2023Q3 revenue / homing net profit is + 25.54% compared with the same period last year. In the first three quarters of 2023, the company achieved operating income of 2.946 billion yuan, an increase of 16.67% over the same period last year, a net profit of 287 million yuan, an increase of 11.88%, and a net profit of 257 million yuan, an increase of 14.56% over the same period last year. In a single quarter, 23Q1/Q2/Q3 achieved revenue of RMB 8.56 million, an increase of 15.69%, 8.88%, 25.54%, 0.62%, 4.20%, 13.62% and 26.48%, 16.50% and 7.10%, respectively. The growth rate of the company's revenue and net profit increased month-on-month in the third quarter alone.
Profitability is basically stable, and cash flow is under short-term pressure. In terms of profitability, in the first three quarters of 2023, the gross profit margin / net profit margin was 30.99% and 9.57% respectively, and the year-on-year change + 1.72 pct; 0.35 pct showed that the gross profit margin / net profit rate of 23Q3 in the first three quarters of 2023 was 30.76% and 9.12% respectively, and the year-on-year change was + 0.91 gamma 0.92.
In terms of period expenses, the sales / management / finance / R & D expense rates in the first three quarters of 2023 were 6.55%, 6.83%, 0.69%, 8.47%, and + 0.22, 0.56, 0.48, 0.20 pct respectively in the first three quarters of 2023. The overall period expense rate was 21.17%, and the year-on-year change was + 1.46 pct, with a slight increase during the period. In terms of cash flow, the net operating cash in the first three quarters of 2023 was-28 million yuan, compared with 384 million yuan in the same period last year.
Lithium power business orders are full, and contract liabilities increased by 67.40% compared with the same period last year. Benefiting from the continuous technical iteration and customer expansion of the new energy battery automatic detection system business, the company's total contract liabilities reached 1.468 billion yuan by the end of 22, + 115.53% year-on-year; and 2.219 billion yuan by the end of 23Q3, + 67.40% year-on-year, reflecting the full demand downstream of the company and the substantial increase in on-hand orders.
Risk tips: the development of testing business is not as expected; the order of lithium electricity is not as expected; the market competition is intensified.
Investment suggestion: the company is the leader of comprehensive testing of electrical appliances, with the background of central enterprises, technology, industry status and growth motivation, the management goal is clear and strategic, and the development of testing business is accelerated. Lithium power business orders with series technology advantages continue to be good and flexible. Taking into account that there is still some uncertainty in the market environment, we slightly downgrade the company's 2023-25 net return to $516 million (the previous value is $544 million), corresponding to PE19/16/13 times, and maintain the "buy" rating.