The company released the third quarterly report of 2023: 2023Q1-Q3 realized income of 819 million yuan, an increase of 2.23% over the same period last year, a net profit of 179 million yuan, an increase of 36.79%, and a net profit of 162 million yuan, an increase of 55.54% over the same period last year. 2023Q3 realized an income of 284 million yuan, an increase of 4.59% over the same period last year, a net profit of 60 million yuan, an increase of 13.81% over the same period last year, and a net profit of 56 million yuan, an increase of 29.10% over the same period last year.

The company's revenue scale is growing steadily, and the potential growth momentum is full. With the support of the policy of steady domestic growth, the company's construction machinery business is expected to recover gradually. at the same time, with the landing of the new automotive business and the verification of wind power self-lubricating bearings, the company has full potential growth momentum.

The gross profit margin has been further increased and the expenses have been well controlled. 2023Q3's gross profit margin is 36.26%, which is 5.86pct higher than 2022Q3. In terms of expenses, 2023Q3, the company's sales expense rate / management expense rate / R & D expense rate are 1.26%\ 5.80%\ 5.16% respectively, which is relatively stable compared with 2023Q2, and the overall cost control of the company is good. We believe that in the future, with the increase in the proportion of high gross profit margin income such as cars and wind power, the company's profitability is expected to further improve.

Humanoid robots accelerate their landing and are optimistic about the growth potential of the company's screw business. We believe that with the accelerated landing of humanoid robots, the potential market space of ball screws and planetary roller screws is expected to gradually open, and we are optimistic about the expansion of the company's screw business in the field of humanoid robots.

Profit forecast: we expect the company's return net profit from 2023 to 2025 to be 2.39,3.18 and 382 million yuan respectively, an increase of 134%, 33% and 20% over the same period last year. The market capitalization as of October 24 corresponds to a PE of 20 and 15 times for 23-24 years.

Risk factors: macroeconomic cyclical fluctuations, industrial policy adjustment, the risk of rising prices of raw materials, and so on.