The company reported slightly more than expected in the three quarters of 2023, and the competitiveness of its products was highlighted. The company released the third quarter report of 2023, the company achieved revenue of 282 million yuan in the first three quarters of 2023, year-on-year + 20.48pct; net profit of 124 million yuan, + 6.98pct; deduction of non-homing net profit of 83 million yuan, year-on-year-4.87pct. In a single quarter, the revenue was 103 million yuan, + 56.37 pct compared with the same period last year; the net profit was 41 million yuan, + 26.51 pct; the net profit was 30 million yuan, + 56.46 pct; the performance in the third quarter was slightly higher than expected, mainly due to the company's revenue growth through strengthening R & D investment, vigorously promoting technological innovation, constantly enhancing product competitive advantage, and continuing strategic layout and market expansion.
The overall cost control ability is proper, and the cash flow of business activities has improved significantly. During the first three quarters of 2023, the company's expense rate was 24.41%, of which the sales expense rate was 4.26%, year-on-year + 1.44pct; financial expense rate was-4.1%, year-on-year-0.53pct; R & D expense rate was 18.47%, year-on-year + 2.62pct; management expense rate was 5.79%, year-on-year + 0.27pct; mainly due to the company's continuous R & D and innovation of chip product technology. The company's gross profit margin in the first three quarters of 2023 was 53.35%, year-on-year-4.62pct, which we believe is mainly due to the intensification of competition and price war in the downstream home appliance industry. The net cash of the company's operating activities in the first three quarters of 2023 was 66 million yuan, an increase of 64 million yuan over the same period last year, mainly due to the increase in sales revenue resulting in an increase in sales receipts compared with the same period last year and a decrease in payments corresponding to the company's procurement plan.
BLDC motor accelerates infiltration, and the car + robot program opens the ceiling of company growth. Since its inception, the formula has focused on the research and development of high-performance motor drive control chips, effectively merging chip design, motor drive architecture and motor technology from the underlying architecture, and using the algorithm hardware technology path to achieve complex motor drive control algorithms at the chip architecture level to form a motor drive control processor core with independent intellectual property rights, which is not restricted by the ARM authorization system. Rely on the company's technical advantages and product performance advantages to achieve a wide range of products in home appliances, industrial control, power tools and cars. In addition, BLDC motor has obvious advantages in performance, so it can find opportunities to display its talents in robot applications and accelerate its penetration in the robot field, thus opening up the market space of BLDC driver and control chips.
Investment suggestion: in 2023-2025, we expect the company to achieve a revenue of 413,523,000,000 yuan, a net profit of 1.73pm, a net profit of 228,28,28,000,000, corresponding to a PE of 55.7, 42.3pm, 33.9x. In the long run, the company is expected to fully enjoy the leading valuation premium and maintain the "overweight" rating.
Risk tips: manufacturing production expansion is not as expected, industry competition is seriously intensified, macroeconomic fluctuation risk, R & D is less than expected risk, downstream customer certification is not as expected.