Event: the company released its three-quarter report in 2023, with revenue of 269 million yuan in the first three quarters, + 12.53% year-on-year, net profit of-52 million yuan, deducting non-net profit of-65 million yuan, basically the same as the same period last year, with a gross profit margin of 29.82% and a year-on-year + 1.36pct. 23Q3 achieved revenue of 98 million yuan in a single quarter, year-on-year + 43.24% / month-on-month + 2.16%, net profit of-9 million yuan, loss of 12.9 million yuan less than last year, deduction of non-net profit of-13 million yuan, loss of 1.101 million yuan, gross profit of 37.20%, year-on-year + 3.27pct/ + 12.15pct.
The results of loss reduction are remarkable, and the progress of high-end materials is smooth: the company's 23Q3 revenue grows rapidly in the single quarter, the gross profit margin is improved in varying degrees, and the loss is greatly narrowed compared with the month-on-month ratio, mainly due to: 1) the significant increase in the shielding film compared with the month-on-month ratio, the significant increase in the high-end USB series products, and the optimization of the product structure. 2) Electronic copper foil has taken a series of measures, including adjusting the internal structure of the product, controlling the quantity and raising the price, improving the product yield and reducing the cost, and the loss has been reduced. 3) further progress has been made in peelable copper customer certification and further sample orders have been obtained.
The trend of multiple electronic materials is improving, waiting for the downstream space to open: 1) shielding film: the current company shielding film is widely used in mainstream mobile phone brands, and in the future, with the gradual recovery of terminal sales, it is expected to usher in demand recovery, superimposed new energy vehicle intelligence and other demand, the market space is expected to further open. 2) peelable copper: it is progressing smoothly, further progress has been made in customer certification during the quarter, and sample orders have been obtained. 3) other materials:
Part of the resistance film products have passed the relevant customer physical properties and process testing, batch stability testing, terminal certification; conventional FCCL has implemented small orders in the first half of the year, very thin FCCL is still in the customer certification stage; PET copper foil has sent samples to some downstream customers.
Investment suggestion: as a platform company of high-end electronic materials, the company's short-term performance shows a positive trend. With the improvement of consumer electronics demand and the mass shipment of high-end new materials in the future, the overall profit is expected to be improved. We estimate that the company's 2023 / 2024 / 2025 net profit will be-0.59, 0.55, 1.23 million, and EPS will be-0.73, 0.68, 1.53 per share, corresponding to a multiple of-/ 76.76, 34.34 per share, maintaining the "overweight" rating.
Risk tips: the risk of further decline in demand for shielding film; the risk that the industrialization of high-end materials such as peelable copper is less than expected; the risk of rising raw material prices.