Summary of events: on October 26, 23, the company released the third quarterly report of 23Q3. In the third quarter of 23, the company realized revenue of 1.441 billion yuan, + 10.20% compared with the same period last year, and net profit of 126 million yuan, + 67.95% of the same period last year.

23Q3 performance high growth, profitability continued to repair. 23Q3 achieved revenue of 543 million yuan, + 21.79% year-on-year, and net profit of 42.875 million yuan, + 96.48% compared with the same period last year. The performance has achieved high growth, mainly as follows: 1. Revenue: 1) Export: benefiting from the repair catalysis of overseas car sales (take the US market as an example, the total US car sales reached 11.6995 million from January to September, compared with the same period last year, + 13.7%). The gradual recovery of orders issued by customers of the company's export products has contributed to the steady growth of overseas revenue. Q3 export business revenue increased significantly, more than 30% year-on-year growth 2) domestic sales: the company accelerated the layout of the front installation business, the front engine factory supporting business, including personalized exterior decoration business, intelligent cockpit business and other sectors have varying degrees of growth over the same period last year. At the same time, the company's wholly-owned subsidiary Weijie Automobile continued to maintain a rapid growth trend, Q3 domestic sales business revenue increased by more than 30% over the same period last year. 2. Profitability: the gross profit / net profit rate of the company in the third quarter of 2023 was 32.24% / 7.89% respectively, which was + 3.81Pcts/+3.00Pcts compared with the same period last year, mainly due to the favorable impact of raw materials, sea freight and other factors on the cost end, resulting in varying degrees of improvement and improvement in the gross profit margin of the company's domestic and export business, among which the gross profit margin of export business increased significantly. 3. Period expenses: the company's Q3 four-fee expense rate in 2023 was 21.33%, which was + 7.9Pcts compared with the same period last year, in which the sales / management / R & D / financial expense rate was 6.99%, 9.43%, 4.41%, 0.50%, respectively, compared with the same period last year, and + 0.51Pcts/-0.23Pcts/-1.19Pcts/+8.82Pcts, respectively. Among them, the fluctuation of the financial expense rate was mainly due to the fluctuation of the exchange rate between the US dollar and RMB.

The intelligent cockpit accelerates the landing, which helps the company to realize the medium-and long-term development strategy of "one body and two wings". The global layout of the refitting market, domestic and overseas simultaneous development, the company base is stable. 1) overseas afterloading market: the company continues to open up new markets, new customers, and vigorously develop independent channels, with remarkable results in North America, the Middle East, Western Europe and other countries and regions. At the same time, the company vigorously promotes the expansion of overseas electric intelligent products, electric pedals, rear pedals and drawer systems of pick-up trucks, vehicle-mounted general side tents, electric winches, portable energy storage and other categories are progressing smoothly, and the new products are about to enter the release period. increase overseas revenue. 2) domestic afterloading market: stabilize the scale of traditional business channels, try our best to expand new channels, and revenue goes up steadily. The intelligent cockpit accelerates the landing, Vijay automobile strategy coordinated layout of automobile exterior decoration, and the front equipment market thickens its performance. 1) Intelligent cockpit field: since the beginning of the year, the company has added about 5 designated projects, including 2 electric side door projects and 3 electric tail door projects. Electric side doors, electric tail doors, electric pedals, electric scissors doors and other products have now entered GAC Eian, polar krypton, Changan, BYD, SAIC, Lutes and other mainframe plants, along with the project landing, intelligent cockpit business is expected to contribute core performance flexibility. 2) Weijie automobile exterior decoration field: Vijie automobile core products include luggage rack, pedal, spare tire cover, anti-roll frame, front / rear guard plate, exhaust tail cover, tail wing and so on. Its downstream customers include Great Wall, GAC Ean, Changan, BYD, SAIC GM, Nissan, Chery, NIO Inc., XPeng Inc. and many other high-quality car companies. More than 16 new bid-winning projects have been added so far this year, of which 14 projects have been established. As the project gradually enters mass production, the performance continues to grow at a high level.

Investment suggestion: we expect the company to achieve a return net profit of 1.74 million yuan in 2023-2025, and the current market capitalization corresponding to 2023-2025 PE is twice as much as that in 33-23-16. The company is the domestic leader in the automotive aftermarket modification industry, accelerating the release of intelligent cockpit products and maintaining the "recommended" rating.

Risk hint: sales of new energy are lower than expected; higher-than-expected raw material costs lead to low gross margin expectations.