Event: in the first three quarters of 2023, the company achieved a total revenue of 1.101 billion yuan, an increase of 15.02% over the same period last year; a total net profit of 18.08 million yuan, an increase of 68.44% over the same period last year; and a total deduction of 9.13 million yuan, an increase of 506.35% over the same period last year. The company's third-quarter revenue was 478 million yuan, up 5.11% from the same period last year; the net profit from home was 62.89 million yuan, up 2.70% from the same period last year; and the net profit from non-return was 60.67 million yuan, up 7.86% from the same period last year.
Steady revenue growth: the company's revenue in the first three quarters increased by 15.02% compared with the same period last year. In the face of complex macro-economy, the company still maintained steady revenue growth in the first three quarters. Q1 revenue in 2023 was 225 million yuan, up 19.17% over the same period last year. Q2 revenue increased by 19.17%, Q2 revenue increased by 26.86%, Q3 revenue increased by 5.11%. In terms of quarterly net profit, Q1 net profit in 2023 was-58.42 million yuan, Q1 net profit in 2022 was-42.98 million yuan, and Q2 net profit was 13.6 million yuan, an increase of 280.66% over the same period last year. Q3 net profit increased by 2.70% over the same period last year.
Investment in R & D continued to increase: in the first three quarters of 2023, the company's sales expense rate was 18.85%, an increase of 0.56% over the same period last year; the management expense rate was 19.41%, a decrease of 0.51% over the same period last year; and R & D expenditure in the first three quarters of 2023 was 310 million yuan, an increase of 42.41% over the same period last year. The R & D expenditure rate was 28.15%, an increase of 5.41% over the same period last year. The company's gross profit margin in the first three quarters of 2023 was 64.49%, an increase of 2.86 percentage points over 2022.
The equity incentive plan demonstrates the company's confidence in the development of the company: in September 2023, the company issued a 2023 restricted stock incentive plan, with a total of 26.5 million restricted shares to be granted, accounting for 3.53% of the company's total equity at the time of the announcement of the draft incentive plan. The total number of incentives awarded for the first time is 791, including the company's directors, senior managers and core technology (business) backbone. The assessment year belongs to three fiscal years from 2023 to 2025. The assessment target is based on the average net profit from 2020 to 2022 (based on the net profit attributable to the shareholders of the listed company after deducting non-recurring profits and losses in the audited consolidated statement), and the growth rate of net profit in 2023-2025 is not less than 60,100 and 150%, respectively. That is, the non-return net profit deducted from 2023 to 2025 is not less than 3.04,3.81 and 476 million yuan respectively, of which the year-on-year growth rate of non-return net profit in 2023 is not less than 33%.
Earnings forecast, valuation and rating: taking into account the impact of macro-economy on the demand of the company's downstream customers and the lower-than-expected progress of Xinchuang, the company's revenue forecast for 23-25 is lowered to 24.43320amp 4.070 billion yuan, compared with the last forecast-7%, 13% and 12%. The company's 23-25 homing net profit forecast is reduced to RMB 350,000,000, compared with the previous forecast of-16%, which is 25%, corresponding to the PE of 29x/22x/16x, and maintains the "buy" rating.
Risk hint: financial integration, digital procurement business development is not as expected.