Main points of investment
In the first three quarters of 2023, the company achieved operating income of 2.498 billion yuan, + 7.83% year-on-year; net profit of 356 million yuan, + 32.58%; and non-return net profit of 354 million yuan, + 36.08%. 23Q3 achieved operating income of 489 million yuan in a single quarter, + 14.77% year-on-year; net profit of 86 million yuan, + 29.07%; and non-return net profit of 85 million yuan, + 33.72%.
Q3 revenue is growing steadily and profitability continues to improve.
The company's 23Q3 achieved operating income of 489 million yuan in a single quarter, + 14.77% year-on-year, and revenue achieved steady growth; in terms of gross profit margin, 23Q3 achieved a gross profit margin of 35.83%, year-on-year + 7.93pct, mainly due to the continuous optimization of the company's product structure and the impact of falling prices of bulk raw materials. On the expense side, the company's 23Q3 sales / management / R & D expense rates are 9.69%, 5.06%, 4.76%, respectively, year on year + 2.94/+0.74/-0.61pct. The rapid growth of sales expenses is mainly due to the company's continued increase in marketing, and the management and R & D expenditure rates are relatively stable. Under the comprehensive influence, the company's 23Q3 achieved a net interest rate of 17.61%, year-on-year + 1.95pct, and a net profit of 86 million yuan, + 29.07% compared with the same period last year.
The repurchase shares are used to implement employee stock ownership plans and / or equity incentives, which will help to enhance investor confidence. On October 26, 2023, the company passed the "proposal on the share Repurchase of the Company by centralized bidding transaction". It is proposed to buy back 208.33 million 41667 million shares at a price of no more than 24 yuan per share (inclusive), accounting for 0.54% of the company's total shares, with a total repurchase fund of 50 million yuan. The share buyback is mainly used for the implementation of employee stock ownership plans and / or equity incentives. Share buyback shows the company's confidence in the future development prospects and the recognition of the company's stock value, which will help to enhance investor confidence and further improve the company's long-term incentive mechanism, so as to mobilize the enthusiasm of the company's management team and employees. Promote the sustained and healthy development of the company in the future.
Profit forecast and valuation
It is estimated that the overall operating income from 2023 to 2025 will be RMB 3.262 billion, with a growth rate of 10.44%, 17.28%, 17.23%, and a net profit of 4.27, 504, and 595 million, respectively, with a growth rate of 46.0%, 18.17%, 18.10%, and 1.10, respectively, corresponding to 1.10, 1.30 and 1.54 yuan, respectively. Maintain the "overweight" rating.
Risk hint
Downstream customers put commercial freezers less than expected; the improvement of the company's profitability is not as expected; exchange rate fluctuation risk.