuan, an increase of 28% over the same period last year, while that of new business type, a cultural travel service, was 369 million yuan, an increase of 41% over the same period last year. Revenue from the VR experience section was 222 million yuan, up 23%. Micro LED overseas market has begun to start, and orders are growing rapidly. During the reporting period, it is confirmed that the operating income is more than 200 million yuan, and it is expected to achieve the target at the beginning of the year.
The effect of the dual-brand strategy is outstanding, and the newly signed order in 2021 has exceeded 10 billion yuan. According to the three quarterly reports, with the improvement of the prosperity of the LED industry, the company's dual-brand strategy has shown its effect. The company's orders have grown steadily and rapidly since May, and the newly signed orders in 2021 have exceeded 10 billion yuan, close to the annual order target. As of October 24, newly signed orders in 2021 increased by 42% year-on-year and 14% over the same period in 2019. Among them, domestic smart display orders increased by 68% year-on-year, international smart display orders increased by 42% year-on-year, domestic channels have taken the lead in achieving the annual order target of 1.8 billion yuan, and NP orders increased by 84% year-on-year.
LED shows the leader, maintaining the "overweight" rating
The company's profitability gradually rebounded, and the performance in the third quarter was relatively good, raising the forecast return net profit for 2021-2023 to 7.65 million yuan (the original value was 896 pounds), corresponding to PE25/21/19 times, and maintaining the "overweight" rating.
Risk suggests that the impact of the epidemic leads to lower-than-expected downstream demand; the company's R & D progress is not as expected