Event: the company announced that in the third quarter of 2023, it achieved operating income of 2.662 billion yuan (YOY+55.70%), net profit of 387 million yuan (YOY+112.12%) and non-return net profit of 344 million yuan (YOY+115.91%) in the first three quarters.
Comments: the product structure is optimized, the profit quality is improved, and some restricted stocks are reserved to stimulate business vitality. On the revenue side, 23Q3 achieved revenue of 878 million yuan (YOY+40.94%) in a single quarter. At the profit end, 23Q3 achieved a net profit of 129 million yuan (YOY+84.91%) in a single quarter. The main factors are: (1) the increase in product sales revenue and structural changes led to an increase in gross profit margin, which increased by 3.28pcts to 50.36% in the first three quarters compared with the same period last year. (2) the expense rate during the period decreased from 1.29pcts to 34.05% compared with the same period last year, of which the sales / management / R & D / financial expense rate increased from-0.58/1.66/-4.23/1.86pcts to 5.13% 10.51% 17.35% 1.06% respectively. On the cash flow statement, the net cash flow generated by 23Q3's single-quarter operating activities increased by 183.16% compared with the same period last year, mainly due to the increase in cash flow brought about by the sale of goods as a result of good payback. On the balance sheet side, the company's total assets increased by 33.73% to 8.459 billion yuan at the end of the third quarter of 23 compared with the end of 22 years, mainly due to the issuance of convertible corporate bonds. In addition, on October 23, 2023, as the reservation grant date, the company awarded 1 million restricted shares to 42 incentive targets at the grant price of 19.89 yuan per share.
Core logic: (1) pattern end: based on uncooled infrared, actively layout laser and microwave radio frequency chips & modules, etc., gradually grow into leading semiconductor sensor enterprises; (2) revenue end: equipment field, under the trend of low cost, the application prospect of uncooled infrared is broad; the overseas market is expanding steadily, and the prosperity of outdoor products is expected to continue. Domestic security fire protection, industrial temperature measurement business and UAV and other fields of good cooperation, and layout of vehicle medium-and long-term growth curve; the company's microwave, radio frequency and other new products are expected to enter the volume exchange period from the R & D investment period, attach importance to the company's layout in satellite Internet and other fields.
Profit forecast and investment advice: it is estimated that the EPS for 23-25 years will be 1.230.86 Universe 2.78 yuan per share respectively, maintaining a reasonable value of 58.90 yuan per share and maintaining a "buy" rating.
Risk tips: low expectations for new product expansion, low expectations for equipment demand and delivery, policy adjustment, etc.