Event: the company released the three-quarter report of 2022, with revenue of 6.178 billion yuan in the first three quarters of 2022, + 15.03% year-on-year; net profit of 601 million yuan, + 25.82%; and non-return net profit of 490 million yuan, + 17.82%. Q3 achieved revenue of 2.485 billion yuan in a single quarter, + 7.33% year-on-year, + 39.63% month-on-month; net profit of 417 million yuan, + 36.64%, + 563%; and deduction of non-return net profit of 322 million yuan, + 11.64%, + 481%.
Steady growth in performance and substantial increase in Q3 gross profit margin: the company's revenue and net profit in the first three quarters of 2022 continued to grow compared with the same period last year, mainly due to the smooth expansion of new business and new industries. In terms of new business, the company's high-precision connectors, LCP and modules, automotive interconnection products and other new products continue to expand; in new industries, the downstream applications of the company's products have rapidly expanded to smart cars, smart homes, commercial satellite communications and other emerging application fields. By constantly adjusting and optimizing internal management measures and strengthening fine budget control, the company's operating efficiency has been steadily improved. Among them, the company's Q3 single-quarter gross profit margin increased by 0.23pcts/7.32pcts to 25.99% compared with the same period last year, and the net profit margin increased by 3.45pcts/13.34pcts to 16.88% compared with the same period last year. The turnover days of accounts receivable in the first three quarters decreased to 97 days from 124 days in the same period last year, and the net cash flow generated by operating activities in the first three quarters increased by 56.86% compared with the same period last year. In terms of expenses, the company's sales / management / R & D / financial expenses in the first three quarters were RMB 0.407, respectively, and the changes in the same period were 0.66%, 3.35%, 7.96%, 0.06%, respectively. The overall cost control is good.
R & D investment remains high, which is expected to build high-tech competition barriers: in the first three quarters of 2022, the company invested about 519 million yuan in R & D, accounting for 8.41% of the company's revenue, and the proportion of R & D investment continued to remain high. Through continuous R & D investment, the company has made good progress in new business areas such as high-performance precision connectors, LCP modules, millimeter wave antennas and arrays, automotive interconnection products, passive components, UWB antennas and modules. By the end of September 2022, the company had applied for 2338 patents. In the first three quarters of 2022, the company applied for 278 new patents, including 64 5G antenna patents, 23 LCP patents, 18 UWB patents, 57 WPC patents, 37 BTB connector patents, 5 resistance patents and 16 MLCC patents. The company insists on making continuous investment in basic materials and basic technology research, which will help to enhance the company's technological competitiveness, promote the long-term development of the company in the future, and create technical barrier advantages.
Continue to promote new business, new industry layout, to create a new round of performance growth curve: the company continues to promote new business, new industry layout. In the field of precision connectors and high-frequency high-speed connectors, the company's high-precision connectors not only sell in the consumer electronics market, but also begin to supply large customers in large quantities in the field of commercial satellite communications. In the field of automotive interconnection products, the company provides customized products such as in-car wireless charging, in-car antennas, UWB modules and integrated supporting services. At present, it has obtained supply qualifications from Volkswagen, Dongfeng Honda, Guangzhou Automobile Honda, FAW Red Flag, FAW-Pentium, Mercedes-Benz, Changan Automobile, Rivian and other automobile manufacturers, and some projects have been gradually landed; in the field of LCP and millimeter wave antennas, the company has supplied large quantities of global mainstream customers with LCP products during the reporting period. In the field of passive components, aiming at the positioning of high-end passive components, the company has successfully developed multi-category and multi-type resistors and MLCC products, in which the MLCC project has been promoted in an orderly manner, and some equipment have been put into trial production one after another. It is expected that new business and new industries will continue to bring strong growth power to the company, constantly optimize the company's revenue and profits, and build a new growth pole of the company's performance in the future.
Maintain the "buy" rating: the company continues to increase R & D investment, enhance technological competitiveness, new industries, new business expansion, is expected to become a strong growth of the company's performance of the new engine. It is estimated that the company's net return profit from 2022 to 2024 is 7.861045max 1.411 billion yuan respectively, EPS is 0.82 108max 1.46 yuan, corresponding to PE 21X, 16x, 12x, maintaining the "buy" rating.
Risk tips: new business development is not as expected, downstream demand is lower than expected, the impact of the epidemic is higher than expected, and market competition aggravates the risk.