[investment points]
There was a high growth in performance in the third quarter. In the first three quarters of the announcement, the company achieved operating income of 8.071 billion yuan, an increase of 3% over the same period last year, a net profit of 351 million yuan, an increase of 20% over the same period last year, and a non-return net profit of 306 million yuan, an increase of 44% over the same period last year. In the third quarter alone, the operating income was 2.876 billion yuan, an increase of 4% over the same period last year, and the return net profit was 160 million yuan, an increase of 67% over the same period last year. The non-return net profit was 130 million yuan, an increase of 55% over the same period last year. The growth of results in the third quarter accelerated significantly.
In the first three quarters, the gross profit margin was 12.46% higher than the same period last year (the adjusted gross profit margin was 11.64%), and the net profit margin was 4.34%, an increase in 0.61PCT compared with the same period last year. The gross profit margin in the third quarter was 12.77%, an increase of 1.37PCT over the same period last year (the adjusted gross profit margin for the same period last year was 11.40%), and the net profit margin was 5.55%, an increase of 2.09PCT over the same period last year.
Traditional business overcame the pressure in the first half of the year and began to improve. In the first half of the year, the company's main production bases were affected by the epidemic one after another, resulting in delays in order production and delivery, and operating income and net profit were affected accordingly.
In the face of the complex situation at home and abroad, the company has responded actively to accelerate the relocation of factories in Vietnam and the transformation of new business plants, expand production and reduce costs. While steadily developing the traditional business of communication equipment manufacturing, we will vigorously open up the new business market of automotive electronics. Since the second quarter, material supply and raw material prices have gradually returned to normal, the company has complied with downstream demand, the scale of traditional business has continued to expand, profitability has further improved, and gross profit margin and net profit margin have both achieved year-on-year growth. The exchange rate of RMB depreciates against the US dollar, and the exchange gains from export business are also beneficial to the overall profits.
With the steady progress of automotive electronics business, it is of great significance for lidar customers to break through. At the beginning of 2022, according to the development strategy, the company formally set foot in the automotive electronics industry and established a wholly-owned subsidiary Suzhou Gongjin Automotive Technology Co., Ltd. Taicang Tongwei Factory will be used as the production base to cut into the automotive electronics market from PCBA manufacturing, mainly providing R & D and production of electronic components in the field of intelligent cockpit and ADAS (Advanced driving Assistance system). Recently, the company has steadily landed a number of milestones, and announced on October 9 that it has passed the IATF16949 certification, which enhances the confidence of customers in the automotive field in the quality of the company's products and helps to expand new customers and products. Subsequently, on October 27, the company announced that it had obtained the qualified supplier certification of the head lidar manufacturer. We believe that from the capability dimension, the company's obtaining vehicle regulation certification opens the growth space from PCBA to OEM; from the product dimension, the company's breakthrough in lidar customers will significantly increase the bicycle value of the company's products; from the customer dimension, capability improvement and iconic customer breakthrough are expected to promote the company's automotive electronics business to open up more customers. The growth logic of the three dimensions is clear, and we are optimistic about the development of the company's automotive electronics business.
In addition, the subsidiary Shanghai Gongjin Microelectronics, the advanced packaging and testing business in the field of smart sensors, has generated revenue. It is expected to form a synergy with other business sectors in the future.
[investment advice]
The company communication OEM main business steady growth, in the automobile intelligent strategic opportunity period quickly cut into the automotive electronics business, continuous landmark progress, in the capability, product, customer three dimensions of growth path is increasingly clear. It is optimistic that the company will provide more efficient and low-cost precision manufacturing services for the automobile industry chain, and the market space is huge. It is estimated that the operating income of the company from 2022 to 2024 is 116.01 yuan 128.93 / 14.58 billion yuan, and the net profit of return to the mother is 417 million yuan, respectively. The corresponding EPS is 0.53 pound 0.60 million yuan, and the corresponding PE is 0.71 times that of 17-15-13, respectively.
[risk Tip]
The demand of traditional communication service is lower than expected.
The company's new automotive electronics products and new customer expansion fell short of expectations; the company's new automotive electronics production capacity fell short of expectations.
Short-term effects such as raw material price fluctuations, exchange rate changes, etc.