Event: the company released its three-quarter report for 2020, with revenue of 344 million yuan in the first three quarters, an increase of 13.73% over the same period last year, and a net profit of 68.34 million yuan, an increase of 3.61% over the same period last year. Of this total, Q3 achieved a revenue of 111 million yuan in a single quarter, an increase of 30.31% over the same period last year, and a net profit of 26.15 million yuan, an increase of 55.75% over the same period last year. The performance is growing rapidly, which is in line with the range previously predicted.
The volume of new products with high gross margin is gradually increasing, leading to a rise in gross profit margin. According to the announcement, the company's 3D AOI, 3D SPI and other high-end 3D testing equipment broke foreign monopolies to achieve import substitution in the second and third quarters, which is the reason for the rebound in Q3 performance. The company's new product 3D SPI entered the market promotion period in the second quarter, which was recognized by Pegatron, BYD, BOE and other customers. Q3 single-quarter gross profit margin was 41.39%, 3.42 pct higher than the same period last year, reaching the highest single-quarter gross margin level in history. As new 3D products continue to expand, profitability will continue to improve.
The cash flow has improved greatly and the operation quality is excellent. Q3 the company's net interest rate in a single quarter was 23.58%, an increase of 3.85 pct over the same period last year. In terms of period expenses, sales and management rates decreased by 1.58 and 3.17 pct respectively compared with the same period last year, R & D rates increased slightly by 0.85 pct, and financial rates increased by 11.5 pct, mainly due to increased exchange losses. In terms of business quality, Q3 received 125 million yuan in cash for selling goods and providing services in a single quarter, with a cash-to-cash ratio of 113% in a single quarter, a substantial improvement compared with 23% of Q2; and the net operating cash flow of Q3 in a single quarter was 51.62 million yuan, an increase of 36.7% over the same period last year.
Profit forecast and investment advice: the company's operating income from 2020 to 2022 is expected to be 438 million yuan, 725 million yuan and 909 million yuan respectively, and the net profit of returning mother is 91.66 million yuan, 172 million yuan and 217 million yuan respectively, corresponding to 0.56,1.06,1.34 yuan respectively, maintaining the "buy" rating.
Risk tips: downstream prosperity fluctuations, new product research and development is not smooth
