Events:
The company announced that in 2022, Q3 realized operating income of 5373 million yuan (YoY+27%,QoQ+19%), gross profit of 1022 million yuan (YoY+6%,QoQ+24%) and net profit of 234 million yuan (YoY+28%,QoQ+62%).
Main points of investment:
Overall performance: Q3 revenue rose 27% in 2022 compared with the same period last year, mainly due to the increase in revenue contribution from overseas customers' traditional peak season, electromagnetic transmission and precision structural parts merger segment, gross profit was 19%, down 3.7% from the same period last year, while net profit was 234 million yuan, but increased by 27.5% over the same period last year, due to the company's efficiency through cost reduction, strict inventory management and increased turnover. At the same time, capital expenditure such as fixed assets has been reduced.
Acoustic products: in 2022, Q3's acoustic product revenue increased by 5.6% to 2.33 billion yuan compared with the same period last year, due to the strong driving force of overseas customers to continuously improve product competitiveness and ensure stable delivery capacity, while in the Android market, the company launched Combo and Opera coaxial solutions. In terms of in-vehicle acoustics, the company has begun mass production and delivery, and has obtained a number of designated projects, including overall solutions, local speakers and tuning, covering traditional car companies, new forces and overseas mid-and high-end car brands.
Optical products: in 2022, Q3's optical product revenue increased by 45.1% to 567 million yuan compared with the same period last year, of which 1G5P and 1G6P products have been steadily mass-produced and delivered. The company's unique wafer-level glass technology makes the excellent optical performance of WLG lenses continue to improve the effect of mobile phone images. In addition, the company has successfully developed the 3P VR Pancake optical machine module and will complete the construction of the mass production line within the year, further strengthening the company's solid technical and mass production foundation in the VR market and layout meta-universe.
Electromagnetic drives and precision components: revenue from electromagnetic drives and precision components of Q3 company increased by 47.3% to 2.05 billion yuan in 2022 compared with the same period last year. In terms of electromagnetic transmission, the company combines master acoustic technology with X-axis linear motor, which has advantages in performance, space, weight and so on. and continue to enhance consumers' hearing and tactile experience in audio-visual, games and other scenes. In terms of precision structural components, the company currently accounts for a stable proportion of high-end models and continues to expand its high-value business.
Sensors and semiconductor devices: in 2022, Q3 sensors and semiconductor devices increased by 66.1% to 421 million yuan compared with the same period last year, and its gross profit margin decreased from 13.2% of Q2 to 7.4%. The company has made some concessions to develop the MEMS microphone business with its own chips.
At the same time, the company's intelligent manufacturing base of high-performance MEMS microphones in Malaysia has been put into production to further improve the global capacity layout.
Profit forecast and investment rating: next year, the global economic recovery will improve to a certain extent, or it will lead to a pick-up in mobile phone consumption, and the company's car acoustics and other related businesses will gradually increase. At the same time, based on the company's results in the first three quarters, we estimate that the company's revenue in 2022-2024 will be 189.15pm 206.8622,924 million yuan, and the corresponding net profit will be 621pm 9.15pm 1.358 billion yuan. The corresponding dilution EPS is 0.52, 0.76 and 1.13 yuan respectively, and the E multiple of the dilution is 32X/21X/14X. Considering that the company will have greater performance flexibility after the recovery of mobile phone consumption, and the loss of the optical business is expected to improve, we upgrade the company's rating to "buy".
Risk tips: increased competition in the industry, lower-than-expected progress in optical business profitability optimization; geopolitical conflicts, resulting in supply chain disruption; technological leapfrogging and substitution, subverting the company's existing technological advantages; and the impact of the epidemic, dragging down the global economic recovery.