Taijing Technology released the third quarter report of 2022: in the first three quarters of 2022, the company realized operating income of 733 million yuan, a decrease of 18.40% over the same period last year, a net profit of 179 million yuan, an increase of 4.52% over the same period last year, and a net profit of 146 million yuan after deduction, a decrease of 13.86% over the same period last year.
Main points of investment
Q3 revenue and profits are under pressure, and R & D investment continues to increase.
Due to the repeated epidemic situation, weak market demand and other adverse factors, the company's customer orders declined in a single quarter, and revenue and profit were under pressure. In a single quarter, 2022Q3 achieved revenue of 208 million yuan, a decrease of 37.97% from the same period last year, 21.17% from the previous month, and a net profit of 43 million yuan from the previous quarter, a decrease of 42.98% from the same period last year and 30.59% from the previous year. In terms of profitability, Q3 single-quarter gross profit is 35.96%, month-on-quarter-2.3pct, the gross profit margin in the first three quarters is 39.15%, and the net profit is 24.64%. In terms of expenses, the company achieved sales, management and financial expenses rates of 1.87%, 6.24% and-2.48% respectively in the first three quarters of 2022, of which the decrease in financial expenses was mainly due to the increase in exchange rate gains caused by exchange rate changes. In terms of R & D expenses, the company continued to increase R & D investment in the first three quarters, with R & D expenditure of 41.7617 million yuan, an increase of 5.85% over the same period last year, in order to maintain the continuous R & D and improvement of technology, equipment, fixtures, new products and supporting upstream materials. Affected by the increase in customer rebates and government subsidies, and the decrease in payment of goods and expenses, the cash flow generated by the company's operating activities in the first three quarters increased by 40.69% over the same period last year.
Actively open up new areas such as the car regulation market, build a long-term growth logic company to cultivate the crystal oscillator industry for more than ten years, and is one of the few crystal manufacturers in the industry with the R & D and production capacity of a full range of products. In the face of the impact of the external environment, the company relies on the advantages of semiconductor lithography technology to promote the research and development of new clock products in new application fields, and strengthen the development and launch of terminal markets such as the Internet of things, industrial control, automotive electronics, modules, optical communications and so on, to ensure the sustained and healthy development of the company. In the semiconductor lithography process, continue to optimize the semiconductor lithography process, promote the lithography kHz small size (2012, 1610) characteristics optimization and yield improvement, lithography MHz UHF products industrialization. In the development of miniature quartz wafers, miniature SMD crystal resonators and closed testing of high-stability crystal oscillators, we independently develop all kinds of special equipment, and the self-produced upstream materials extend from DIP to SMD products, maintaining a high product quality rate of more than 97% while further expanding the company's scale and cost advantages. Based on the application requirements of industrial Internet, server, Beidou, 5G base station and automotive electronics, the company has increased the construction and re-investment of XO, TCXO and other production lines. With the development of intelligent cars and the introduction of customers, we focus on promoting the construction of production lines, the development and process optimization of product numbers, and the improvement of production capacity, laying a solid foundation for the company's long-term growth.
Profit forecast
We believe that the company is affected by the weak consumer terminal demand in the short term, and does not change the long-term steady development trend. It is predicted that the company's income from 2022 to 2024 will be 12.53,15.68,1.953 billion yuan respectively, the EPS will be 0.87,1.10,1.39 yuan respectively, and the current stock price corresponding to PE is 23,18,15 times respectively, maintaining the "buy" investment rating.
Risk hint
The downside risk of industry prosperity, the risk that the progress of capacity expansion is not as expected, the risk of intensified competition in the industry, the risk of product price fluctuation, and so on.