3Q22 performance is in line with our expectations
The company announced 3Q22 results: 1-3Q22 company income 4.602 billion yuan, year-on-year + 38.26%; return to the mother net profit 170 million yuan, year-on-year + 42.17%; deducting non-return net profit 150 million yuan, year-on-year + 58.29%. Corresponding to 3Q22, the company realized income of 1.981 billion yuan, year-on-year + 73.43%, net profit of 108 million yuan, year-on-year + 784.53%, and non-return net profit of 102 million yuan, + 1337.61%. The company's performance is in line with the previous performance forecast, but also in line with our expectations.
Trend of development
Stable overseas performance: 1) the company continues to develop overseas customers, actively obtains new orders for new models, and the main business maintains rapid growth, while 3Q22's accounts receivable and bills and contract liabilities are + 84% and + 106% respectively compared with the same period last year. 2) the shortage of raw materials and the shortage of shipping were alleviated compared with the same period last year, and the improvement of the company's delivery capacity also contributed to revenue growth. 3Q22 company inventory year-on-year, month-on-month respectively-17%,-21%, inventory digestion is good. 3) Amazon.Com Inc Prime Day will be held in July in 2022, and the time dislocation also has an impact on the increase of 3Q22 income.
Car fixed-point landing, VR steady development: 1) in terms of cars, the company announced that it has been designated by a domestic new energy vehicle manufacturer to supply a complete set of speakers and speakers for one of its models. The company expects to supply 8.5 million-10 million loudspeakers and speakers during its life cycle. According to the fixed project cycle, the company's automotive acoustics business profit is expected to be reflected in the second half of 2023. 2) in terms of VR, the sales income of 1-3Q22's VR/AR business is 162 million yuan, accounting for 3.51% of the operating income. The company's ability to cover acoustic modules, machine production, and actively expand high-end customers to achieve product share increase.
Financial analysis: 1) the exchange rate of 3Q22 US dollar against RMB rose by 6.18%, which had a positive impact on the company's exchange earnings. The exchange gain of 1H22 Company is 30 million yuan. The impact of 3Q22 exchange rate changes on cash and cash equivalents + 757% compared with the same period last year. 2) 3Q22's gross profit margin and homing net profit margin are + 1.8ppt and 4.4ppt to 12.0% and 5.4% respectively, mainly due to the decline in raw material prices and labor costs. 3) the gross sales difference of 3Q22 Company is from + 1.9ppt to 11.3% compared with the same period last year. The operating cash flow of 3Q22 Company has a net inflow of 98 million yuan, reversing the loss compared with the same period last year. The company actively takes measures to reduce costs and increase efficiency and improve operation and management.
Profit forecast and valuation
We maintain our profit forecasts for 2022 and 2023. Maintain an industry rating that outperforms. The current share price corresponds to 2022 / 2023 28 times / 23 times Phand E. Maintain the target price of 19.11 yuan, corresponding to 2022 / 2023 42max / 2023 42max / 2023, respectively, there is 50% room to rise from the current stock price.
Risk
New business development is less than expected risk, overseas demand fluctuation risk, exchange rate fluctuation risk.
