Event: the company released the third quarter report that in the first three quarters of 2022, the operating income was 2.166 billion yuan, up 54.0% from the same period last year; the net profit from homing was 97 million yuan, down 30.2% from the same period last year; the operating income in the third quarter was 742 million yuan, up 76.7% from the same period last year; the net profit from homing was 35 million yuan, down 26.6% from the same period last year.
Motor electronically controlled volume, business structure adjustment so that the profit space is slightly compressed. In the third quarter, the company's intelligent equipment business achieved revenue of 463 million yuan, an increase of 48.0% over the same period last year, while the revenue of motor electric control business reached 279 million yuan, an increase of 161.0% over the same period last year. The gross profit margin of the company's electric motor control products is generally maintained at 10% Mur15%. The substantial increase in the scale of its revenue has caused some pressure on the company's overall profit space, but the improvement of the business structure has a long-term driving effect on the company's expansion of its own territory. The company is committed to making electric motor control into another leading product.
From the performance point of view, the company's motors, motor controllers, electric drive system power density, maximum speed, peak efficiency, peak power all maintain a leading level in the industry, and related products can effectively reduce vehicle quality. improve its space utilization and vehicle mileage; in terms of production lines, the company is currently actively carrying out production expansion projects and is expected to add 500000 sets of electric drive system capacity by the end of 2023. It is expected that the company's business will maintain the trend of rapid growth, and the profit space will also be effectively repaired.
Research and development efforts will be intensified to transfer short-term profits and pursue long-term layout. The company's R & D expenditure in the third quarter was 58 million yuan, an increase of 61.9% over the same period last year; so far this year, the cumulative R & D investment was 163 million yuan, an increase of 46.1% over the same period last year. The company uses R & D funds to build a two-line pattern of "intelligent equipment + motor electric control", keeping the technical level of the two major businesses at the forefront of the industry. In terms of intelligent equipment, the company currently focuses on battery intelligent equipment, new body manufacturing technology, laser welding technology and other directions; motor electronic control business mainly focuses on flat wire, oil-cooled motor, silicon carbide motor controller update iteration. The company has established a cooperative relationship with SAIC, Geely, Tesla, Inc. and other downstream benchmark car companies, and it is expected that the upward breakthrough in product performance can quickly win customer certification.
Investment suggestion: based on the accumulation of previous technology and production lines, as well as continuous follow-up R & D investment, Juyi Science and Technology has successfully created a two-line pattern of "intelligent equipment + motor electric control", and is showing a trend of rapid expansion. The company already has a high-quality customer certification basis, when the new generation of intelligent equipment and motor electronic control products tend to mature, the company is expected to quickly recover the pre-R & D costs, the profit pain period may be coming to an end. We estimate that in 2022-2024, Juyi Technology will achieve operating income of 3.60Universe 4.952 billion yuan and net profit of 1.52 million yuan. The corresponding EPS is 3.85 million yuan per share, and the closing price on October 28, 2022 corresponds to 37.82 / 17.44x10.86 times of PE, maintaining the "overweight" rating.
Risk tips: raw material price fluctuations, customer introduction is not as expected, capacity expansion is not as expected