In 23 years, Q3 returned to its mother with a net profit of + 9% and 18% compared with the previous year, and maintained its "overweight" rating. Real Madrid Technology released three quarterly reports, with revenue of 1.41 billion yuan (yoy-18%) in the first three quarters of 2023, net profit of 240 million yuan (yoy-38%) and deduction of 210 million yuan (yoy-23%) from non-net profit. Among them, Q3 realized revenue of 510 million yuan (yoy+4%,qoq+9%) and net profit of 80 million yuan (yoy+3%,qoq+18%). We estimate that the 23-25 net profit of homing is 4.01 million yuan for 471 and 601 million yuan, and the corresponding EPS is 0.68 and 0.80 yuan, respectively. Comparable company's 24-year Wind unanimously expects the average PE to be 15 times, giving the company 15 times PE in 24 years, with a target price of 12.00 yuan, maintaining the "overweight" rating.
The product structure has been continuously optimized and the profitability of Q3 has rebounded.
The company continues to optimize the product structure, actively develop wet electronic chemicals, new energy glue resin and other small varieties of fields, the business situation is stable and improving. The sales volume of small variety / large variety of 23Q3 company is 374ppm, respectively, and the year-on-year change is + 35% CPM 89%. The average sales price is 13372max 7075 yuan / ton, respectively, and the year-on-year change is-7%. Revenue achieved RMB0.09 million, year-on-year change + 26% CPUE 90%, and the proportion of small variety income increased to 98%. In the first three quarters of 23, the prices of propylene oxide / ethylene oxide, the main raw materials, were 8618amp 5605 yuan / ton, respectively, a year-on-year change of-9% mer 14%. The company achieved a gross profit margin of 26% in the third quarter, with a month-on-month change of + 6/+4pct. The company's Q3 sales / management / R & D / financial expense rates are 0.44%, 2.70%, 3.79%, 0.03%, respectively, with year-on-year changes-0.11/-0.08/-0.73/+1.94pct.
The decline in raw materials continues, and projects under construction are expected to contribute to the increase.
According to Baichuan Yingfu, as of October 26, 23, the average price of propylene oxide in eastern China was 9275 yuan / ton, down 3% from the average price at the beginning of the quarter. Raw materials continue to decline, and the cost side is expected to continue to reduce pressure. According to the semi-annual report, the company is under construction for many projects, including an annual output of 9000 tons of polyetheramine technical renovation project, an annual output of 6000 tons of polyetheramine new material technical renovation area project, a new supporting class C tank, etc., the company's annual output of 30,000 tons of high-end surface function new materials project is expected to be put into production, which is expected to further enhance the company's profitability. In addition, the company has increased its investment in the polyimide technical renovation project with an annual output of 200 tons and the construction project of Real Madrid Science and Technology headquarters. According to three quarterly reports, projects under construction totaled 355 million yuan at the end of the third quarter of 23, and the successive commissioning of projects under construction is expected to increase the company's profits.
Risk hint: the risk of a continuous downturn in downstream demand, and the risk that the production schedule of the new project is not as expected.