Items:
The company released its Quarterly report of 2022 on October 29th. In the first three quarters of 2022, the company achieved operating income of 733 million yuan (YoY-18.40%), net profit of 179 million yuan (YoY + 4.52%), net profit of 146 million yuan (YoY-13.86%), gross profit margin of 39.15% (YoY + 2.07pct) and net profit of 24.64% (YoY + 5.69pct). 2022Q3, the company achieved an operating income of 208 million yuan (YoY-37.97% YoY QoQ 21.17%), a net profit of 43 million yuan (YoY-42.98% QoQ-30.57%), a gross profit of 35.96% (YoY-8.51pctQuoQ-2.13pct) and a net profit of 20.80% (YoY-1.92QoQ-3.12QQ).
Comments:
Affected by the decline in consumer electronics demand and the destocking of Internet of things module channels, the company's Q3 performance is under pressure.
22Q3's revenue was 208 million, a year-on-year decrease of 37.97%. Q3's single-quarter revenue and profit were all under pressure, mainly because the demand for consumer electronics on the demand side was still weak and Q3 Internet of things module downstream channels went out of inventory, the demand in the two major downstream areas were under pressure, and the decline in crystal oscillator sales led to the company's revenue pressure. Q4 is expected to increase with the introduction of new customers. High gross margin KHz lithography products support the company to maintain a high level of profitability. 22Q3 has a gross profit margin of 35.96% and a net profit rate of 20.80%, which is still at a historically high position, mainly due to the strong competitiveness of the company's lithography KHz products and the maintenance of high water level gross profit on the basis of the orderly operation of investment projects and the development of new production capacity in 2021.
The price of Q3 crystal oscillator is stable as a whole, and the company improves the proportion of small-size products to a stable gross profit margin by optimizing the process. In terms of KHz products, the company achieves a comprehensive automation upgrade of the production line and maintains a high gross profit margin of lithographic KHz products through process improvement. TF products as the company has occupied a larger market share of the dominant products, gross profit margin increased compared with the same period last year. For MHz products, before the current price adjustment to the price increase, the contribution of GM 3225 products to the company's gross profit has gradually decreased, while the downstream demand for small-size MHz 2016 MHz 1612 products is gradually increasing, and the proportion of revenue in the company is gradually increasing. Active products are currently being imported into domestic GNSS applications.
The verification of high-quality customers has been accelerated, the company has further expanded its product categories, and domestic substitution has been promoted smoothly in the long run.
In the Internet of things industry, the company's new product applications continue to get R & D certification from downstream customers, module customers break through Guanghetong, Rihai Intelligence, and meter communication modules introduce high-quality customers. In terms of Beidou application, the company supplies to Daxi and other customers. In terms of automotive electronics, the company has passed the verification of high-quality tier1 and tier2 one after another. In addition to BYD and Hyundai, it has newly entered the supply chain of high-quality companies such as NIO Inc., CRRC and Ningde era. In terms of product categories, the company strengthens the research and development of new products and launches new products to meet the domestic downstream demand.
Investment suggestion: the company's increase in new product research and development will continue to increase global market share, due to the decline in demand for consumer Internet of things scenarios such as smart home, and the demand for Internet of things modules is affected by downstream destocking. We adjust the company's revenue forecast for 2022-2024 to 1.271 million yuan 1.667 billion (the original value is 1.376 billion 1.816 billion). The net profit of return to the parent is 2.56 pound (422 million yuan) (the original value is 315) (400,000,000), and the corresponding EPS is 0.92 (1.19)) (the original value is 1.13 (1.44)).
The company's future performance is growing steadily. With reference to the comparable company valuation, the company is given 22x PE, corresponding to a 23-year EPS,6 target price of 26.18 yuan per share, maintaining a "strong push" rating.
Risk tips: Internet of things demand is lower than expected, the epidemic causes supply chain risk, product competition leads to price decline, and so on.
