Events:
The company released its three-quarter report on October 19, 2023, and its operating income in the first three quarters was 725 million yuan, 9.77% of the same period last year. The return net profit was 264 million yuan, an increase of 6.83% over the same period last year, and the basic earnings per share was 1.52 yuan.
Quarterly profits are growing rapidly and inventory levels remain stable.
The company's 2023Q3 revenue in a single quarter was 234 million yuan, 7.40% compared with the same period last year; the net profit was 69 million yuan, 29.11% year-on-year; after deducting the impact of share payment, the profit in a single quarter was 87 million yuan, 61.61% compared with the same period last year. The company reported that the ending inventory was 1.88 billion yuan, an increase of 65.12% over the same period last year, a higher increase, but a decrease of 0.24% from 1.885 billion yuan in mid-2023, indicating that the inventory level remained stable in a single quarter and did not continue to rise.
Issue equity incentives to stimulate team vitality
After issuing the 2022 equity incentive plan in September 2022, the company issued the 2023 equity incentive plan in September 2023. In 2023, compared with 2022, the number of incentive shares increased from 3.6 million to 8.5 million, and the incentive range increased from 101 to 162. the award price was 34.56 yuan per share in 2022 and 35.63 yuan per share in 2023, which is basically the same. The introduction of equity incentives and the increase in the number of incentives are of great significance for the company to enhance team vitality and long-term development in the future.
Earnings forecast, valuation and rating
We estimate that the company's operating income for 2023-2025 will be 11.60 million yuan, 13.92 billion yuan, respectively, with a corresponding growth rate of 34.86 percent, 19.94 percent, 19.95 percent, 4.40 yuan and 528 million yuan, respectively, and 31.99 percent, 20.13 percent, 20.02 percent, respectively, and the 3-year CAGR will be 23.92 percent. With reference to comparable companies, the company will be given 30 times PE in 2024, with a target market capitalization of 13.187 billion yuan and a corresponding share price of 75.68 yuan, maintaining a "buy" rating.
Risk Tips:
The industry is below the expected risk; the product category is single; the order delivery is not as expected.