In the first three quarters of 23, the net profit of homing fell 63.15% compared with the same period last year, maintaining the "buy" rating company to release the third quarterly report of 2023, with revenue of 1.329 billion yuan in the reporting period, down 31.57% from the same period last year, and net profit of 246 million yuan, down 63.15% from the same period last year. Of this total, 23Q3's income was 349 million yuan, down 36.58% from the same period last year, and its net profit was 23.51 million yuan, down 87.15% from the same period last year.
Due to the slowdown in the purchasing pace of downstream customers and the decline in the company's gross profit margin, we downgrade the company's profit forecast and expect the company to achieve a home net profit of RMB 4.05 million in 2023-2025 (the previous value is RMB 676), and the corresponding PE is 1.11 billion yuan respectively as much as in 31-19-13. According to Wind's consensus expectation, the company's 24-year average PE is 13x. Considering that the company's non-ceramic capacitor business has entered a period of rapid growth and the second growth curve is clear, the company is given 24-year PE 24X, corresponding to a target price of 69.12 (the previous value is 72.25 yuan), maintaining a "buy" rating.
Downstream demand is weak, low-cost procurement pulled down the company's gross profit margin, the company's revenue and return net profit declined significantly in the first three quarters, mainly due to sluggish demand from downstream customers, and sales of highly reliable ceramic dielectric capacitors declined compared with the same period last year. Superimposed special customers low-cost procurement brought about a decline in price, resulting in a decline in corporate revenue and gross profit margin, while fixed costs such as labor costs were flat and slightly increased in the short term. At the same time, the business-related expenses have been increased in order to consolidate and enhance the market share, so that the net profit belonging to the shareholders of listed companies has declined greatly. The company's overall gross profit margin in the first three quarters was 43.66%, a decrease of 10.45pct compared with the same period last year, and a gross profit margin of 35.79% in the third quarter, a decrease of 16.18pct compared with the same period last year. The expense rate in the first three quarters was 17.48%, an increase in 6.40pct over the same period last year, of which sales expenses increased by 22.55%, management expenses increased by 14.76%, and R & D expenses decreased by 5.01%.
New products have entered a period of rapid growth, and the second growth curve is gradually clear. The company continues to develop along the depth of research and development, technology autonomy, product serialization, and carries out proactive research and development close to customer needs and technology development trends, continuously enriches product categories, non-MLCC products have made remarkable progress, and the revenue of other electronic components such as microwave modules, microprocessors and microcontrollers has increased significantly. Sales accounted for an increase in the proportion of self-produced business income in the first half of the year, 9.13pct. In the civil field, high-power RF microwave ceramic capacitors and packaging shell products have been partially developed and finalized, and small batch supply has been realized.
Enter the fifth aerospace institute supply catalogue, aerospace products are expected to continue to benefit this year, the company's MLCC products have passed the product certification of the Fifth Research Institute of Aerospace Science and Technology Group, and have entered the supply catalogue, indicating that the company's products are basically capable of supporting most of China's satellites and other spacecraft. At present, the satellite Internet is in a period of rapid development, and the company's aerospace and products are expected to achieve on-board support and open up the company's new application market in special fields.
Risk tips: self-produced business orders are not as expected, product gross profit margin fluctuation risk.