Events:
The company released its three-quarter report in October 2023, and its operating income in the first three quarters was 170 million yuan, 14.30% of the same period last year. The net profit of homing is 40 million yuan,-44.07% compared with the same period last year, and the basic earnings per share is 0.26 yuan.
The gross profit margin remains high and the net profit margin decreases.
In the first three quarters of 2023, the gross profit margin of the company's products was 89.69%, a decrease of 1.03pct compared with the same period last year, and the gross profit margin continued to maintain a high level. Affected by the continuous resource investment in R & D investment, market development, supply chain system, quality management, talent construction, office environment, etc., the cost during the company period was 96 million yuan, an increase of 40 million yuan compared with the same period last year, a large increase. Affected by the rapid growth of fees during the period, the company's net interest rate was 23.43%, a year-on-year decline of 24.45pct, a larger decline.
Research and development efforts have been intensified, and new products have been launched continuously.
In the first three quarters of 2023, in order to maintain the leading edge of product technology, the company expanded its R & D team, increased employees' salaries and investment in R & D materials and taping, and R & D expenses increased by 98.79% compared with the same period last year. Benefiting from the increased investment in research and development, in the first half of the year, the company developed a variety of terminal RF front-end chips to meet customers' needs for miniaturization, high efficiency, low power consumption and low cost; in terms of high-speed and high-precision ADC/DAC chips, the company's products have obtained substantial applications in airborne digital phased array radar and other fields; and also made substantial progress in electronic countermeasures, spaceborne payloads and other scenarios.
Earnings forecast, valuation and rating
Taking into account the slowdown in the pace of downstream demand release and order delivery, we adjust the company's operating income forecast for 2023-2025 to 2.90max 367pm 462 million yuan (the original value is 3.59pm 4.94 / 650 million yuan), and the corresponding growth rate is 19.55% 26.69% 25.78% respectively. The net profit of homing is 1.22 bonus 1.58 million yuan (the original value is 1.51 million yuan), with a corresponding growth rate of 13.14 percent, 29.25 percent, 27.89 percent, and 1.32 yuan per share, respectively, and the 3-year CAGR is 25.01 percent. With reference to comparable companies, the company will be given 60 times PE in 2024, with a target market capitalization of 9.452 billion yuan and a corresponding share price of 61.82 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.