Investment suggestion: considering that wind power installation is not as expected in the first half of 2023, wind power bidding remains high, downstream delivery pressure appears, wind power delivery is optimistic about a high increase in 2024; in addition, the demand for new energy vehicles remains high, and the company's product penetration increases, raising the company's 2023-25 EPS to 0.79Universe 1.30 yuan (formerly 0.73 million 1.00 / 1.27 yuan), maintaining the company's target price of 26.11 yuan and increasing its holdings.
The company's performance is in line with expectations. In the first three quarters of the announcement, the company achieved revenue of 819 million yuan / + 2.23%, net profit of 179 million yuan / + 36.79%, and non-return net profit of 162 million yuan / + 55.54%. In the third quarter, the revenue was 284 million yuan / year-on-year + 4.59% / month-on-month + 2.7%, the return net profit was 60 million yuan / year-on-year + 13.81% / month-on-month-9.99%; deducted non-return net profit of 56 million yuan / year-on-year + 29.1% / month-on-month-3.05%.
Benefiting from the low cost of raw materials, the company's profitability has improved significantly. In the first three quarters, the gross profit margin was 36.24%/+8.4pct and the net profit rate was 21.97%/+5.8pct. In the third quarter, the gross profit margin of 36.26%/+5.86pct/ was + 1.19%. The sales / management / R & D / financial expense rates for the first three quarters were 1.82%, 6.15%, 4.8%, 0.62%, respectively, compared with the same period last year-0.07/+0.32/+0.25/-0.23pct. The high return net profit is mainly due to: 1) the product structure of the company improved and the products with high gross margin increased during the reporting period; 2) the prices of major raw materials decreased and remained stable, and the price adjustment mechanism was implemented smoothly.
The market of self-lubricating bearing automobile is expanding rapidly, and the wind power market is expected to expand in 24 years. At present, 100 self-lubricating bearings are needed for each new energy vehicle and are growing. It is expected that the company's self-lubricating bearings will grow by about 30% in the field of new energy vehicles in 2023. At the same time, the application of self-lubrication technology in non-bearing fields such as air-conditioning compressors and plastic structures is also increasing. The trend of wind power is determined by sliding instead of rolling. We estimate that the potential market space for sliding bearings in wind power gearboxes is more than 10 billion yuan, and it is estimated that the market space for sliding bearings in wind power gearboxes will exceed 2 billion in 2025. At present, the company has established a stable cooperative relationship with wind power customers by virtue of its strong ability of independent innovation and market competitiveness. with the emergence of the inflection point in the wind power industry, the company's performance is expected to benefit from the high wind power boom in 2024.
Risk hint: the production and marketing of new energy vehicles and wind power installation are not as expected, and the progress of fund-raising is not as expected.