This report is read as follows:
The net profit of home ownership increased by 83% in the first three quarters; the first batch of MPCVD equipment has entered the commissioning operation stage and production capacity is expected to continue to expand, and the Q4 US consumption season is expected to boost the improvement of the industry.
Main points of investment:
Maintain and increase holdings. In the first three quarters, the revenue was 394 million yuan / + 26.6%, the return net profit was 129 million yuan / + 83%, and the deduction of non-net profit 110 million yuan / + 89% was in line with previous expectations. Maintain the forecast for 2022-24 that the EPS will be 0.31, 0.5 and 0.71 yuan, with a growth rate of 64, 61 and 43 percent, and a target price of 21.08, and an increase in holdings.
Q3 continued high net profit growth and increased gross / net interest rate. 1) the revenue growth rate of Q1-Q3 in a single quarter is 38x28x16%, the net profit growth rate is 82.6%, and the net profit growth rate is 83.3%. Deducting the non-net profit growth rate of 47130pm 100%, the continued high net profit of Q3 shows strong business resilience, mainly due to the good development of petroleum composite business and the rapid growth of precision tool business. 2) Gross profit margin 55%/+0.5pct, net profit 31.5%/+8.8pct in the first three quarters 3) period expense rate 24.5%/-8pct, including sales 7.1%/+0.5pct, management 11.1%/-4pct, R & D 11.1%/+0.4pct, finance-4.9% Mather 4.8 PCT 4) operating net cash flow of 100 million yuan / + 13.4%.
Steadily promote the layout of nurturing diamonds and production capacity is expected to continue to expand, Q4 U. S. consumption season is expected to promote the improvement of the industry. 1) Tianxuan (53.22% owned by the company) independently mastered the production technology of MPCVD equipment manufacturing and nurturing diamonds, which can stabilize the output of colorless CVD nurturing diamonds and break through the Emaple F color; 2) the peak consumption season in the United States is approaching, and the bearing of cultivating drills is expected to improve. It is expected that the output value and sales of Q4 nurturing diamonds will increase steadily, and the production capacity expansion is expected to speed up. 3) Tianxuan carries out industrial applications in high-end advanced manufacturing fields such as semiconductors and power devices / carries out research and development on diamond optoelectronic functional devices with Zhengzhou University, which is in line with the direction of policy support; 4) Strategic cooperation Hainan jewelry, jointly promote the development of nurturing drills, the synergy and cooperation mechanism between the upstream and downstream of the industrial chain are expected to be strengthened.
Polycrystalline diamond compact 337 won the case, which is good for the promotion of overseas business. 1) according to the final announcement issued by the US International Trade Commission (ITC) on October 3, it was found that the rights of the American synthetic company for the three patents claimed by the company were invalid and the investigation was terminated; 2) this victory is good for the company to promote its business in the US market, and Q4 has support in terms of the prosperity of oil production and investment in the precision cutting tool business.
Risk hint: RMB exchange rate appreciates sharply, crude oil price falls sharply, nurturing drill is lower than expected.