Event: the company released its third quarterly report 2023 on October 19, 2023. Revenue in the first three quarters of 2023 reached 725 million yuan, an increase of 9.77 percent over the same period last year. The net profit returned to the mother was 264 million yuan, an increase of 6.83% over the same period last year.
Main points of investment
The product structure is continuously optimized and the profitability is enhanced: the company released the third quarter report of 2023.
Revenue reached 725 million yuan in the third quarter of 2023, an increase of 9.77% over the same period last year, mainly due to the expansion of production capacity and the gradual increase in the scale of product delivery and acceptance. The net profit was 264 million yuan, an increase of 6.83% over the same period last year. As of September 2023, the company's R & D expenditure was 45 million yuan, an increase of 65.23% over the same period in 2022, mainly due to the increase in R & D investment and share payment. The net cash flow generated by operating activities reached 318 million yuan as of September 2023, an increase of 1.85% over the same period last year.
The company has eye-catching financial data and good operating conditions, which lays a solid foundation for subsequent production capacity improvement and market development.
The production work is carried out in an orderly manner, and the scale of operation is constantly expanding: by the end of September 2023, the company is under construction of 26 million yuan, an increase compared with 23 million yuan at the beginning of the year. At the same time, the company is developing a number of products in cooperation with several overall units, and the related products are in different stages, such as scheme, initial sample, sample, stereotyped batch production and so on. The company started from the R & D stage and maintained a close cooperative relationship with customers at the initial stage of equipment development. there is a strong upstream and downstream synergy in equipment development, technology upgrading, improvement and spare parts procurement. At present, the company is in good operating condition, project research and development, production capacity expansion, supply chain guarantee and other work are carried out in a planned and orderly manner to speed up the production delivery work in 2023.
Millimeter wave micro-system field leader, high industry recognition: the company focuses on millimeter wave micro-system research and development, manufacturing, testing and sales, the main products can be widely used in radar detection, communication data link and other special fields. Since its inception, the company has always focused on the field of millimeter wave microsystems. after more than a decade of continuous investment and technical research, combined with a deep understanding of the technological development trend in related application fields, the company has formed a strong first-mover advantage. at present, it is one of the few domestic enterprises that can provide overall solutions and product manufacturing services for millimeter wave microsystems, and plays an important role in the great-leap-forward development of information equipment in China. The company's products have good performance, stable operation in various application fields, high reliability and security, and have been highly recognized by customers.
Profit forecast and investment rating: the company's performance is in line with expectations. Based on the broad prospects of downstream applications and the company's leading position in TR components, we maintain the company's homing net profit forecast for 2023-2025, which is RMB 354 million RMB 4231,581 million respectively, corresponding to PE times that of 28-24-17, and maintains the "overweight" rating.
Risk tips: 1) the risk of high customer concentration; 2) macro environmental risk; 3) market competition aggravates the risk.