Event: Sotavig released the third quarterly report of 2022, the company achieved revenue of 440 million yuan in the third quarter, an increase of 16.81% over the same period last year; net profit of 1 million yuan, an increase of 20.81% over the same period last year; and the net profit of returning home was positive for two consecutive quarters. Revenue in the first three quarters totaled 1.32 billion yuan, an increase of 12.08 percent over the same period last year.
Multiple factors affect profitability: the gross profit margin of the company from Q1 to Q3 is 13.39%, 15.68%, 15.93%, showing an upward trend quarter by quarter, but there is still a big gap compared with the level of about 20% last year, dragging down the overall profitability of the company. The main reasons are: the company's operation was affected by the epidemic, logistics and raw material supply were seriously affected; the company's products are used in the field of consumer electronics, sales and macroeconomic correlation is strong; raw material price fluctuations drive down the gross profit margin. In view of the poor profitability of reflective materials business, the company has comprehensively optimized and integrated its procurement, production and sales work. At the same time, the prices of commodities such as aluminum and chemical raw materials, which account for 40% of the cost of reflective materials, are stable, procurement demand from downstream customers is expected to pick up, and the company's profitability is expected to be further repaired.
Micro / nano devices and gratings lead future growth: the company's equipment products include laser direct writing lithography machines and nano-imprint devices. In addition to self-use, universities and scientific research institutes, the company's laser direct writing lithography equipment has been shipped and sold to enterprises in the semiconductor field; at the same time, according to the needs of relevant customers, the company has provided them with nano-imprint equipment; the gross profit margin of the company's equipment products is higher than 50%. In addition, the company provides positioning grating products for lithography machines to Shanghai Microelectronics. Grating devices are important parts of lithography equipment, which can test the change of relative displacement and absolute position. In the production of double worktable of domestic lithography machine, the cost of grating system accounts for 3.99% to 9.41%, which has high technical value and growth potential. Equipment and raster products are expected to improve the company's profitability in the future.
Profit forecast and investment rating: from 2022 to 2024, we expect the company to achieve operating income of 21,657,153,390 million yuan and net profit of-0.08103x267 million. The corresponding PE in 2023 and 2024 is 50.00max 19.33 times, covering it for the first time and giving it an "overweight" rating.
Risk tips: the progress of research and development of new equipment and technology is not as expected; the price of raw materials is rising; and the consumer electronics market is depressed.