3Q22 revenue rose 14.6 per cent year-on-year, while net profit from home increased 9.3 per cent. At the beginning of 2022, the company completed the 100% equity acquisition of Ruidian Precision to expand the precision plastics business; based on the retroactive adjustment, 1-3Q22 has a revenue of 1.969 billion yuan (YoY + 7.8%), a net profit of 151 million yuan (YoY + 11.2%), and a net profit of 132 million yuan (YoY + 22.4%). Of which 3Q22 revenue is 968 million yuan (YoY+14.6%), net profit is 122 million yuan (YoY+ 9.3%), net profit after deducting non-return is 118 million yuan (YoY+ 15.5%), 3Q22 gross profit is 30.36% (YoY- 0.59pct), net profit is 12.65% (YoY-0.61pct). Affected by the epidemic in the Yangtze River Delta in the first half of the year, the company's performance was under periodic pressure; with the release of new phones by Samsung, Apple Inc and XIAOMI, the company's capacity utilization reached its peak and performance returned to growth.
Samsung, Apple Inc, XIAOMI released new products in the third quarter, MIM, transmission business fully benefited. The main customers of the company's MIM plate are Apple Inc and Samsung, among which Apple Inc released a series of new iPhone14 phones in September, and the preparation rhythm returned to the normal state before the epidemic. Samsung released a new Galaxy Z Fold 4/Flip 4 folding screen machine in August, and the new product releases of Apple Inc and Samsung led the company's MIM business capacity utilization to a peak.
The company's transmission plate 3Q22 has realized the mass production and delivery of XIAOMI's new folding screen machine Mix Fold 2 hinge module, which not only provides incremental performance, but also shows the company's unique advantages in the production of hinge modules under the cooperation of MIM+ transmission business, which lays a solid foundation for the subsequent introduction of hinge module supply from other folding machine customers.
Subsidiary Ruidian Precision performed well, and Antexin 3Q22 turned losses into profits. Under the repeated influence of the domestic epidemic situation, the sales of injection plastic parts of Ruidian precision COVID-19 testing kit have increased, while Ruidian precision has actively developed and introduced plastic parts projects related to new energy vehicles, which is expected to achieve the 23-year net profit of 2100,000,000 yuan. Since the merger in March 21, 3Q22 has experienced problems such as overstaffing, sluggish materials and lack of production management capacity, and failed to achieve its performance commitment target in the past 21 years. With the optimization of procurement and production management, Antwin has achieved a turnaround and is expected to improve gradually in the future.
Investment suggestion: we are optimistic about the growth flexibility of the company's performance under the background of rapid penetration of folding screen phones. it is estimated that the company's revenue in 22-24 will increase by 26.7%, 25.3%, to 30.45, 174.705 million yuan, and its net profit is expected to increase by 53.5%, 33.0%, 25.0%, to 2.82, 35.0, 33.0, and 469 million yuan, respectively. The corresponding PE is 19.0, 14.3 and 11.4 times, respectively, maintaining the "buy" rating.
Risk hint: downstream demand is not as expected, folding screen mobile phone sales are not as expected, and competition in the industry is intensified.