Event: the company released its Triple report for 2023. The company's 2023Q1-Q3 realized operating income of 1.901 billion yuan, down 4.71% from the same period last year, and realized net profit of 195 million yuan, down 28.80% from the same period last year.

Of this total, 2023Q3's single-quarter operating income was 924 million yuan, an increase of 21.14% over the same period last year, and its net profit was 87 million yuan, down 29.75% from the same period last year.

Revenue improved under the recovery of industry demand. According to the General Administration of Customs, from January to September 2023, domestic vacuum cleaner exports were 28.546 billion yuan, an increase of 8.24 percent over the same period last year, of which from July to September, domestic vacuum cleaner exports were 11.666 billion yuan, an increase of 16.17 percent over the same period last year. The company is one of the top ten domestic vacuum cleaner exporters. Due to the improved demand in the 2023Q3 industry and the large increase in Q3 revenue (the company's revenue is mainly for export), we expect the company's Q3 export income to achieve greater growth in a single quarter. In addition, the company has mass-produced commercial beauty instruments during the year and is expected to contribute new revenue increments in the future.

Profitability is under pressure, and the contribution of exchange gains weakens. 1) Gross profit margin: 2023Q1-Q3/2023Q3 gross profit margin is year-on-year-0.57pct/-0.23pct to 18.83% to 19.32%, with strong profitability. 2) rate side: the 2023Q1-Q3 sales / management / R & D / financial rate is 0.49%, 3.28%, 3.47%, 1.59%, and the year-on-year change + 0.03pct/+0.27pct/+0.16pct/+1.74pct is due to the decrease in foreign exchange earnings. 3) net interest rate: taken together, the 2023Q1-Q3/2023Q3 net interest rate is-3.33pct/-6.55pct to 10.43% 3.33pct/-6.55pct 9.75% compared with the same period last year.

Profit forecast and investment advice. We estimate that the net profit of homing from 2023 to 2025 will be 3.15 yuan 3.59max 4.01 yuan respectively, compared with the same period of last year-9.3% Universe 14.1% Universe 11.8%, maintaining the "overweight" rating.

Risk hints: raw material price fluctuation risk, industry competition intensification, exchange rate fluctuation risk.