Event: the company released its third-quarter results report on October 24, 2022. In the first three quarters of 2022, the company's revenue was 1.097 billion yuan, down 10.59% from the same period last year; the net profit was 43.4302 million yuan, down 32.24% from the same period last year; and 327.556 billion yuan was deducted from non-net profit, down 42.84% from the same period last year. The company's 2022Q3 revenue in a single quarter was 381 million yuan, down 8.61% from the same period last year; the net profit returned to the mother was 12.9494 million yuan, down 34.45% from the same period last year; and the non-return net profit was 8.6915 million yuan, down 48.96% from the same period last year.
Security business is under short-term pressure, waiting for demand to recover: revenue in the first three quarters of 22 and the single quarter of Q3 was 1.097 billion yuan and 381 million yuan respectively, down 10.59% and 8.61% respectively from the same period last year. In terms of expenses, the sales, management, R & D and financial expenses of Q3 company are 6 million yuan, 31 million yuan, 39 million yuan and-4 million yuan respectively. In the first half of 2022, due to the complex evolution of the international situation, inflation, the spread of the COVID-19 epidemic and other factors, the prosperity of the security industry decreased significantly compared with the same period last year. In the future, with the weakening of the impact of the epidemic, and under the joint promotion of high definition and intelligence, the security video surveillance market is expected to gradually pick up, driving the company's performance to continue to improve.
New business development has been fruitful, automotive electronics & new displays build new growth points: the company continues to develop new technologies and new products, expand display market segments and intelligent driving areas, and seize the new opportunities brought about by the outbreak of the market. new business development has been fruitful. The company's millimeter wave radar and related products, AR-HUD related products, in-car projection products have been designated by new energy vehicle manufacturers. In the field of new display, the company has the ability to integrate parts and machine assembly, and has stored core technologies such as optical waveguides and Fresnel lenses of AR/VR-related hardware products, and has reached friendly cooperative relations with domestic well-known AR/VR companies such as Le Xiang, Xiaopai, Liangliang Vision, Nader and so on. In the field of intelligent driving, the company is forward-looking in the field of intelligent driving, at present, the products mainly include panoramic camera lens, thermal imaging lens, cabin detection lens, forward-looking lens and angle radar, vehicle-road coordination radar, vehicle vital signs detection radar and other products, the technology has been relatively mature. With the development of the trend of automobile intelligence and the promotion of the new display to the consumer market, the automotive electronics & new display market will continue to maintain a high boom. In the future, with the rapid penetration of the company's automotive electronics & new display business in the new market, the company's performance is expected to usher in a new round of explosion with the development of the industry.
Raise funds to strengthen the layout, and release production capacity to boost high growth. The company will issue no more than 475 million yuan of stock to specific objects in 2020, focusing on the intelligent construction project of new display and smart wearable products, which will be used to expand the production capacity of vehicle lens, intelligent projection and AR/VR. Upon completion, the company will achieve an annual production capacity of 18 million sets of car lens products, 2 million sets of new projection lens products and 580000 sets of VR/AR all-in-one machines. It will greatly increase the production capacity of vehicle lens products and new projection lens products, and optimize the company's product structure. The implementation of the fund-raising project will help to enhance the company's competitiveness and profitability, consolidate the company's competitive advantage in the industry, and accelerate the release of the company's performance.
Maintain the "buy" rating: we are optimistic about the company's leading position in security zoom. The company grows steadily in the field of security lens, and accelerates the layout to expand new types of display, intelligent driving and other emerging tracks. Automotive electronics & new display field performance is released rapidly, and the business growth potential is huge. With the relief of the epidemic and economic recovery and the gradual release of investment project capacity, the company will enter a new round of rapid growth, and its performance is expected to achieve high growth. It is estimated that the return net profit of the company from 2022 to 2024 is 0.66x1.15 / 190 million yuan respectively, and the EPS is 0.25According to the annual PE of 57x, 33x and 20x in 22-23-24.
Risk hint: market demand is lower than expected, market competition aggravates risk, intelligent driving penetration is lower than expected, and customer concentration is high.