Event: on October 26, the company released its quarterly report of 2023. In the first three quarters, the company achieved revenue of 3.906 billion yuan, an increase of 32.05% over the same period last year. The net profit of returning mother was 277 million yuan, up 65.17% over the same period last year. The net profit of non-returning mother was 272 million yuan, up 74.93% over the same period last year.
Q3 achieved high performance growth in 2023, and profitability continued to improve.
(1) growth analysis: in the first three quarters of 2023, the company achieved revenue of 3.906 billion yuan, an increase of 32.05% over the same period last year, with a marked increase in revenue, mainly due to the mass production of designated projects and the expansion of sales scale; the net profit of returning home was 277 million yuan, an increase of 65.17% over the same period last year. The non-return net profit was 272 million yuan, an increase of 74.93% over the same period last year, of which revenue in the third quarter was 1.455 billion yuan, an increase of 16.55% over the same period last year, and 109 million yuan, an increase of 18.88% over the same period last year.
(2) profitability analysis: in the first three quarters of 2023, the company's sales gross profit margin was 18.16%, year-on-year growth of 4.42pct, net sales profit rate of 7.13%, year-on-year growth of 26.05pct, profitability continued to improve The company's sales expense rate, management expense rate, financial expense rate and R & D expense rate in the first three quarters of 2022 were 0.75%, 4.40%, 0.19% and 4.32%, respectively, compared with the same period last year-0.05pct,-0.60pct,-0.39pct, 0.93pct. Cost control is effective.
(3) continue to increase R & D investment: the company's R & D expenditure in the first three quarters of 2023 was 169 million yuan, an increase of 68.49% over the same period last year. The company continues to increase investment in research and development to consolidate its core competitiveness.
The layout of multi-business continued to break through, and the fixed-point amount increased rapidly.
The company actively distributes new energy vehicles, power batteries, energy storage and photovoltaic inverter precision stamping die, communications and other businesses.
From January to June 2023, a total of 28-28.5 billion yuan was obtained from clients' fixed-point letters of intent, of which projects with a project cycle of 1-8 years and 10-12 years are estimated to be RMB258-26.2 billion and RMB 22-2.3 billion respectively.
The company has established good cooperative relations with GAC Eian, Geely Automobile, BYD, Ningde Times, Yiwei LiNeng, Huawei, Xinnengan, EnphaseEnergy and other domestic and foreign well-known enterprises, and has maintained long-term cooperative relations with world-renowned auto parts companies such as Bentler, Foggia, Valeo, Mahler, Yanfeng, etc. It has become a first-class supplier to Guangzhou Automobile Group, BYD, FAW-Volkswagen, NIO Inc. Automobile, Geely Automobile, Daimler, XPeng Inc. and other vehicle manufacturers.
Actively layout optical storage inverters to create new performance growth points.
In line with the development trend of the industry, the company actively arranges optical storage inverters, and has supplied photovoltaic inverters, energy storage and other related products to Huawei, Xineng'an, Enphase Energy, Larsen and other domestic and foreign well-known enterprises, with sufficient orders on hand. In August 2023, the company obtained the winning bid letter for a customer of photovoltaic inverter and energy storage, and became a supplier of its energy storage structure, industrial and commercial inverter assembly and structure project. it is expected that the total project amount is 9-1 billion yuan and the project cycle is 2-4 years. It will help to improve the company's future business performance.
Wholly-owned subsidiaries complete registration, market expansion and global layout further.
In June 2023, the wholly-owned subsidiary set up in Xiamen completed the registration procedures and obtained the business license for photovoltaic equipment and components manufacturing; battery parts production; battery parts sales; metal structure manufacturing, etc. The main strategic customer of Xiamen subsidiary is Xiamen Xinengda invested by CATL and ATL. The establishment of a wholly-owned subsidiary is conducive to expanding the energy storage metal structure market and improving the company's business layout.
Maintain the "overweight" rating: taking into account the weak industry demand and increased market competition in 2023, we downgrade the company's parent net profit from 2023 to 2025 to 4.32,7.15 and 1.118 billion yuan respectively (before the downgrade is 6.92,10.51 and 1.31 billion yuan respectively), and the corresponding PE is 19,11 and 7 times respectively.
Risk hint: the industry boom weakens the risk, and the development of new energy or optical storage business is not as expected.