Event: the company achieved operating income of 296 million yuan in the first three quarters of 23 years,-26% of the same period last year, and net profit of 33 million yuan,-79% of the same period last year.
The company's 23Q3 revenue grew steadily compared with the previous month, and the R & D expenses diluted the company's profits. Company 23Q3 operating income 115 million yuan, year-on-year + 6%, month-on-month + 10% Ting Q3 gross profit margin of 48.2%, year-on-year-5.4pcts, month-on-month-1.8pcts. Affected by the global economy and other factors, domestic and foreign market demand is weak, the company's operating income growth rate slows down, but by adjusting the product structure, the company makes the main business gross profit margin basically stable. At the same time, the company's layout of new products, R & D investment in the automotive field and the continuous introduction of excellent R & D talents have led to a rapid increase in the company's R & D expense rate. 23Q3's R & D cost is 46 million yuan, and the corresponding R & D expense rate is 39.5%, year-on-year + 24.7pcts, month-on-month + 13.1pcts. With a slight decline in gross profit margin and higher R & D investment to dilute the company's profits, 23Q3 achieved a net profit of 4 million yuan,-90% year-on-year and-78% month-on-month.
The proportion of high-margin signal chain business continues to increase, and the product structure continues to be optimized. The operating income of 23Q3 signal chain products is 63 million yuan, accounting for 55%, while that of power management products is 52 million yuan, accounting for 45%. The company's signal chain business with high gross profit margin and high technical barriers is growing rapidly (23H1 signal chain business revenue is 88 million yuan, accounting for 49%, gross profit margin is 57%; power management business revenue is 93 million yuan, accounting for 51%, gross profit margin is 42%), and the product structure is further optimized. The company adheres to the development strategy of "multi-market layout and stable development", continues to broaden the product matrix, and continues to increase its share in consumer electronics, industrial control and security, lighting, communication equipment and other fields. For example, the company's newly launched multi-channel LDO PMIC products mainly highlight the characteristics of high current, high PSRR, ultra-low output voltage and ultra-low noise, providing rich high current products for Camera peripheral power supply. It will be widely used among customers of major mobile phone brands this year. The ultra-high bandwidth analog switch with 11GHz will be extended to head communication customers.
The product matrix extends to the automobile / server field, opening up the long-term market space. At present, the company has established close cooperation with many consumer electronics terminal customers, such as OPPO, XIAOMI, Vivo, Qualcomm Inc, Alphabet Inc-CL C, Samsung and so on.
At the same time, the company's new products are also gradually extended to automotive electronics and servers and other fields. (1) in the automotive field, the company has launched a series of products, including the first domestic ultra-high-speed analog switch for gauge-level 5.8GHz, and the first domestic 15A H bridge DC motor drive product for automobile body control. The company has also launched a series of operational amplifier automotive gauge products, including current monitoring operational amplifiers with common-mode voltage range from 0 to 70V, two-way operational amplifiers with high voltage, low noise and low power, high-bandwidth, high-voltage swing rate, low-noise high-voltage operational amplifiers, and various series of automotive voltage regulators. (2) in terms of servers, the company has launched a full range of switching solutions, including PCIE3.0 switches with high bandwidth of 11GHz, I2C switches with Reset function or 8ram 4-channel with interrupt input. We believe that the company insists on the layout of high-tech barrier products, which is the core reason why the company can maintain a high gross profit margin in the industry, and it also helps the company to compete differently with other domestic simulation companies and open up the long-term market space.
Investment suggestion: from 2023 to 2025, we expect the company to achieve an income of 40.62 million yuan, a net profit of 0.53 million yuan and a net profit of 1.00 billion yuan, and the corresponding PE is respectively times that of 120-63-34.
Risk hint: industry competition aggravates risk; downstream demand is lower than expected risk; inventory water level is high risk