Event: in the first three quarters of 2022, the company realized operating income of 1.722 billion yuan (YoY+34.55%), net profit of 347 million yuan (YoY+29.07%) and non-return net profit of 329 million yuan (YoY+24.26%). From the split point of view, 3Q22 realized income of 558 million yuan (YoY-0.71%), net profit of 105 million yuan (YoY-19.38%) and non-return net profit of 102 million yuan (YoY-21.21%).
Finance: gross profit margin decreased, R & D rates increased, short-term pressure highlighted. 3Q22's gross profit margin is 37.64%, which is 1.36pct lower than the previous month; the R & D expense rate is 14.80%, which is 0.84% higher than the previous month; the net profit rate of the company 3Q22 is 15.66%, which is less 4.70pct than the previous month.
Business: smart vision chip leader, professional security, intelligent hardware, automotive electronics blossom. The company is a leading provider of complete chips and solutions in the video-centric industry, and its performance growth is mainly driven by the expansion of the professional audio and video processing hardware product line and the increase of customer share. at the same time, based on the advantages of product power and product line, customer share is expected to have better room for growth. In terms of specific products, in terms of back-end new products, high-end NVR SoC is expected to maintain a high level from 3Q22 mass production and 4Q22 climbing to stable shipments; in front-end new products, high-end SoC return testing is progressing well and has been provided to major customers, and 1Q23 is expected to contribute to growth; in addition, major customers also continue to develop new models, and old products are also constantly designed and imported, and it is expected that the share will increase in the later stage. With the intensification of market competition, the cost of upstream raw materials has fallen, product prices will fall to a certain extent, and the overall is expected to achieve good growth.
Outlook: one-stop, front-end collaborative product layout to provide customers with cost-effective visual chips and solutions. In recent years, the company has expanded its advantages to the field of AIoT and vehicle vision, the company can provide customers with computing power, algorithms, AI product solutions, leading the market in promoting Pratt & Whitney AI; vehicle series image processing and link transmission chips have been imported by multiple head Tier1 parts manufacturers, and the products have been mass produced in a number of vehicle factories, successfully replacing the import scheme.
Profit forecasts and investment advice. As the leading security chip leader in China, after the acquisition of Mou core technology, the company can provide customers with front-end to back-end, full-range, multi-level video processing chip products, while the company's convertible bond project actively layout automotive electronics and AI NVR and AI IPC master chips, newly upgraded new applications open a new round of growth engine. We estimate that the EPS of Fuhanwei from 2022 to 2024 is 2.06,2.89,3.83 respectively. Combined with the comparable company valuation, Fuhanwei is given a valuation of 32-40 times PE in 2022, with a reasonable value range of 65.92-82.40 yuan and a rating of "better than the market".
Risk hint. Product research and development is not as expected, related party risk, raw material price fluctuation, international trade friction risk.