Event: the company released its Triple report for 2023. In the first three quarters of 23, the company realized operating income of 813 million yuan, + 4.20% compared with the same period last year, and net profit of 128 million yuan, + 24.94% compared with the same period last year. In 23 years, Q3 company achieved operating income of 310 million yuan, year-on-year-0.64%, month-on-month + 10.07%; net profit of 55 million yuan, + 16.72%, month-on-month + 24.67%.

Overall profitability in the first three quarters of 23 was solid. In the first three quarters of 23, the company's comprehensive gross profit margin was 28.80%, year-on-year + 0.13pct, and comprehensive net profit margin was 15.75%, year-on-year + 2.61pct. In 23, the comprehensive gross profit margin and net profit rate of Q3 company were 30.04% and 17.89% respectively, year-on-year-0.29pct/+2.66pct, month-on-month + 1.27pct/+2.09pct, government subsidies and other non-recurrent profits and losses contributed to profits to a certain extent, and the company's overall profitability was robust.

The application of automotive electronic products continues to expand and is expected to maintain rapid growth in the fourth quarter. The company pays close attention to the new opportunities brought about by the rise of independent automotive brands and automotive electrification and intelligence, focusing on new, incremental and technologically demanding applications, and providing solutions, such as on-board sports screens and hidden door knobs. We expect the company's automotive electronics business to grow rapidly in the third quarter of 2023. With the continuous improvement of the penetration of new energy vehicles and the continuous emergence of intelligent innovative applications, we believe that the company's automotive electronics business will usher in more development opportunities in the future.

Apple Inc Vision Pro release, optimistic about the company's products in the field of XR application prospects. The company participates in more and more projects and fields, designing industry solutions of "gearbox + motor + control" for customers in different fields. In early June 2023, the release of Apple Inc Vision Pro brought important increments to the XR industry. The company actively lays out the XR field, and its micro transmission system can be used in scenarios such as pupil distance adjustment drive system, head automatic loosening device, magnetic induction system, smart glasses hidden miniature loudspeaker and so on. The company pays close attention to the changes and development of relevant markets and technologies, and actively develops customers and improves customer coverage.

Investment suggestion: the estimated return net profit for 23-25 is RMB 1.90,280,000,000 yuan, compared with the same period last year, with a year-on-year rate of + 26.0% plus 47.4% plus 32.8% for PE, which corresponds to 66.2pm 44.9max 32.9, maintaining the "Buy" rating.

Risk tips: raw material prices fluctuate; new product expansion is not ahead of schedule; consumer market recovery is not as expected.