In the third quarter, the income of science and technology in the south of the Yangtze River increased rapidly. The company released 23Q3 quarterly report, the company's income in the first three quarters was 236 million yuan (+ 37.35%), the net profit returned to the mother was 40 million yuan (+ 33.24%), and the non-return net profit was 32 million yuan (+ 35.54%). In terms of Q3 alone, the company's income is 133 million yuan (+ 70.30%), the net profit is 30 million yuan (+ 90.88%), and the non-return net profit is 24 million yuan (+ 54.97%).
The amalgamation of Jiangnan science and technology in the third quarter brought about a significant increase in the company's revenue in a single quarter.
Q3 gross profit margin continues to rise, the cost investment increases. The company's Q3 gross profit margin reached 73.95%, which continued to rise from the previous month. The company's new products are gradually put into the market, and the gradual replacement of the self-developed password chip has greatly reduced the product cost. The company increased the cost of investment, and the expenses of sales, management and R & D increased by 51.17%, 27.46% and 45.65% compared with the same period last year.
And show the thickening performance of Jiangnan science friends, and issue equity incentives to promote the re-growth of Jiangnan science friends. The company acquired 66.9% shares of Guangzhou Jiangnan Keyou Science and Technology Co., Ltd. with its own capital of 151 million yuan. Jiangnan Keyou 21max's 22-year income was 118 million yuan, and its net profit was 0.22 million yuan, which has been consolidated in the third quarter.
Password products are highly sticky on the customer side, and the company quickly cuts into the financial field through acquisitions. At the end of September, the company issued equity incentives for Jiangnan Keyou, with a total number of no more than 28 people, all of whom are core employees of Jiangnan Keyou; the number of restricted shares to be granted is 993000 shares, accounting for about 0.87% of the company's total share capital; the grant price is 34.10 yuan per share. The assessment target is based on Jiangnan Keyou in 2022, and the compound growth rate of 23-24 revenue or return net profit is not less than 20%. One of the two can be achieved.
Release a new generation of self-developed cryptographic chips and lay out the security solution for vehicle networking. The company recently released three new chips: random number chip XR100, Internet of things security chip XT100 and XT200. XT200 is a low-cost, low-power cryptographic chip for security areas such as the Internet of things, which can be used in industrial Internet, vehicle networking, block chain, charging piles and other scenarios, and has won many awards. The company has also released a car networking security solution, around the "cloud-car-X" vehicle networking architecture, launched a number of cryptographic technology products covering identity authentication, instruction security, OTA upgrade and so on. The company has signed strategic cooperation agreements with a large amount of data, Chongqing Yuanwang and other manufacturers to jointly layout vehicle network security.
Risk tips: macroeconomic impact on IT expenditure; increased competition in the industry; new business expansion is not as expected.
Investment advice: maintain a buy rating. It is estimated that the operating income from 2023 to 2025 will be 4.64 shock 6.66 / 864 million yuan, with a growth rate of 37%, 43% and 30% respectively. The net profit of the parent company will be RMB 2.35 million, and the corresponding PE will be 267 million yuan before 40-27-20. The "Buy" rating will be maintained.