Events:
According to the company's announcement for the third quarter of 2023, in the first three quarters, the company's revenue was 930 million yuan, + 24.32% compared with the same period last year, and the net profit returned to its mother was 46.0847 million yuan, + 306.36% compared with the same period last year.
Comments:
The company's profitability improved in the first three quarters, and the company's performance improved significantly in the third quarter. In the first three quarters, the company's comprehensive gross profit margin was 49.01%, year-on-year + 6.61pct. net profit rate was 3.66%, year-on-year + 3.03pct. Judging from the operating situation in the third quarter, the company's revenue in a single quarter was 375 million yuan, year-on-year + 32.16%, year-on-year growth rate + 18.27pct. net profit was 24.4736 million yuan, year-on-year + 354.18%, year-on-year growth rate + 516.77pct. In terms of single-quarter profitability, the company's comprehensive gross profit margin is 42.58%, year-on-year + 1.48pct. net profit rate is 7.15%, year-on-year + 12.54pct.
Matrix brand marketing + fine channel operation to promote revenue growth quarter by quarter this year, based on the different positioning characteristics of its brands, the company comprehensively uses matrix and multi-level marketing methods to promote the spread of brand culture and outdoor spirit. through the establishment of marketing project financial model, strengthen sales transformation, brand construction, deepen brand marketing layout. On the channel side, the company continues to optimize the profit model of single store, optimize the parameters of opening shop, and improve the success rate of opening shop. According to the data, in the first half of the year, the company's core brand pathfinder (TOREAD) business revenue was + 29.74% year-on-year + 38.00%, and the revenue of direct stores increased by 101.20%. At the same time, from the perspective of the company's overall revenue, quarter-by-quarter growth has been achieved in the first three quarters (Q1/Q2/Q3 revenue increased by 14.63% compared with the same period last year).
The chip business is steadily advancing, and G2 Touch goes deep into the automotive field. The product development company attaches importance to the research and development, innovation and application of the chip business. In the first half of the year, the R & D expense rate reached 4.06%, and in the first three quarters it reached 4.64%, a year-on-year increase in 0.67pct. During the year, the company closely combined with the development needs of domestic and foreign markets, constantly refined and expanded the product line, formed a product matrix, and accumulated stable and high-quality customer resources with advanced technology, high-quality products and efficient service. In the first half of the year, the company acquired G2 Touch and merged it on June 1. G2 Touch is working with notebook customers on low-cost solutions and active pen products. At the same time, also undertake the Samsung car touch chip research and development project, the project is scheduled to be completed by the end of 2023, has completed the first phase of research and development and sample production, the product has been verified in the end customer products, the future will gradually increase with the sales of end products.
Investment advice and profit Forecast
The company focuses on its own brand, channel expansion and fine operation are carried out at the same time, and it is expected that the results of operational upgrading will gradually appear during the year. The foundation for the development of chip business continues to be consolidated, and Beijing Core has the possibility of coordinated development with G2 Touch in the future. Under neutral expectations, we maintain the company's forecast of 0.12 EPS for 23-25, which is 64 times for 23-year PE, and maintain the "overweight" rating.
Risk hint
Repeated epidemic; channel expansion is not as expected; new business integration is not as expected; exchange rate fluctuations, goodwill impairment.