Event: the company released its three-quarter report in 2021. In the first three quarters, the company realized operating income of 16.448 billion yuan, an increase of 43.12% over the same period last year, and a net profit of 709 million yuan, an increase of 53.58% over the same period last year. In the third quarter, the company achieved revenue of 6.461 billion yuan, an increase of 30.03% over the same period last year. The net profit was 276 million yuan, up 53.34% from the same period last year, continuing the high growth trend.
The innovation business of Electronic Network Group is accelerated again, and the advantage of business model is strengthened. Huaqiang Electronic Network Group's revenue in the third quarter increased by more than 450% compared with the same period last year, and its net profit increased by more than 320% compared with the same period last year. As the information connectors of supply and demand of electronic components, Electronic Network Group has strengthened the penetration and extension of upstream and downstream after one year of integration, and gradually gained a firm foothold in the ever-changing industrial environment to verify the feasibility, scientific and growth of its business model. At the same time, the gross profit margin of the electronic network innovation business remains at a relatively high level of more than 20%, which also promotes the growth of the company's profit side over the revenue side.
The Matthew effect continues to work, with strong growth in the distribution business. Driven by external industry trends, as well as the continuous improvement of its own R & D and technical services, as the leader of local distributors, the company fully seizes the market opportunity, gives full play to its comprehensive advantages, and continues to increase its market share. The distribution business maintained a high growth trend in the third quarter. At the same time, the distribution business structure is also constantly optimized, the expansion of high-margin business scale, promoting the overall profitability of the company, the third quarter gross profit margin of 11.42%, remained at an all-time high, up 2.51 pct year-on-year. In addition, the company's ending inventory balance continues to rise, the active inventory scale expands, while inventory turnover increases 0.49 times compared with the same period last year, accounts receivable turnover increases 0.72 times year-on-year, and operating efficiency continues to improve with the strengthening of the company's industrial dominance.
Investment advice: according to the three quarterly reports, we adjust the company's profit forecast. It is estimated that the company's main business income from 2021 to 2023 is 216.15 yuan, 267.31 yuan and 30.864 billion yuan, and the parent net profit is 9.89,11.15 and 1.333 billion yuan, corresponding to 16, 14 and 12x PE, maintaining the company's "buy" rating.
Risk tips: the demand of the electronic components industry is lower than expected; the Internet business development of the electronic components industry is not as expected and the risk of IPO listing failure.
