Event: according to the company's third-quarter performance report in 2022, from January to September 22, the company achieved operating income of 1.627 billion yuan, + 65.87% year-on-year, and net profit of 119 million yuan, + 116.87% over the same period last year.
Benefiting from the booming automotive electronics market, the distribution business continues to grow. The company's distribution business is deep in the field of automotive electronics, covering automotive lighting, automotive cockpits and automotive passive components and other market segments. Benefiting from the high prosperity of the automotive electronics market, the company's distribution business has achieved steady and rapid growth. From January to September in 22 years, the revenue of the company's distribution business (excluding Yihai Nengda) was 1.205 billion yuan, + 29.13% compared with the same period last year.
Self-research chip business continues to develop, the income increases rapidly, and the profitability continues to improve. In the first three quarters of 22, the revenue of self-research IC business was 137 million yuan (excluding Euronix), which was + 243.64% compared with the same period last year, and the gross profit margin was 46.57%, + 9.89pcts. Based on the company's long-term layout and expansion in the field of automotive electronics, the company's self-developed IC business has the advantage of first-mover, realizing batch loading in domestic and foreign well-known automobile manufacturers such as BYD, ideal, XPeng Inc., Geely, etc., and has also been widely recognized by customers in the market. At present, the company's HVAC-driven IC, LDO and LED-driven IC products have been supplied to automobile companies with strong growth momentum.
Epitaxial mergers and acquisitions improve R & D layout and enhance market influence. Following the acquisition of 55% stake in Yihaineng, the company completed the acquisition of 60% stake in Ouchuangxin in August 2022. Ouchuangxin specializes in analog integrated circuit design, the main products are LED-driven IC, DC/DC and MCU, downstream mainly for automotive lamp afterloading market, electric vehicle market, furniture lighting market and so on. Through this transaction, the company has further improved the layout of the R & D team, while the company is expected to rely on the original sales channels to quickly introduce Ouchuangxin products to the car factory, with a strong synergy.
Investment suggestion: we expect the company to realize net profit of 1.71pm 2.65 / 393 million in 2024, EPS 2.14pm 3.31max 4.91RMB / share, and corresponding PE 35.71max 23.02pm 15.52 times. Coverage for the first time, giving a "overweight" rating.
Risk tips: new product research and development is not as expected; downstream demand is not as expected; industry competition is intensified.