Main points of investment
In the first three quarters, the company realized operating income of 450 million yuan, with a year-on-year growth of 13.8%; realized sales gross profit margin of 44.72%, with a year-on-year increase of 1.02pct; the company increased investment in research and development of new products and the development of new markets.
In the first three quarters of 2023, the Company realized operating income of CNY 450 million, with a year-on-year growth of 13.8%; net profit attributable to parent of CNY 100 million, with a year-on-year growth of 1.2%; net profit deducted from non-parent of CNY 100 million, with a year-on-year growth of 3.0%.
The gross profit margin of sales in the first three quarters of the company was 44.72%, up 1.02pct year-on-year; the net profit margin of sales was 22.66%, down 2.74pct year-on-year. The growth of net profit attributable to the parent company was lower than that of operating income, mainly due to the year-on-year growth of 28.23% in the first three quarters of 2023 (1) in order to increase investment in research and development of new products;(2) in order to increase market development efforts, the company's marketing system talent team expanded, domestic and foreign advertising, travel expenses and exhibition expenses increased, and the company's sales expenses increased by 19.96% year-on-year;(3) The Jiashan Park of the Company was opened and put into operation, and the investment in labor and depreciation increased, and the management expenses of the Company increased by 26.45% year-on-year;(4) The interest income and exchange income of the Company's deposit raised funds account decreased, and the absolute value of the Company's financial expenses increased by 45.49% year-on-year.
In Q3 of 2023, the Company realized operating income of RMB 164 million yuan in Q3, with a year-on-year growth of 13.2%; realized net profit attributable to parent of RMB 30 million yuan, with a year-on-year growth of 1.0%; realized net profit deducted from non-parent of RMB 29 million yuan, with a year-on-year growth of 1.3%; we judge that the growth rate of net profit attributable to parent in Q3 is lower than that of income mainly due to the rapid growth of R & D expenses in Q3. 23Q3 Quarterly R & D expenses increased by 39.43% year-on-year due to the increase in R & D personnel, materials and depreciation expenses in the current quarter. 23Q3 single-quarter sales gross profit margin 42.90%, year-on-year increase 3.35pct, month-on-month decline 2.23pct;Q3 single-quarter sales net profit margin 18.43%, year-on-year decline 1.84pct.
Revenue structure optimization, emerging business enters rapid development stage
In the first three quarters, the company achieved operating revenue of 450 million yuan, an increase of 13.8% year-on-year. The revenue structure is undergoing significant changes, among which the sales revenue of air quality sensor business, which accounts for a relatively high proportion of original revenue, decreased by 16.26% year-on-year, while the emerging businesses represented by smart metering, medical health, safety monitoring and environmental monitoring achieved rapid growth, among which:
Smart metering business: sales revenue of smart metering business mainly based on ultrasonic gas meters and their modules increased by 634.28% year-on-year; Sifang Optoelectronics obtained new orders through on-site visits to major customers and participation in foreign exhibitions, and made certain progress in the expansion of ultrasonic gas meter business.
Medical health sensors: Sales revenue of medical health sensors business, mainly ultrasonic oxygen sensors, increased by 178.06% year-on-year. China's household ventilators and oxygen generators are still in the development stage, and the market penetration rate is relatively low. With the upgrading of consumption and the strengthening of residents 'health management awareness, the penetration rate is expected to increase. The medical health sensors distributed by the company have huge market potential.
Safety Monitoring Business: Sales revenue from safety monitoring business, mainly industrial safety and refrigerant leakage, increased by 117.46% year-on-year. The company has obtained project fixed-point projects from several well-known international customers and started mass supply. It is expected that it will contribute incremental performance to the company in the second half of 2023 or 2024.
Environmental monitoring business: sales revenue of environmental monitoring business, mainly gas analysis instruments and high temperature gas sensors, increased by 76.99% year-on-year. High temperature sensors have been fixed in large quantities abroad, and the matching of hybrid new energy vehicles in China is still advancing in an orderly manner. Sifang Optoelectronics takes self-owned brand passenger cars as target customers, carries out supporting promotion and verification, and will gradually promote them to joint venture automobile enterprises in the future.
We predict that in the future, with the increasing proportion of emerging businesses in operating revenue, its positive impact on operating revenue growth will be more obvious.
Profit forecast and valuation
It is predicted that the parent net profit of the company in 23-25 years will be 1.5 billion yuan, 2.5 billion yuan and 340 million yuan respectively, and the PE multiples corresponding to 23-25 years will be 35 times, 21 times and 16 times respectively, maintaining the "buy" rating.
Risk hint
Vehicle project delivery fell short of expectations; emerging business expansion fell short of expectations; civil air quality sensor market demand recovered less than expected.