Dongwei Technology released the first three quarters of the report. In the first three quarters, the operating income was 731 million yuan, up 7.10% from the same period last year; the net profit from home was 149 million yuan, up 2.13% from the same period last year; of which, the operating income in the third quarter was 232 million yuan, down 14.28% from the same period last year; and the net profit from home was 46.85 million yuan, down 11.35% from the same period last year.
Revenue grew steadily in the first three quarters, while Q3 revenue growth slowed down. The operating income in the first three quarters was 731 million yuan, an increase of 7.10% over the same period last year. Bing Q3 revenue was 232 million yuan, down 12.34% from the previous month.
The cost pressure is small, and the gross profit margin is higher than the same period last year. The operating cost of Q3 was 122 million yuan, down 24.59% from the same period last year and 20.59% from the previous month. Q3 gross profit margin 47.19%, year-on-year increase in 7.21pct, month-on-month increase in 5.48pct, cost control is effective.
The cost side is under short-term pressure and the net interest rate is robust. Q3 financial expenses and management expenses increased significantly compared with the same period last year, and the overall expense rate increased by 4.19pct to 23.3% compared with the same period last year. The superimposed gross profit margin increased, the net profit margin remained robust, and the Q3 net profit rate was 20.2%, which increased 0.67pct compared with the same period last year and month-on-month.
The proportion of inventory to assets is relatively stable. The company's inventory was 397 million yuan, Q3 increased by 7.423 million yuan, and inventory accounted for 16.20% of assets, which was basically stable than the medium report.
The net cash flow generated by operating activities is greatly affected by acceptance and payment of goods. The net cash flow generated by Q3 operating activities was-45.286 million yuan, down 407.56% from the same period last year, mainly due to the increase in acceptance received by the company in the first three quarters and the increase in payments to suppliers.
Profit forecast and investment advice: we expect the company's net profit from 2023 to 2025 to reach 2.24 / 4.18 / 572 million yuan. With reference to comparable companies and taking into account the company's newly expanded track from 0 to 1, we value the company's 24-year return net profit at 35 times PE, with a reasonable value of 63.71 yuan per share and maintain a "buy" rating.
Risk tips: composite copper foil progress is not as expected; PCB industry boom downside risk; gross profit margin downside risk.