Revenue increased in the third quarter compared with the same period last year, and profits were under pressure. In the first three quarters, the company achieved income of 296 million yuan (YoY-26.34%), net profit of 33 million yuan (YoY- 79.47%), non-return net profit of-22 million yuan (YoY- 115.07%), and net profit of 65 million yuan excluding share payment fees. Among them, 3Q23's revenue is 115 million yuan (YoY + 6.07%, QoQ + 9.76%), the net profit returned to the mother is 4.12 million yuan (YoY-90%,QoQ-78%), and the non-return net profit is-15 million yuan (YoY- 146% Q QoQ-574%). The company's income in the first three quarters was 151 million yuan for CITIC chain products, accounting for 51.11%, and 145 million yuan for power management products, accounting for 48.89%. In the first three quarters, the company invested 97 million yuan in R & D, an increase of 113% over the same period last year, and the R & D fee was 32.74%, an increase in 21.44pct over the same period last year.
Gross profit margin declined in the third quarter from the previous quarter, while inventories rose slightly from the previous quarter. In terms of profitability, the company's gross profit margin in the first three quarters decreased by 7.8pct to 48.9% compared with the same period last year, and the rate during the period was increased by 37.9pct to 56.9% compared with the same period last year. The R & D fee increased 21.4pct, the management fee increased 11.5pct, the sales rate increased 5.1pct, and the financial rate was basically the same. The gross profit margin of the third quarter is 48.22% (YoY-5.4pctQoQ-1.8pct), and the period rate is 63.14% (YoY + 40.0pctQoQ + 16.1pct), of which the R & D rate is increased from 13.1pct to 39.50%. The sharp increase in fees during the period is mainly due to the company's increased R & D investment in the automotive field, the continuous introduction of excellent R & D technical personnel, and the increase in share payment fees. As of the end of September 2023, the company's inventory stood at 128 million yuan, up slightly from 123 million yuan at the end of June.
Multi-market layout brings downstream dispersion, and a variety of new products continue to be launched. The company has always adopted the strategy of multi-market layout and stable development, and the downstream market of product applications is relatively scattered. In the first half of the year, the mobile phone market accounted for about 21%, notebook computers accounted for 7%, smart wear accounted for 13%, smart home appliances accounted for 12%, communications equipment accounted for 9%, industrial control and security accounted for 25%, lighting accounted for 11%, and the other 2%. The company continues to launch new products for different fields, among which multi-channel LDO PMIC products for mobile phones mainly highlight the characteristics of high current, high PSRR, ultra-low output voltage and ultra-low noise, which provide rich high-current products for Camera peripheral power supply, and will be widely used in customers of major mobile phone brands this year. In the automotive field, the first ultra-high-speed analog switch of gauge-grade 5.8GHz, the first 15A H bridge DC motor drive product for automobile body control, operational amplifier series products and voltage regulator series products are launched.
Investment advice: the company continues to expand new products, lay out multiple markets, and maintain its "buy" rating. We expect the company's 2023-25 net profit to be 0.32max, 102pm, 140 million yuan, year-on-year growth rate-81.6 pound, 221max, 36.2%, 0.13x0.41x0.55, corresponding to the stock price on October 26, 2023, 191x5944x respectively. The company continues to expand new products, layout multi-market, and maintain the "buy" rating.
Risk tips: new product research and development is not as expected; customer verification is not as expected; demand is not as expected.