Event: the company releases three quarterly reports in 2023
The performance slightly exceeded expectations, and the gross profit margin continued to improve: from January to September 2023, the company achieved revenue of 3.55 billion yuan, an increase of 10.9% over the same period last year, a net profit of 440 million yuan, a decrease of 8.8% over the same period last year, and a decrease of 13.5% over the same period last year. Of this total, the revenue in the third quarter was 1.7 billion yuan, an increase of 18.8 percent over the same period last year, and the net profit returned to the mother was 260 million yuan, an increase of 11 percent over the same period last year, deducting 260 million yuan in non-return net profit, an increase of 10.6 percent over the same period last year. 23Q3 single-quarter revenue and net profit have increased steadily; Q2 revenue pressure, Q3 single-quarter performance rose against the trend, slightly higher than expected, the enhancement of its performance mainly comes from the improvement of the proportion of products with technical advantages and the optimization of product structure, especially in the thin film optical panel business and automotive electronics business. From the cost point of view, 2023Q3 invested 290 million yuan in R & D, an increase of 20.1% over the same period last year, and R & D expenses accounted for 11.1%. In the first half of the year, the company invested a lot of money in R & D of prism and other special projects to keep up with the high standards of end customers. On the profit side, Q3's gross profit margin is 28.6%, a month-on-month increase of 7.3pct, and the company's gross margin is expected to be steadily repaired.
Continue to open up new markets and new products, and fully develop the momentum of growth: 1) in the market, the company deepens the business of major customers in North America and South Korea, constantly increasing its market share and promoting the research and development of new categories, so that its overall technical capability and comprehensive management level can be recognized. 2) in terms of products, the company has set up a Micro / Nano Research Institute, which is engaged in the development of nano-imprint technology and semiconductor optics-related products, and the related division of the company is engaged in mass production of semiconductor optical products, which are mainly used in mobile smart terminals such as mobile phones, cars and AR/VR terminals for 3D shooting, biometric and sensing fields. 3) in terms of production, the company continues to promote the construction of Golden Line 2.0 and automation transformation to enhance lean production capacity.
AR/VR has a comprehensive layout, closely following the mainstream demand and technology direction: the company has set up a project team for AR/VR business to focus on the technical path of reflected and diffracted optical waveguides and put resources into layout. 1) Automotive electronics: Crystal Optoelectronics continues to develop product applications around intelligent driving and intelligent cockpit, becoming an important participant in the field of automotive intelligence, and the automobile will become an important part of the company's future performance growth. The company successfully won all the AR-HUD projects of Jaguar Land Rover EMA platform, becoming the first domestic HUD tier1 supplier to enter an overseas head vehicle factory; 2) 3D scene: future humanoid robots, 3D photography and other AR related products can bring greater growth for the company.
Profit forecast and investment rating: we are optimistic that the company's new business will grow steadily, its profitability will continue to repair, and its profit forecast will be raised. It is estimated that the company's 2023-2025 net profit will be 6.1x8x8x980m (the previous value is 5.8x77x980m). The current market capitalization corresponds to PE times that of 24-18-15, respectively, maintaining the "buy" rating.
Risk hint: exchange rate risk, new product development schedule is less than expected risk, market competition is fierce