Announcement: in the first three quarters of 2023, the company achieved revenue of 1.13 billion yuan, an increase of 13.5% over the same period last year, a net profit of 172 million yuan, an increase of 15.1% over the same period last year, and 171 million yuan of non-net profit, an increase of 19.8% over the same period last year. 3Q23 achieved an income of 414 million yuan, an increase of 47.6% over the same period last year, and a net profit of 72 million yuan, an increase of 79.4% over the same period last year. Performance is in line with market expectations.
3Q23's revenue and return net profit increased higher than the same period last year, and the gross profit margin improved better than expected. 1) in terms of revenue, 3Q23 achieved a revenue of 414 million yuan, an increase of 47.6% over the same period last year and 2.29% from the previous year; the net profit from its parent was 72 million yuan, up 79.4% from the same period last year and 4.84% from the previous year. 2) the gross profit margin continues to rise month-on-month. 4Q22 gross profit margin fixed to 26.94%, month-on-month increase of 1.69pcttransfer1Q23 gross profit margin to 32.41%, month-on-month increase of 5.47pctash 2Q23 gross profit margin to 33.80%, month-on-month increase of 1.39pctscape 3Q23 gross profit margin to 40.2%, month-on-month increase of 6.4pct, mainly due to the decline in raw material prices and the repair of farming rate.
The overseas layout of the company's paper carrier continues to advance. 1) according to the company announcement, the company has set up a factory in Malaysia and set up a wholly-owned subsidiary in the Philippines in July 23 to better serve strategic customers such as Murata, Samsung, Sun luring Power, etc., which is expected to continue to promote the company's global share. 2) comply with the trend of miniaturization of electronic components, continue to optimize product structure, continue to increase special equipment for high-precision perforated paper tape, and increase the production and sales of high value-added products such as perforated paper tape and perforated paper tape; the company's fifth electronic special base paper production line has entered the equipment installation stage, and 4Q23 is expected to start trial production.
Shipments of high-end plastic belts have increased steadily. According to the announcement, the company has added precision small-size production equipment, increased production capacity; new roller production line, as of 1H23 has all kinds of plastic belt production line 80 +.
The release membrane verifies the orderly advance. 1) sign a strategic cooperation agreement with major international customers, sign a strategic agreement with Samsung at the end of 2021, and establish a strategic partnership with Murata at the end of 2022. 2) the sample delivery of the release membrane of the base membrane made by the company is smooth, and the quantity of 2H23 is expected to increase gradually. At present, release membrane products have been supplied to Guoju, Fenghua and other customers.
Maintain earnings forecasts and maintain "buy" ratings. We are optimistic about the domestic substitution potential of the company in the release membrane and other new business, and maintain the original forecast of 23-25 net profit of 2.6,3.7 and 490 million yuan, while the current stock price corresponds to the PE of 45,31,23x respectively in 23-25, maintaining the "buy" rating.
Risk hints: the release of detached membrane base membrane is not as expected, the recovery of MLCC demand is not as expected, the risk of price increase of raw materials, etc.