The event company issued a three-quarter report in 2023. In the first three quarters, the company achieved revenue of 1.127 billion yuan, an increase of 13.51% over the same period last year, a net profit of 172 million yuan, an increase of 15.14%, and a net profit of 171 million yuan, an increase of 19.84% over the same period last year.
Q3 revenue and return net profit have achieved rapid growth. Q3 achieved a revenue of 414 million yuan, an increase of 47.62% over the same period last year, and a net profit of 72 million yuan, an increase of 79.38% over the same period last year. Revenue and net profit increased faster than that of 2022Q3. On a month-on-month basis, Q3's revenue and homing net profit increased by 2.22% and 4.35% respectively; gross profit margin was 40.20%, up 14.95pct and 6.4pct compared with the same period last year. Since the beginning of the year, the downstream demand of the company's products has been repaired continuously; the operating rate has gradually increased, and the paper carrier rate of the main products is more than 70%, helping the company's gross profit margin to rise again.
The prosperity of the electronic information industry continues to recover, and the demand for thin carriers recovers. The company's products include paper tape, adhesive tape, plastic tape, release film and other products, mainly used in integrated circuits, chip electronic components and other electronic information fields. Taking chip electronic components MLCC as an example, TrendForce Jibang Information said that the average monthly BB Ratio (order-to-shipment ratio) of MLCC suppliers rebounded from 0.84 in April this year to 0.91 in early July, and total shipments gradually climbed from 345 billion in March to 389 billion in June, an increase of 12.75%.
Looking forward to next year, the consumer electronics industry, represented by smartphones, is expected to usher in a recovery, supporting the growth of demand for thin carriers.
Release membrane products are carried out in an orderly manner in the verification of major customers. Release membrane is a new product that the company began mass production in 2018. At present, the company's MLCC release membrane has achieved a stable batch supply to Guoju, Huaxinke, Fenghua Hi-Tech, Sanhuan Group and other major customers, and some breakthroughs have been made in the verification of high-specification products in the client, and the verification and small batch trials of major Korean and Japanese customers are also being carried out in an orderly manner as planned. There has been a steady increase in shipments of high-end release membrane products in the import substitution category for other uses of the polarizer process. Detached membrane products are expected to become a new performance growth point of the company in the future.
Acquire a 3.17% stake in Martin Corey to optimize the industrial layout. The company plans to use its own capital of 20 million yuan to acquire 3.1746% of Martin Cori held by controlling shareholder Zhejiang Yuanlong. Martin Corey's main business is closed testing field equipment research and development, production, sales and provision of semiconductor chip CP/FT testing integration services. Its customers are semiconductor closed test factories, which overlap with the company's plastic tape products customers. This transaction is the company's active exploration of the coordinated development of the industrial chain and the cultivation of new profit growth points; the investment will optimize the company's industrial layout and gradually form a high-quality enterprise with multi-point support, multi-industry and diversified development around the semiconductor industry; the two sides cooperate with each other to increase the market share of domestic brands and solve the bottleneck problem of packaging technology.
From 2023 to 2025, it is expected that the company will achieve revenue of 1.630 million yuan, 2.109 billion yuan, an increase of 25.27%, 29.39%, 25.53%, and a net profit of 2.54, 359, and 432 million, respectively, an increase of 53.17%, 41.33%, 20.35% and 1.00 yuan per EPS, respectively, and the corresponding share price PE before that, 1.00 times that of 44-31-26. Maintain the recommended rating.
The risk indicates that the recovery of downstream demand is not as expected and the production of new capacity is not as expected.