Event: The operating income of the Company in the first three quarters of 23 years was RMB 1.654 billion yuan,+1.69% year-on-year; the net profit attributable to the parent company was RMB 54 million yuan,-54.60% year-on-year, and the net profit deducted from non-parent company was about RMB 54 million yuan,-54.53% year-on-year. 23Q3 operating income 699 million yuan, year-on-year +7.50%, month-on-month +37.7%; net profit attributable to parent 0.23 billion yuan, year-on-year-43.98%, month-on-month +17.03%.
The company's 23Q3 revenue month-on-month high increase, year-on-year growth rate turned positive. Q3 operating income of the company was 699 million yuan,+7.50% year-on-year. The semiconductor industry is in a downward cycle, downstream demand presents a structural differentiation trend, consumer electronics is relatively weak, and the company focuses on the new energy automotive electronics field, demand is relatively good, so Q3 revenue month-on-month growth is significant. The R & D investment of the company increased significantly. The R & D expenditure of the company in 23Q3 was RMB 17 million yuan, 30.7% year-on-year and +19.0% month-on-month. 23Q3 Company's net profit from parent company was RMB 23 million yuan, year-on-year-43.98%, month-on-month +17.03%.
The self-developed IC business is progressing smoothly, and the gross profit margin is repaired quarterly. The company's products cover a wide range, involving automotive lighting, automotive cockpit, automotive passive devices and automotive chassis and other four areas. Among them, the company's electronic components distribution business performed outstandingly, with operating income of 1.46 billion yuan, basically flat with the same period last year; in the third quarter, the electronic components distribution business realized operating income of 620 million yuan, month-on-month +41.43%. The company's self-developed IC business performance is outstanding. In the first three quarters of 23 years, the operating income is RMB 190 million yuan, year-on-year +31.93pcs; the operating income of 23Q3 is RMB 7,300 yuan, month-on-month +17.30pcs, the gross profit rate is 40.05%, and the gross profit rate of self-developed business is 1.6pcs higher than that of 23H1.
The customer base of automobile electronics is deep, and the self-developed IC business is stable and good. In the long run, the current trend of motorization, intelligence, networking and sharing in the automobile industry is not expected to change, so automobile electronics will still be a blue ocean, and the use of electronic components for bicycles will rise. We believe that the boom in the automotive electronics industry in 23Q4 and 2024 will continue to improve, driving up demand for related products. At the same time, benefiting from the long-term layout and expansion of the company in the field of automobile electronics, the company's automobile analog IC products have certain first-mover advantages, and have been widely recognized by the market at home and abroad such as BYD, Geely, Xiaopeng and Weilai. We believe that in the future, the company's self-developed IC business will show a steady and good development trend, and it is expected to see further improvement.
Investment suggestion: We expect the company to realize revenue of 24.1/28.8/34.2 billion yuan from 2023 to 2025, net profit of 0.9/1.9/250 million yuan, corresponding PE of 41/20/16 times respectively.
Risk hint: industry competition aggravates risk; downstream demand is lower than expected risk; inventory water level is high risk