Event description. The company released its third-quarter report on October 27, saying that in the first three quarters, operating income reached 3.906 billion yuan, up 32.05 percent over the same period last year; net profit returned to its mother was 277 million yuan, up 65.17 percent over the same period last year; and basic earnings per share was 1.5561 yuan, up 44.73 percent over the same period last year. In 2023, Q3 realized a net profit of 109 million yuan, an increase of 18.88 percent over the same period last year, and operating income of 1.455 billion yuan, an increase of 16.55 percent over the same period last year. Q3 gross profit margin 18.53%, year-on-year + 0.35pct, month-on-month + 1.08pct; net profit 7.56%, year-on-year + 0.23pct, month-on-month + 0.96pct.
The expense rate during Q3 is 9.48%, with a month-on-month ratio of + 0.28 pct, in which the rates of sales, management, finance and R & D expenses are 0.76% 3.99% 0.14% and 4.60% respectively.
The newly designated projects are sufficient to ensure the future performance of the company. The fixed-point intention of the project is sufficient. From January to April 2023, the company expects the total amount of the newly designated project to be 149-15.1 billion yuan, and the project period is 1-7 years. From May to June, the company expects the total amount of newly designated projects to be 13.1-13.4 billion yuan, including 109-11.1 billion yuan for projects with a project period of 1-8 years and 22-2.3 billion yuan for projects with a project cycle of 10-12 years. Downstream customers cover new energy vehicles, power batteries, energy storage and photovoltaic inverters, communication servers and other industries. The number of new orders signed in the new energy field has increased significantly. By the end of April 2023, the intentional orders for new energy vehicle body components, power battery boxes and optical storage products signed based on the planned production capacity were about 4.5 billion yuan, 9.9 billion yuan and 1.5 billion yuan respectively.
Actively develop customers and orders in the new energy industry. The company cooperates deeply with GAC Eian, BYD, NIO Inc., XPeng Inc. and other automobile companies, while signing a strategic cooperation agreement with Ningde to ensure the market share of battery box business. Huawei, Yiwei Lithium Energy and other domestic and foreign well-known enterprises to supply inverter structures and energy storage cabinet structures and other related products, incremental matching potential. In August, the company obtained the winning letter from a customer of photovoltaic inverter and energy storage head, confirming that the company is the supplier of its energy storage structure, industrial and commercial inverter assembly and structure project. the total project amount is expected to be RMB 9-1 billion yuan, and the project period is 2-4 years. In the future, the winning project will bring 225 million yuan to 500 million yuan in revenue for the company, which is expected to have a positive impact on the company's sales performance in the next 2-4 years.
Expand new business and lay out smart car related products. In the field of intelligent vehicles, the company provides H customers, Desai Xiwei, Suiteng Juchuang and other companies with products that can be used for VGW intelligent network connection, OBC vehicle charging, mPOWER intelligent electric, AIS fusion sensing, ADS intelligent driving, CDC intelligent cockpit and other modules. In the field of robotics, the company has supplied metal structure-related products for Ubixuan and Kuka.
Investment suggestion: we expect the company to achieve a revenue of 61.35,8464 million yuan from 2023 to 2025, a net profit of 4.55 million yuan and a net profit of 903 million yuan, and a price-to-earnings ratio of 18, 11 and 9 times 23-25 on October 26, 2023, respectively. Considering that the company ploughs moulds and metal structures, and focuses on the layout of new energy racing tracks, including new energy vehicle structures, power battery boxes and optical storage equipment, the future demand continues to release, there is plenty of room for growth, and the "recommended" rating is maintained.
Risk hints: macroeconomic and market demand is lower than expected; production capacity expansion is not as expected; raw material price fluctuation risk.