The company announced that revenue in the first three quarters was 813 million year-on-year + 4.20%, net profit from home was 128 million year-on-year + 24.94%, net profit from non-return to home was 86 million year-on-year + 3.13% + 3.13% from Q3, revenue from Q3 was 310 million year-on-year-0.64% month-on-month + 10.07%, net profit from home was 55 million year-on-year + 16.72% month-on-month + 24.67%, deducting non-home net profit 38 million-12.72% month-on-year + 23.33%. Our comments are as follows:
Q3 performance is basically in line with expectations, profitability continues to improve the trend. The company's revenue in the first three quarters was 813 million year-on-year + 4.20%, net profit from home was 128 million year-on-year + 24.94%, net profit from non-return was 86 million year-on-year + 3.13%, gross margin was 28.80% year-on-year + 0.13pct, net profit rate was 15.75% year-on-year + 2.61pcts, profitability continued to improve. Q3 single-quarter revenue 310 million year-on-year-0.64% month-on-month + 10.07%, homing net profit 55 million year-on-year + 16.72% month-on-month + 24.67%, deducting non-return net profit 38 million year-on-year-12.72% quarter-on-quarter non-recurrent 17.74 million (of which government subsidy is about 11.84 million), gross profit 30.04% year-on-year-0.29pct + 1.27pcts, net profit 17.89% year-on-year + 2.66pcts + 2.09pcts. The low growth rate of Q3 income is mainly affected by the weak recovery of downstream consumer demand, while the automotive electronics business still maintains a rapid growth rate. In terms of profitability, gross profit margin showed a steady upward trend, thanks to the rapid volume of the automobile business to promote the improvement of the rate of production. In terms of fees, the Q3 management and marketing research and development rates are 5.19%, 3.70%, 11.35% and 2.48%, respectively, compared with the same period last year + 0.47/+0.06/+1.91/+1.03pcts, and the overall expense rate is increased by 3.48%.
Looking forward to Q4 and next year, XR and automotive electronics business is expected to usher in volume growth. Company card position A customers, technical barriers highlight, MR products micro pupil distance adjustment core module alone, further establish the industry benchmark, attract more potential customers; automotive electronics business with tail wing, rotating screen, door handles, electric putters and many other categories continue to mass production, new production capacity continues to put into the car, the future is expected to maintain medium-and high-speed growth trend; smart home. In the long term, we are optimistic that the company's micro-transmission system in XR, automotive, medical and other application boundaries and intelligent trend, the company integrated gearbox and drive product value is expected to continue to improve, broad growth space.
Maintain the "highly recommended" investment rating. Considering that the company is affected by the weak recovery of downstream consumer demand in the first three quarters, our latest forecast is that revenue in 23-25 is 12.6 shock 17.9 yuan / 2.54 billion yuan, net profit is 1.7 shock 2.6 / 390 million yuan, corresponding EPS is 1.02 pound 1.50 shock 2.27 yuan, corresponding to the current stock price PE is 66.6 pound 45.3 max 29.9 Taking into account the company's technical barriers in the field of micro-transmission systems and the pre-card advantages of head customers, while actively promoting the vertical integration strategy, we maintain a "highly recommended" investment rating for the company.
Risk tips: downstream demand is lower than expected; new product R & D project schedule is not as expected; raw material price fluctuation risk; macro-political and economic environment fluctuation risk.