Events:
The company announced its third quarterly report: revenue in the first three quarters of 2022 was 325 million yuan, up 17.16% from the same period last year; net profit was-1.94 million yuan, compared with 42.19 million yuan in the same period last year; non-return net profit was-11.37 million yuan, compared with 36.19 million yuan in the same period last year.
Comments:
1. Intelligent cockpit revenue is high, new energy direction layout vehicle controller company Q3 single-quarter revenue of 129 million yuan, year-on-year growth of 18.83% Q3 revenue growth continues the trend of the first half of the year. In terms of business, the company's revenue from intelligent cockpit was 178 million yuan, up 58.49% from the same period last year; revenue from new energy was 46.19 million yuan, up 6.29% from the same period last year; and revenue from intelligent driving was 98 million yuan, down 18.81% from the same period last year. In the direction of intelligent cockpit, the company continues to expand new customers on the basis of substantial growth in the income of original customers such as Denso, Visteon and SAIC; in the direction of new energy, the company expands new products such as vehicle controller VCU on the basis of power domain and car body domain, focusing on the layout of new domestic automobile forces.
2. Rapid growth in the number of employees, grasp the development trend of automotive software, the company's gross profit margin in the first three quarters of the company is 33.38%, down 12.08% from the same period last year. The decline in gross profit margin is mainly due to the rapid growth of the number of employees. Under the trend of automobile "intelligence, networking and electrification", the demand for automotive software has increased rapidly, the company's customer orders have continued to grow, and the demand for personnel by project developers has increased significantly. By the end of the third quarter of 2022, the company had 2609 employees, an increase of 37.02% compared with the beginning of 2022. The company's new employees are trained to enter R & D projects or business projects, of which the proportion of new employees in business areas assigned to smart cockpits, intelligent driving and new energy is about 5:2:3.
3. Draw up the plan of "increasing production and increasing efficiency". It is expected that in the fourth quarter, the company will focus on drawing up the plan of "increasing production and increasing efficiency" in the fourth quarter, while ensuring product quality, speed up the progress of project development, and organize a special team to track and manage the project one-to-one, so as to realize the acceptance and delivery of Package project. We expect that the company's new hiring capacity will be released in the fourth quarter, and the company's revenue is expected to enter the high growth channel.
Profit forecast and investment advice: we maintain our previous profit forecast and expect the company's net profit from 2022 to 2024 to be 0.90max, 140max, 211m respectively, corresponding to the current market capitalization of the company PE of 50.12max 32.34max 21.39 times, maintaining the "buy" rating.
Risk tips: the risk of rising labor costs and declining gross profit margin; the risk of high customer concentration; the risk of less than expected R & D progress; the risk of fluctuation in the downstream automobile industry; the risk of intensified market competition; and the risk of COVID-19 epidemic.
