Event: the company released its third-quarter earnings report for 2023.
The company. In the first three quarters, the company realized operating income of about 5.64 billion yuan (yoy + 14%) and net profit of 2.03 billion yuan (yoy-0.5%). In the third quarter, the company achieved an operating income of 1.91 billion yuan (yoy-6% quotation QOQ-13%) and a net profit of 640 million yuan (yoy-24% meme Qoq-21%). Affected by the complex economic environment, weak consumer market and insufficient demand in subdivided industries this year, the company's revenue still increased in the first three quarters compared with the same period last year.
The production capacity of smart card chip business has been restored, the scale of shipments has grown rapidly, and the share of revenue has increased significantly. Smart card chip production capacity shortage last year, this year capacity release, the company's shipping scale growth is rapid, prices remain at a good level. In the past two years, it has continued to expand in overseas markets, and the contribution of overseas revenue has been continuously increasing. in addition to SIM cards, the proportion of bank cards is also gradually increasing. the company judges that the growth momentum of overseas revenue is expected to continue and is expected to maintain good growth in the second half of the year. The smart security chip business achieved 1.46 billion revenue (yoy + 82 per cent) and a net profit of 190 million in the first half of the year, while gross profit margin continued to increase from a high base in 2022 to 49.32 per cent.
The special integrated circuit business has the advantage of strong customer resources and the ability of sustainable growth and development. The company will gradually transform into a platform enterprise, provide systematic and comprehensive chip products, continue to invest in new technologies, new fields and platform construction, and successively launch clock chips, analog-to-digital converter chips, new power technology and so on. The platform layout will help to enhance the company's ability to resist risks and maintain growth in the face of industry fluctuations. The revenue of the special integrated circuit business in the first half of the year was nearly 2.2 billion, an increase of about 11% over the same period last year, and the gross profit margin was 77.54%, basically stable. The company continues to launch high-value products, which is expected to improve the product structure and continue to invest in efficiency and cost control.
We forecast that the company's earnings per share for 23-25 years are 3.22,4.20,5.19 yuan respectively (the original forecast for 23-24 years is 4.65,6.35, mainly due to the reduction of revenue and gross profit margin of integrated circuits and quartz crystals). According to the 23-year average PE valuation of comparable companies, we give a price of 103.04 yuan and maintain the overweight rating.
Risk hint
The risk of price decline of special integrated circuit products; the increase of market share of special integrated circuit products is less than expected; and the growth of smart security chip business is not as high as expected.