Overview of events
On October 31, 2023, the company released its Q3 quarterly report for 2023. 2023Q1-Q3 realized operating income of 1.41 billion yuan, an increase of 207.59% over the same period last year, and a net profit of 103 million yuan, an increase of 6.87% over the same period last year.
Analysis and judgment:
Q1-Q3 's performance is in line with expectations, and power business is steadily on the rise.
On October 31, 2023, the company released its Q3 quarterly report for 2023. 2023Q1-Q3 realized operating income of 1.41 billion yuan, an increase of 207.59% over the same period last year, and a net profit of 103 million yuan, an increase of 6.87% over the same period last year. Judging from Q3 alone, the company's revenue was 464 million yuan, an increase of 173.21% over the same period last year, and the month-on-month decrease of 6.9%. Q3 realized a net profit of 42 million yuan, an increase of-23.26% over the same period last year, and an increase of 71.79%. We judge that the growth rate of the company is in line with our expectations, and the large-scale expansion of the company's revenue is mainly due to the impact of the merger of Platinum Pacific electronic statements. The decline in homing net profit is in line with consistent expectations, and we judge that the essential reason is that the company's power business is expanding rapidly. In addition, the new energy business company is actively expanding new energy photovoltaic power supply, data center power supply, site energy power supply and other power business. With the gradual improvement of the company's business sector in the future, the company's homing net profit is expected to increase rapidly.
Consumer electronics power supply domestic brand breakthrough, data center power supply ready to send a wide range of products, the company's products include intelligent photovoltaic, data center, energy storage power supply, charging pile, power module, consumer electronics, involving intelligent photovoltaic inverter, household energy storage power supply, household charging pile, USB, power module, adapter and other products. We judge that the cooperation between Yada Electronics (Luoding) and Huawei is progressing smoothly. According to the news from Global tech and IT Home on January 23, 2023, Huawei Terminal Co., Ltd. has applied for a new mobile phone charger, model HW-200440C00, which is manufactured by Boshuo Technology (Jiangxi) Co., Ltd. and Yada Electronics (Luoding) Co., Ltd., which supports the 88W fast charge of 20V 4.4A and is also compatible with the previous mainstream 66W/40W fast charge of Huawei. We judge that the domestic mobile phone brand taking Huawei M M0 ATE60 as an example presents a breakthrough mode, and the domestic power contract factory is expected to benefit. In addition, the iterative upgrade of fast charging is expected to increase the market sales of mobile phone chargers, while the unit price of mobile phone chargers increases rapidly. At the same time, the company's data center power supply is ready to start, the industry side benefits from AIGC thin hair and the accelerated construction of China's intelligent computing center, Huawei is expected to build the second pole of global computing power, high-end server power supply in the data center is expected to grow rapidly, and at the same time, with the same logic as consumer electronics power supply, AI server power supply is expected to rise in volume and price in the future.
"sawing + power supply" two-wheel drive, sawing leading effect of the company was founded in 2003, has a long history. The company's first main business is metal processing sawing tool research and development, production, sales and metal sawing technical services, the main products are bimetal band saw blades. At present, the sales volume of bimetal band saw blades ranks first in China and in the top three in the world. We judge that the high-speed steel metal is actually a high-end process manufacturing, and the bimetal band saw blade is actually the "craftsman's hand" of the modern manufacturing industry, which has a wide range of applications, is less affected by the fluctuation of a single industry, and has a significant advantage in the leading effect. to provide stable performance support for the company. The company completed the major asset reorganization of Platinum Electronics at the end of September 2022, realizing the double main business layout of "sawing + power supply". The sawing industry is developing steadily, the domestic substitution is gradually released, the industry is gradually developing in the direction of "high precision, high efficiency, high reliability and specialization", the company is cooperating to develop the "internationalization" strategy, and the overseas market is expected to maintain high-speed growth. and throughout history, the company conforms to the internationalization strategy, and the overseas share continues to increase.
Investment suggestion
The company has a leading advantage in sawing and power supply, and will benefit from logic such as the leading effect of sawing business and the increase in the proportion of overseas business, consumer electronics rapid volume and energy storage, photovoltaic, data center power and other related factors. The revenue forecast of the maintenance company in 2023-2025 is 22.493,3634,4770 million yuan, the net profit forecast of the return of the company in 2023-2025 is 1.58 million, and the EPS forecast of the company in 2023-2025 is 0.63, 1.12 and 1.47 yuan. On October 31, 2023, the total market capitalization was 6.232 billion yuan, corresponding to the stock price of 24.77 yuan, corresponding to the PE of 39.5, 22.0, 16.8 times, still firmly optimistic, maintaining the buy rating.
Risk hint
1) the risk of international trade friction; 2) the risk of fluctuation of raw material prices; 3) the risk of relative concentration of customers; 4) the risk that the process is lower than expected.