When: on October 29, the company released its quarterly report of 2022. In the first three quarters, the company achieved operating income of 733 million yuan,-18.40% compared with the same period last year; net profit of 179 million yuan, 4.52%; and non-return net profit of 146 million yuan, 13.86% of the same period last year.
The performance is in line with expectations. From a quarterly point of view, the company's Q3 achieved revenue of 208 million yuan, year-on-year-37.97%, month-on-month-21.17%; return to the mother net profit of 43 million yuan, year-on-year-42.98%, month-on-month-30.57%. The reason for the significant month-on-month decline in Q3 performance: as consumer demand continues to decline, the volume and price of the company's crystal oscillator products have fallen. However, the company continues to optimize the product structure, continue to promote high-end miniaturized KHz, ultra-high-frequency MHz, car gauge-level crystal oscillator and other high-end product research and development. While consumer demand continues to be weak, it still achieves strong profitability.
The gross profit margin increased compared with the same period last year, and the rate decreased during the period. 1) Gross profit margin: the company's gross profit margin in the first three quarters was 39.15%, an increase of 2.07 pct over the same period last year. On a quarterly basis, Q3 gross profit margin is 35.96%, year-on-year-8.51 pct, month-on-month-2.13 pct. 2) period rate: the company's R & D, management, sales and financial rates for the first three quarters are 5.70%, 6.24%, 1.87%, 2.48%, 1.31%, 1.15, 0.18, 2.96 pct.
Accelerate the layout of high-end products such as lithography miniaturization, ultra-high frequency MHz, XO, TCXO, car gauge crystal oscillator, RTC module, etc. The company continues to adjust its product structure, mass production of UHF 76.8,80,96, 125MHz and ultra-miniaturized 1612, 1210, 1008 products; pre-research of SMD micro-KHz1210; promotion of R & D and industrialization in special application areas including automotive specification level, RTC wafer, industrial grade, etc.; mass production and yield improvement of active crystal XO, TCXO, OCXO series products; development of automotive gauge products including 3225, 2016, K3215, OSC clock oscillator; promotion of research and development of RTC clock module and small batch production. With the gradual pick-up of Q4 terminal demand, superimposed high-end lithography MEMS products, the company's long-term growth can be expected.
Profit forecast: based on the further decline in Q3 consumer electronics demand, we lowered our 22-24 net profit to 2.16,3.20 and 457 million yuan (the previous value was 3.0,4.6 and 540 million yuan), which was-11.8%, 48.4% and 42.6% respectively compared with the same period last year. Considering that the company is in an absolute leading position in China in high-end products such as ultra-miniaturized KHz, ultra-high-frequency MHz and car gauge-grade crystal oscillator, we are optimistic about long-term development and maintain a "buy" rating.
Risk hint: the recovery of consumer electronics demand is not as fast as expected; the mass production of high-end products is not as expected.