Events:

According to the third quarter report of 2023, the company achieved 746 million yuan in revenue in the first three quarters of 2023, + 18.5% year on year, 109 million yuan in net profit, + 28.3% in the same period last year, 106 million yuan in net profit deducted from non-return, + 29.6% in the same period last year, including 286 million yuan in revenue in 2023Q3, + 18.9% in the same period last year, and 47 million yuan in net profit, + 43.2% in the same period last year. The net profit after deducting non-return is 45 million yuan, which is + 40.8% compared with the same period last year.

Revenue side: 23Q3 revenue of 286 million yuan, respectively + 18.9% compared with the same month-on-month 12.55%. 23Q3 achieved revenue of 286 million yuan, + 18.9% year-on-year and + 12.55% month-on-month. The month-on-month growth was mainly due to the continuous growth of downstream customer sales in the third quarter, which was caused by the traditional peak season of cars.

Gross profit margin: 23Q3 gross margin 25.43%, year-on-year + 2.22pct, month-on-month-0.94pct. 23Q3's gross profit margin rose year-on-year and fell slightly month-on-month.

Profit end: 23Q3 homing net profit of 47 million yuan, year-on-year + 43.17%, month-on-month + 21.82%.

23Q3's homing net profit is higher than the previous month, and the growth rate is faster than the revenue growth rate. The year-on-year increase is mainly due to the increase in gross profit margin and other income; the high increase is mainly due to the good cost control during the 23Q3 period, and the expense rate during the 23Q3 period is 7.98%, month-on-month-1.18pct.

Car peak season off-end business is expected to benefit, non-car-end business to create a second growth curve. 1) New energy vehicles. The company has actively laid out the field of new energy vehicles, and has established long-term and stable cooperative relations with BYD, Guangzhou Automobile, Ian, Cyrus, Geely New Energy, Li Auto Inc. and other new energy vehicle manufacturers. The fourth quarter is the traditional peak season in the automobile industry. With the hot sale of popular new energy models, the new energy vehicle business will continue to contribute significantly to the company. 2) Energy storage & the field of big data supercalculation. The company makes use of the technical advantages such as the formula in the automotive pipeline system to expand the development of non-end products and customers. In the field of energy storage, it has established business negotiations or cooperation with more than 40 energy storage customers, such as G customers, B customers, Q customers, and achieved batch supply. In the field of big data supercomputing, the cooling system pipeline products used by a big data server company have been successfully developed and verified by No. 1 customer, and the non-vehicle business is expected to become the company's second growth curve in the future.

Investment advice and profit forecast: the company's operating income from 2023 to 2025 is estimated to be 11.55,16.8 and 2.013 billion yuan respectively, and the net profit returned to its mother is 1.63,2.44 and 302 million yuan respectively. Corresponding to the current market capitalization, PE is 22,15 and 12 times respectively. Maintain the "overweight" rating.

Risk tips: the risk of macroeconomic fluctuations, the sharp rise in raw material prices, the lower-than-expected sales of new energy vehicles, the lower-than-expected launch of new capacity, the continuation of chip shortage, and the progress of new product research and development.