Q3's profits are growing steadily and its business scope is constantly expanding. In the first three quarters, the company achieved operating income of 1.969 billion yuan, an increase of 7.8% over the same period last year, and a net profit of 151 million yuan, up 11.24% over the same period last year. Q3 achieved a total operating income of 968 million yuan in a single quarter, an increase of 14.61% over the same period last year, and a net profit of 122 million yuan, an increase of 9.34% over the same period last year.
With the increasing maturity of the company's MIM technology application, while developing product categories in the field of consumer electronics such as smart phones and wearable devices, it will deepen the expansion of smart home and other areas, and actively promote the strategic layout of smart terminal business to further expand the company's business to the downstream industrial chain. In addition, the company will further accelerate the development of transmission and heat dissipation plate business, and cooperate with precision plastic business to continuously expand the scope of business.
Multi-brand folding screen is ready to overlay the price, and the heat of the folding screen will rise again. According to DSCC data, global shipments of folding screen phones are 7.98 million in 2021, an increase of 254% over the same period last year. It is estimated that 17.77 million folding screen phones will be shipped in 2022 and 54.68 million in 2026. With the entry of a number of domestic manufacturers, the number of new models has also increased significantly. This year, Samsung and Huawei have also released new folding screen phones, with a broad market for folding screens. The folding screen rotating shaft is the most important mechanism of the folding screen mobile phone, which is composed of hundreds of parts, of which the most important part is the MIM part, and the manufacturing process is complex. At present, the price of folding screen terminals is mostly reduced to less than 10, 000 yuan, and sales are expected to exceed expectations, thus driving the rapid growth of the MIM industry.
Antexin's profitability has improved, giving full play to the synergy of various businesses. The company completed the acquisition of 60% of its subsidiary Antexin in March 2021, and completed the acquisition of 100% of its subsidiary Ruidian Precision in early 2022, laying out and expanding the consumer electronics terminal products business and precision plastics business. The company continues to send managers to Antexin to strengthen the transmission of scale management experience and continue to promote the integration of the company. The business of Ruidian is progressing smoothly, giving full play to the cooperation of MIM business, precision plastic business, transmission business and heat dissipation business in the overall components, so as to improve the added value of the company's products and enhance the competitiveness of the company.
The transmission and heat dissipation division is widely used to create precision manufacturing platform enterprises. The company will further accelerate the development of transmission and heat dissipation plate business, and has successfully provided batch precision transmission mechanism products as well as heat pipe, VC and other heat dissipation products to customers in smart phones, smart headphones, smart home appliances and other fields. In the future, with the rapid growth of folding screen mobile phones and the wide application of transmission mechanisms such as precision motor gearbox modules in smart homes, smart home appliances and other fields, the company will vigorously tap the relevant market demand. continue to improve the profitability of the transmission sector.
Profit Forecast and Investment suggestion: we expect the company to achieve operating income of 28.85,36.06 / 4.544 billion yuan in 2022-2024, an increase of 20.0%, 25.0%, 26.0%, 2.82, 3.74, and 484 million yuan, respectively, and an increase of 53.5%, 32.4%, 29.5%, and the PE corresponding to the stock price is 20.1, 15.2 / 11.7x. Maintain a "buy" rating.
Risk hint: the downstream demand of the industry is not up to expectation, and the progress of process promotion is not up to expectation.