Event: the company released a report for the third quarter of 2022, with revenue of 2.197 billion yuan in the first three quarters, an increase of 2.37% over the same period last year, a net profit of 213 million yuan, a decrease of 3.89%, and a deduction of 277 million yuan in non-net profit, an increase of 26.25%.
Income is growing against the trend, deducting non-net profit has improved significantly. Under the background of the complex and changeable world situation and multi-point distribution of the domestic epidemic in 2022, the company actively develops and adjusts various business modules to achieve overall income growth. Revenue in the first three quarters of 2022 was 2.197 billion yuan, a slight increase of 2.37 percent over the same period last year, and net profit was 213 million yuan, down 3.89 percent from the same period last year. The decline in the company's net profit in the first three quarters was mainly affected by non-recurrent profits and losses, of which the floating loss on forward settlement of foreign exchange increased over the same period last year, resulting in a decrease of 68.17 million yuan in net income from fair value changes compared with the same period last year. From the perspective of deducting non-net profit, the company deducted non-net profit of 277 million yuan in the first three quarters, an increase of 26.25% over the same period last year, of which Q3 deducted non-net profit of 88 million yuan in a single quarter, a substantial increase of 49.05% over the same period last year.
Gross profit margin continues to repair, exchange gains and losses reduce the overall cost level. The company's gross profit margin has been revised upward since the beginning of the year. 2022Q3's single-quarter gross profit margin has been repaired to 31.55%, which is higher than the same period last year / month-on-month, respectively. The increase in gross profit margin is mainly due to the optimization of product structure, the market promotion of new component-based products and the decline in raw material prices. From the cost point of view, the company's sales expense rate and management expense rate (including R & D expenses) are stable as a whole. The 2022Q3 sales expense rate is about 2.53%, which is the same as the same period last year; the management expense rate (including R & D expenses) is about 13.04%, a decrease of 1.03pct compared with the same period last year. At the same time, the company's exchange earnings increased compared with the same period last year, resulting in a sharp decrease of 409.66% in financial expenses in the first three quarters compared with the same period last year, of which the Q3 financial expense rate was about-4.03%.
Multi-field layout to build a complete product matrix, optimistic about the company's volume in the high-prosperity track business. The company is the largest micro-motor modular solution provider in China, with internationally competitive R & D base and advanced automation production line, and closely revolves around the "multi-application field" strategy. at present, it has formed a comprehensive business capability dominated by a wide variety of motor products, supporting relevant precision structures, drive control design and manufacturing solutions. The products cover home appliances, automobiles, medical care and other downstream key areas, and are expected to rapidly increase their share in high-end medical devices, energy storage electronic pumps and other high-prosperity racetracks in the future.
Profit forecast and investment advice. We estimate that the operating income of the company from 2022 to 2024 will be 3133,522 million yuan, and the net profit of return to the mother will be 296 million yuan, corresponding to the PE of 21.1 inch 15.6 inch 11.9X. The company continues to improve the product matrix and cut into emerging areas, is expected to achieve valuation, performance improvement, maintain the "buy" rating.
Risk hints: macroeconomic downside risks; market competition aggravates risks; new areas and new product expansion do not meet expectations.