Events:
The company released its three-quarter report in October 2023, and its operating income in the first three quarters was 225 million yuan, 16.53% of the same period last year. The return net profit is 19 million yuan,-4.60% compared with the same period last year, and the basic earnings per share is 0.25 yuan.
Revenue and gross profit margin increased in a single quarter, and government subsidies affected the return of net profit in the third quarter of 2023. In the third quarter of 2023, the company's revenue was 91 million yuan, an increase of 9.53% over the same period last year. The sales gross profit margin was 41.26%, an increase of 1.36pct over the same period last year, and both revenue and gross profit margin increased. In the third quarter, the company's expenses during the period were 24 million yuan, an increase of 2.85% over the same period last year, and the overall expenses remained stable during the period. The government subsidy included in the profits and losses of the current period was 369000 yuan, down significantly from 2.7767 million yuan in the same period last year. Due to the decrease in government subsidies compared with the same period last year, the company's quarterly net profit fell by 32.36%.
Investment in R & D continues to increase
The company continues to increase its research and development efforts. In the first three quarters, the company spent 35 million yuan on R & D, 11.95% of the same period last year, indicating that the company is actively improving its R & D capability, which is conducive to long-term development in the future. In the first half of the year, the number of R & D personnel was promoted to 81, an increase of 18 over the same period last year; the salary of employees was 15 million yuan, an increase of 58.48% over the same period last year, with a large increase; and there were 6 projects under study, including Leo satellite detection and radar simulation.
Earnings forecast, valuation and rating
Taking into account the slow pace of downstream demand release, we adjust the company's operating income for 2023-2025 is estimated to be RMB 386 million (RMB 474 million), with corresponding growth rates of 14.76%, 22.95%, 21.99%, and net profit of RMB 0.53 million, respectively (original value of RMB 0.70, 0.99 million). The corresponding growth rate is 5.34%, 28.71%, 31.93%, respectively, and the CAGR for 3 years is 21.39%. With reference to comparable companies, the company will be given 60 times PE in 2024, with a target market capitalization of 4.101 billion yuan and a corresponding share price of 56.38 yuan, maintaining an "overweight" rating.
Risk Tips:
Downstream demand is less than expected risk; new product research and development is less than expected risk; industry competition aggravates risk.