Event: on October 27, Yonggui Electric Appliance released a report on the third quarter of 2023. In the first three quarters of 2023, the company realized revenue of 1.011 billion yuan,-3.40% compared with the same period last year; realized net profit of 90 million yuan,-23.52%; and deducted non-return net profit of 79 million yuan,-28.74% of the same period last year. Q3 alone realized revenue of 332 million yuan, year-on-year-9.75%, month-on-month ratio-7.76%; realized return-to-mother net profit of 21 million yuan, year-on-year-42.11%, month-on-month ratio-38.28%, deducted non-return net profit of 16 million yuan,-55.52% year-on-year, month-on-month ratio-49.56%.
Performance is under short-term pressure and looking forward to a recovery. The company's 23-year Q1-Q3 achieved revenue of 1.011 billion yuan,-3.40% compared with the same period last year. The company's revenue declined in the first three quarters compared with the same period last year, which we believe is mainly due to the decline in revenue in the rail and industrial sector, where 23H1 revenue is-11.45% year-on-year. In terms of profitability, the company's 23Q3 gross profit margin is 30.15%, year-on-year + 0.64pcts, month-on-2.86pcts. On the expense side, the sales / management / R & D expense rates of the company's 23Q1-Q3 are 8.1%, 6.42%, 8.88%, respectively, compared with the same period last year + 1.75pct/-0.09pct/+1.61pct.
Liquid-cooled overcharge batch shipment, waiting for growth. The company's new energy vehicle products include high-voltage connectors, charging / changing interfaces and wire harnesses, AC / DC charging guns, high-power liquid-cooled DC charging guns, etc., which have entered the customer supply chains of Huawei, Cyrus, BYD, Geely, Great Wall, Chery and so on. In the high-power liquid-cooled overcharged DC gun products, the company has independent intellectual property rights, can achieve a maximum current of 600A, rated voltage 1000V charging scene, has formed a batch supply. In addition, the company's liquid-cooled CCS2 charging gun has passed CE, CB, Toner V verification, laying the foundation for the development of foreign markets. At the industry level, Huawei officially announced on October 4 this year that the all-liquid-cooled overcharging station built by Huawei Digital Energy during the National Day has been officially launched in many places along the southern Sichuan-Tibet line. The fully liquid-cooled overcharging station launched this time has three major advantages: faster charging, "one kilometer per second"; high reliability and long service life of equipment; and matching all models, charging immediately when you come to the car. As the core supplier of Huawei + ask, the company is expected to be the first to benefit.
Downstream multiple layouts to promote high-speed connectors. The company has laid out seven categories of products in the field of rail transit, and has established stable cooperative relations with China Railway Corporation, Railway Corporation and a number of urban subway operating companies. The field of special connectors has high barriers and high gross profits. at present, the company has formed a supply in 11 special groups. In addition, the company has established a high-speed connector research institute to actively promote the development of Fakra, Mini-Fakra, HSD and Ethernet connectors; MPO/MTP high-density optical fiber standard connectors produced by its subsidiary Olympic Union Optoelectronics will also be gradually extended from military to civilian data centers and optical modules.
Investment suggestion: taking into account the pressure on the company's rail traffic business in the first three quarters, we downgrade the company's profit forecast, and it is expected that from 2023 to 2025, the revenue will be RMB 17.31 billion 25.42 trillion, and the corresponding net profit will be RMB 2.63 trillion, corresponding to the times of PE in 50-29-21. The company is the leader in the domestic rail traffic connector industry, and downstream areas continue to expand, maintaining the "recommended" rating.
Risk tips: industry competition aggravates the risk; new product research and development is not as expected; customer introduction is not as expected.