Performance Overview: on October 26, the company released its third quarterly report for 2023. In the first three quarters of 2023, the company achieved operating income of 422 million yuan, + 19.34% year-on-year; net profit of 135 million yuan, + 20.11%; and non-return net profit of 128 million yuan, + 25.69% of the same period last year. From a quarterly point of view, the company's 2023 Q3 achieved operating income of 150 million yuan in a single quarter, year-on-year-1.80%, month-on-month + 6.40%; return-to-mother net profit 41 million yuan, year-on-year-12.01%, month-on-month-10.16%; deduction of non-return net profit 39 million yuan, year-on-year-12.13%, month-on-month-14.13%.
Profitability is under short-term pressure, but the net profit rate on Q3 sales remains above 25% in a single quarter. The overall company expense rate increased in the first three quarters of 2023, with sales / management / R & D / financial expense rates of 1.52%, 11.30%, 6.76% and 0.85%, respectively, compared with the same period last year-0.26pp/+0.50pp/+0.60pp/+1.06pp. The total period rate (including R & D) is 18.72%, which is + 1.90pp compared with the same period last year. The gross profit margin / net profit margin of the company in the first three quarters of 2023 was 54.84% and 32.28% respectively, compared with the same period last year-0.46pp/-1.63pp. On a quarterly basis, 2023Q3's single-quarter sales gross profit margin and net sales profit margin are 51.25% and 28.24% respectively, compared with the same period last year-0.86pp and-4.17pp, respectively, and month-on-quarter are-3.05 pp and-4.78 pp respectively. Compared with the previous month, the company's expenses have increased and its profitability is under pressure, but in terms of its absolute value, the company's net profit rate on sales remains above 25%, which has a competitive advantage.
Product lines continue to enrich, cold heading wire into mass production, performance can be expected. The company developed new technology, broke through the refining quality of cold heading wire is unstable, easy to be affected by environmental measures and stop production or limit production and other industry pain points, and reduce production costs to meet the needs of different customers. Huzhou new coordinates have been given to people, Wanxiang and other bearing manufacturers and Fuao shares, Huayuan shares and other auto parts companies stable supply, and actively open up overseas markets.
Expand the layout of new energy sectors and create new growth poles. The company actively distributes the field of new energy and expands the development of precision components in the industrial chain of new energy vehicles such as automotive carbon dioxide heat pump system and thermal management integration module, electric drive system, power battery system shell and so on. The research and development of new products through product design optimization, production process improvement and other ways to achieve product safety and reliability, lightweight, cost-intensive and other advantages, is expected to become a new growth point of the company in the future, waiting for business volume.
Profit forecast and investment advice: the company's 2023-2025 net profit is expected to be 2.23,2.70 and 308 million yuan, according to the closing market value on October 26, the corresponding PE is 14, 12, 10 times, maintaining the "buy" rating.
Risk hint: new product cooperation is not as expected, downstream automobile industry development is not as expected, cold forging permeability is not as expected, market competition aggravates risk, raw material price fluctuation risk and so on.