Events:
The company released the financial report of the third quarter of 2023: in the first three quarters of 2023, the company realized revenue of RMB 3.549 billion yuan (year-on-year +10.87%), net profit attributable to parent company of RMB 438 million yuan (year-on-year--8.81%), net profit deducted from non-parent company of RMB 365 million yuan (year-on-year--13.51%), gross profit rate of 27.00%(year-on-year--0.03pct) and net interest rate of 12.71%(year-on-year--2.87pct).
The company realized operating income of 1.696 billion yuan in 2023Q3 (Year-on-year +28.75%, month-on-month +73.57%), net profit attributable to parent 260 million yuan (Year-on-year +10.97%, month-on-month +207.67%), net profit of RMB 255 million (year-on-year +10.61%, month-on-month +431.25%), gross profit margin of 28.57%(year-on-year-2.14pct, month-on-month +1.95pct), net interest rate of 15.60%(year-on-year-2.7pct, month-on-month +6.28pct).
Comments:
Benefiting from the volume of new products from large customers and the continuous growth of automotive electronics and other businesses, the company's 23Q3 performance increased significantly. Apple's latest iPhone 15 PRO MAX introduces periscope lens for the first time. With the rapid start-up of microprism business and the improvement of yield rate, it is expected to contribute to the performance increment in the future; the launch of new phones by major domestic customers in Q3 also thickens the company's performance. In terms of automotive electronics business, 23H1 successfully won the AR-HUD and W-HUD projects of Jaguar Land Rover EMA platform, becoming the first HUD tier1 supplier to enter overseas head vehicle factory in China, realizing overseas breakthrough. As a core supplier, the company benefited significantly from the launch of new models such as Chang 'an Deep Blue S7, further promoting performance growth.
Film panels are growing rapidly, so it is suggested to continue to pay attention to the development of microprism, automotive electronics and other businesses. In 2022, the company's thin film optical panel business realized revenue of 1.57 billion yuan (year-on-year +64.52%), accounting for 35.88%(year-on-year +10.83pct). The thin film optical panel business has rapidly developed into the second largest business of the Company, and its profitability has been significantly improved.
Supported by its mobile phone business, the Company actively explored product applications in non-mobile phone fields such as smart home and game office, and continued to expand its scale in projects such as drones, floor sweeping robots and sports cameras to maintain a high market share.
Looking forward to 24 years, the standard periscope lens model of large customers is expected to sink + the shipment volume of fixed-point models continues to grow and the automobile electronics business development brought by the shipment of new fixed-point models, the company is expected to benefit deeply.
Maintain the "Buy" rating: Considering the pressure on the company's 23H1 performance, we lowered the company's 23-24 net profit forecast to 6.1/790 million yuan (13.6%/2.6%), maintaining the company's 25-year net profit forecast of 910 million yuan, corresponding to the current PE valuation of 29X/22X/19X. The company's microprism business contributed new performance growth points, and the automotive electronics business continued to develop. We are optimistic about the company's long-term growth potential in optical track and maintain the "Buy" rating.
Risk warning: downstream demand is less than expected risk, new product development progress is less than expected risk, customer introduction progress is less than expected risk.