Business revenue increased by 54% compared with the same period last year, and intelligent equipment was synchronized with electric control of motors. In the first three quarters, the company achieved operating income of 2.166 billion yuan, an increase of 54% over the same period last year. Of this total, the revenue from the intelligent equipment business was 1.38 billion yuan, up 23% from the same period last year; and the revenue from the electric motor control business was 786 million yuan, up 177% from the same period last year. The net profit of returning home in the first three quarters was 97 million yuan, down 30% from the same period last year. In the third quarter alone, the company achieved operating income of 742 million yuan, an increase of 77% over the same period last year, down 15% from the previous month. Of this total, the intelligent equipment business was 463 million yuan, up 48% from the same period last year, and the motor electronic control business was 279 million yuan, up 161% from the same period last year. The net profit of returning to the mother in the third quarter was 35 million yuan, down 27% from the same period last year and up 35% from the previous quarter. The new energy vehicle industry is growing rapidly, intelligent equipment and motor electronic control business are synchronized, and the income is growing rapidly. At the same time, due to repeated epidemics, rising prices of raw materials and changes in income structure, the company's overall net profit level has been affected.

The change of sales structure affects the short-term gross profit margin and the month-on-month improvement of profitability. In the first three quarters, the company achieved a gross profit margin / net profit margin of 17.78% / 4.49%, respectively, a decrease of 7.86% / 5.41% compared with the same period last year; the company's sales / management / R & D / financial expense rate was 2.79% / 5.04% / 7.53% / 0.80%, respectively, a decrease of 0.54% / 0.46% / 0.40% / 0.82% over the same period last year. In the third quarter, the company achieved a gross profit margin of 18.00%, 4.65% respectively, down 6.55% from the same period last year, and up 1.74% by 1.63% from the same period last year. The company's sales / management / R & D / financial expense rates were 2.93%, 5.27%, 7.80%, 0.67%, 0.54%, 0.57, 0.72, 0.71% and 0.65%, respectively. The month-on-month increase is 1.11, 0.39, 0.48, respectively. Due to the relatively low gross profit margin of the motor electronic control business continues to increase, affecting the company's overall gross profit margin. Raw material prices stabilized relatively in the third quarter, the company continued to promote digital production management, gross profit margin improved significantly compared with the second quarter.

Multi-in-one products reduce cost and increase efficiency, and enter the supply system of head car enterprises in an all-round way. According to the data of new energy in the NE era, the all-in-one electric drive assembly of Giant one Technology has entered the stage of deep integration in the power domain, which can greatly reduce the cost, reduce the weight and volume by 10% and 20%, and increase the efficient area of the system. The company's intelligent equipment business mainly includes car body connection production line, electric drive assembly testing production line, power battery assembly testing production line, etc., the main customers are Tesla, Inc., BYD, NIO Inc., ideal, Ningde Times and so on. The company's electric motor control business, the main customers include Jianghuai, Chery, Jiangling, Dongfeng Honda, Guangzhou Automobile Honda, Vietnam Vinfast, etc., and has been designated by Li Auto Inc. and other new car-building forces. The company has sufficient orders on hand, high-quality customer structure, and continuous improvement in profitability, deeply benefiting from the rapid development of the new energy vehicle industry.

Risk hint: sales of new energy vehicles are less than expected 61, and raw material costs have risen sharply.

Investment advice: maintain profit forecasts and maintain "overweight" ratings.

The company's electric drive and equipment business two-wheel drive, customer structure of high-quality 782, we maintain the profit forecast, the company is expected to 2022 Universe 2023 in 2024 EPS of 1.23 shock 2.42 pounds 3.43 yuan, corresponding to PE of 37-19-13, respectively, 20w times, maintain the "overweight" rating.