Event: Hua an Xinchuang released the third quarter report of 2022. In the first three quarters of 2022, the company achieved a total operating income of 631 million yuan (year-on-year + 5.73%) and a net profit of 40.0339 million yuan (year-on-year + 2.34%).
Among them, the operating income in the third quarter was 236 million yuan (year-on-year + 8.78%, month-on-month + 2.12%), and the net profit returned to the mother was 14.6684 million yuan (year-on-year-2.64%, month-on-month-26.24%). In the third quarter, the gross profit margin was 11.51% (3.59pct); the net profit rate was 6.06% (2.87pct); and the R & D expenditure rate was 3.94% (annulus + 0.95pct).
The performance is in line with expectations, and the revenue from software system development is confirmed to be seasonal, which affects the company's quarterly earnings:
The company's overall performance in the third quarter is in line with expectations. Among them, due to the seasonal recognition of the company's software development revenue with high gross margin, revenue recognition is usually carried out at the end of the year, which to some extent affects the decline of the company's gross profit margin in the third quarter. At the same time, since 2022, the company has accelerated its strategic transformation and increased investment in the production capacity and R & D personnel related to the Tier1 business of the vehicle screen display system, and the R & D expense rate has remained high. In the first three quarters, the company invested a total of 27.526 million yuan in R & D expenditure, an increase of 76.1% over the same period last year, affecting the company's profit release to a certain extent.
Backed by the two major screen factories of Beijing Oriental and Deep Tianma, Nantong factory officially laid the foundation and entered the period of accelerated growth in the past year, the company has successively set up joint ventures with Shenzhen Tianma and Jingdong Jingdian, deeply bound the two major domestic vehicle panel suppliers through the joint venture way of "one share participation, one holding", and continued to develop the Tier1 business of vehicle display by virtue of its low-cost and strong supply of screen resources. Under the premise of having upstream screen resources, the company has established a Tier1 factory in Nantong, Jiangsu Province through the 1.105 billion yuan raised by IPO.
According to the company's official account news, the factory has officially laid the foundation on October 22 for the construction of 1000 million LCD modules, 3 million sets of on-board display systems, 1 million sets of intelligent cockpit systems, 500000 sets of intelligent driving systems, and 2 million other automotive electronic products, totaling more than 50 production lines. With the gradual release of the company's future production capacity, the early high on-hand orders will gradually realize the performance and accelerate the growth.
Investment suggestion: we expect the company's return net profit from 2022 to 2024 to be 0.77,1.56 and 289 million yuan respectively, corresponding to the current market capitalization, PE is 46.2,22.7 and 12.2 times respectively, maintaining the "buy-A"
Rating, 6-month target price of 68.25 yuan per share.
Risk hint: the shortage of cores in the automobile industry is aggravating; the progress of capacity launch is not as expected.