Event: the company released the third quarterly report of 2023, 23Q1-3 realized revenue of 1.751 billion yuan, year-on-year-34.22%, net profit of 535 million yuan, year-on-year-35.65%, deducted non-net profit of 493 million yuan, year-on-year-44.47% Among them, 23Q3 achieved revenue of 574 million yuan, same / month ratio-29.4% Maqure 3.8%, net profit 160 million yuan, same / month ratio-35.4% Mather 27.4%, deduction of non-net profit 141 million yuan, same / month ratio-51.4% gamble 31.9%.
Affected by the decline in the price of functional silane, profits are under pressure. The company's quantity increases and prices decrease, and the output of 23Q1-3 functional silane products is 78200 tons, with a production and marketing rate of 100.4%, basically achieving full production and full sales. However, the price fell sharply. According to the company's operating data, the purchase price of 23Q1-3 raw materials anhydrous ethanol / metal silicon / allyl glycidyl ether / allyl glycidyl ether year-on-year-6.2% MP 21.7% Mab 52.8% MP 13.2%, of which Q3 quarter-on-quarter-0.1% Lue 9.8% Lue 3.5% /-10.8% The average sales price of 23Q1-3 functional silane products is 21800 yuan,-43.1% compared with the same period last year. It is estimated that the average sales price of 23Q3 is 19500 yuan, compared with-16.2%. Affected by this, the gross profit margin of 23Q3 is 33.47%, which is the same as that of-9.39/-3.08pct. Q3 net interest rate fell to 27.85%, same / month ratio-2.58/-9.08pct, deducting non-net interest rate dropped to 24.60%, same / month ratio-11.15/-10.17pct, in addition to gross profit margin, but also affected by changes in financial expense rate, 23Q3 financial expense rate is-1.93%, same / ring ratio + 4.53/+5.15pct.
Functional silane stopped falling and rebounded, with raw material prices providing support. According to Baichuan Yingfu data, the price of silane coupling agent has stopped falling and rebounded. As of October 20, the price of KH-550/KH-560/KH-570/A-171 in eastern China was 2.7pm, 3.8pm, 2.5k, 200,000 yuan, compared with + 12.5%, 26.7%, 4.2%, 11.1% in the previous quarter.
The new production capacity has been put into production step by step, and the pilot project of high purity quartz sand has been tested. The company has 60,000 tons of functional silane project under construction, has been gradually put into production, 23 years will add 15000 tons of distillation capacity. The project with an annual output of 2000 tons of high-purity quartz sand has completed the construction of roads and underground pipe networks, and is currently in the pilot stage, realizing the delivery of tonnage test products.
Investment advice: the price of the company's products has dropped more than expected, and we have lowered our 23-25 net profit from 23 to 714,820 PE to 1.028 billion yuan, compared with 14.9 won 13.0 shock 10.4x before that, but we are bullish on the company's development potential in the long run and maintain our "buy" rating.
Risk tips: capacity release is lower than expected, raw material prices fluctuate, and downstream demand is lower than expected.