盈利稳步提升。2023Q3 净利率42.77%，同比提升46.02pct，环比提升14.53pct，且自Q1-Q3 以来，公司净利率呈现稳步抬升节奏，分别为15.87%/28.24%/42.77%，盈利能力显著修复主要系：一是降费提效，2023Q3 期间费用率为18.03%，同比下降7.05pct，其中销售/管理/研发/财务费用率为6.48%/5.07%/8.25%/-1.77%，同比-0.20/-2.48/-2.90/-1.48pct；二是信用减值损失减少，受益于应收账款的收回增加，前三季度信用减值损失为1763 万元，去年同期为-2540 万元；三是资产减值损失冲回，受益于收回的质保金增加，前三季度资产减值损失为848 万元，去年同期为69 万元。Events:
The company released its third quarter report in 2023. In the first three quarters of 2023, the company achieved operating income of 349 million yuan, an increase of 44.79% over the same period last year, a net profit of 96 million yuan, an increase of 337.17% over the same period last year, and a net profit of 80 million yuan, an increase of 995.49%, a year-on-year increase of 995.49%, a gross profit margin of 34.52%, a decrease of 2.75pct and a net interest rate of 28.82%, and an increase of 17.26pct over the same period last year. 2023Q3, the company achieved an operating income of 101 million yuan, an increase of 18.89% over the same period last year, and a net profit of 43 million yuan, an increase of 881.37% over the same period last year.
Comment
Profits are rising steadily. The net interest rate of 2023Q3 is 42.77%, which is higher than that of the same period last year and 14.53pct. Since Q1-Q3, the net interest rate of the company has risen steadily, which is 15.87%, 28.24% and 42.77%, respectively. The main factors to repair the profitability are as follows: first, to reduce fees and improve efficiency, the expense rate during the 2023Q3 period is 18.03%, which is down 7.05pct from the same period last year. Second, the credit impairment loss decreased, benefiting from the increase in the recovery of accounts receivable, the credit impairment loss in the first three quarters was 17.63 million yuan, compared with-25.4 million yuan in the same period last year; third, the asset impairment loss was reversed, benefiting from the increase in quality assurance recovered, the asset impairment loss in the first three quarters was 8.48 million yuan, compared with 690000 yuan in the same period last year.
Great progress has been made in customer development. On October 8, the company announced on its official account that according to the agreement signed between the two sides, the company plans to provide Best Precision Linear guideway Grinder products and corresponding technical support to Best Seiki within one year, which is currently the longest grinding length, the highest technical difficulty and the highest grinding efficiency in the world. The CNC linear guideway grinder involved in this cooperation is a new product of the company in the field of precision grinding, which reflects the company's continuous technological breakthrough in the field of high-end CNC roll grinder. We believe that this cooperation is expected to rely on the company's technical advantages in roll grinders to help Best and other downstream customers make further breakthroughs in guideways and other products, and to provide better technical support in machine tools, new energy equipment and robots.
Profit forecast: as an excellent enterprise in the domestic roll grinder industry, the company is expected to fully benefit from downstream demand in the future, and the company is expected to further improve its market position. We expect the company to achieve a return net profit of 1.04 / 1.46 / 1.64 yuan from 2023 to 2025, corresponding to 60 / 43 / 38 times of PE.
Give the 2024 earnings 46 times PE valuation, the target price is 26.6 yuan, the first time to cover, given the "overweight" rating.
Risk hint: downstream demand is lower than expected, profit forecast and valuation judgment are not as expected.
