Event description
The company released the third quarter report of 2023. In the first three quarters of 2023, the company's revenue was 1.828 billion yuan, an increase of 18.62% over the same period last year, and the net profit was 77 million yuan, an increase of 158.92%. The net profit was-7 million yuan, an increase of 88.66% over the same period last year. Q3 achieved revenue of 629 million yuan in a single quarter, an increase of 17.51 percent over the same period last year, and the net profit of returning to the mother was 52 million yuan, an increase of 495.35 percent over the same period last year. The net profit of non-returning mothers was 24 million yuan, an increase of 158.54 percent over the same period last year.
Event comment
The market terminal demand resumes the superimposed production capacity release, the company Q3 net profit obviously improves. Since the second half of the year, LED shows that the application has entered the peak sales season, driving the order demand of the industry chain to pick up continuously. With the large-scale investment and construction of Jucan Suqian production base, the company's capacity scale release effect is obvious, at the same time, the production and sales of high-end products represented by backlight, high light efficiency, Mini LED and silver mirror flip products are prosperous, and the company's Q3 net profit has obviously improved.
Product prices have rebounded steadily, adhere to meticulous management, and profitability has improved significantly. The company strengthened independent technological innovation, promoted the performance and structure upgrading of high-end products, and the price of products rebounded steadily. Q3 single-quarter gross profit margin was 9.68%, an increase of 1.51pcts over the same period last year. The company adheres to meticulous management. With the continuous improvement of production efficiency and effective cost control, the company's Q3 expense rate has significantly decreased, and the net interest rate has increased significantly. The Q3 net interest rate is 8.26%, an increase of 10.72pcts over the same period last year. During the period, the expense rate / R & D expense rate is 0.79% and 4.93% respectively, which is lower than the same period last year. 2.75pcts/1.97pcts.
The fixed increment has been successfully completed, the Mini/Micro LED chip has been added, and the product structure has been continuously upgraded. Looking to the future, with the promotion of the project of "expansion and upgrading of high-efficiency LED chips", high-end high-end products such as Mini LED and car lighting have been launched one after another, and the company's product structure has continued to upgrade. At the same time, the landing of the Dingzeng project further improves the layout of the company's Mini/Micro LED track, enhances the company's core competitiveness, and injects new momentum into the company's profit growth.
Investment suggestion
It is estimated that the company's net profit from 2023 to 2025 will be 1.29 million yuan for the parent company, an increase of 303.6%, 58.3%, 48.8%, corresponding to EPS 0.19, 0.30, 0.45 and PE, 54.8, 34.6, 23.3 times for the parent company, maintaining the "Buy-A" rating.
Risk hint
The market demand is not as expected; the company's capacity expansion is not as expected; the industry technology renewal risk; the product market price decline risk.