Event: re-upgrade Technology to release the third quarterly report of 2023. The company realized 443 million yuan in revenue in the third quarter, an increase of 8.79% over the same period last year, and realized a net profit of 36 million yuan, an increase of 5.28% over the same period last year. The net profit after deducting non-return was 31.65 million yuan, up 8.74% from the same period last year.
The main industry of materials maintains a steady growth pace. The total revenue of the company's main business in the first three quarters was 1.238 billion yuan, an increase of 6.01% over the same period last year, of which the clean air sector increased by 2.79%, after deducting the long distance, the clean air revenue increased by 9.13%, and the efficient and energy-saving sector increased by 11.63%. With the delivery of the distant environment, the company's center of gravity will gradually return to the main material industry, and the first direction is the further improvement of the material matrix. On the basis of consolidating glass fiber, PTFE membrane materials and melt blown materials, the newly developed products such as oil filtration and building thermal insulation in the past two years may gradually increase in quantity, and the second is the further improvement of the downstream application scene. Previously, the company's materials are mainly used in semiconductors, panels and other industries. The future application will be extended to mobile dust-free space (new energy vehicles, aerospace, etc.) and fixed dust-free space (household dust-free air conditioning). Take new energy vehicles as an example, the company announced on July 25 that it would sell 70% of its wholly-owned subsidiary Suzhou Youyuan Environment to Manhumer. After the completion of this transaction, the company will cooperate deeply with Manhumer to jointly layout the new energy vehicle business. Manhumer, as one of the leading automotive filter manufacturers in the world, has profound qualifications and rich customer resource reserves. The re-promotion of technology under Manhumer's brand endorsement may quickly increase its material awareness in the field of in-vehicle filtration, and the long-term growth potential of the business line is promising.
Gross profit margin stabilized and rebounded. In terms of expense rate, the expense rate of single Q3 company during the period is 17.02%. Corresponding to the net interest rate of single Q3 company, the net interest rate is 8.9%, which increases 0.38pct compared with the same period last year and decreases 3.03pct compared with the previous year.
Profit forecast and investment suggestions: the cost and scale advantage of the main industry of science and technology materials is strong. In the past two years, it has actively cultivated many performance growth points, such as aerospace, new energy vehicles, household dust-free air conditioners, and its contribution will continue to expand. If long-distance delivery is completed by the end of the year, the company's net profit from 2023 to 2025 is expected to be 160 million, 200 million and 250 million respectively, corresponding to 28X, 23X and 18X respectively, maintaining a "buy" rating.
Risk hint: the risk of lower-than-expected demand growth for downstream emerging applications, the risk of deteriorating competition, and the risk of significant fluctuations in raw materials and energy prices.