Event: Golden Orange released the first three quarters of 2023 results report, the company's operating income of 154 million yuan this year, an increase of 7.33% year-on-year, net profit of 32.7877 million yuan, an increase of 4.33%.

The performance showed a bottoming recovery trend. Judging from the single-quarter data, the company achieved operating income of 45.03 million yuan and a net profit of 7.19 million yuan in the third quarter, an increase of 18.51% over the same period last year (Q1 5.44% mai Q2Rose 11.4%) and 33.13% (Q1GV 13.63% mai Q2Rose 12.48%). The performance continued to pick up. In the first three quarters, the company's gross sales margin was 60.11% (year-on-0.01pct) and net sales margin was 21.22% (year-on-0.53pct). Due to the increase in R & D and market development investment during the reporting period, the increase in related expenses and the increase in share payment fees due to equity incentives, the net profit of the current period was suppressed to a certain extent.

Companies with consumer electronics bottoming out are expected to benefit. According to the company's 22-year results, the company's downstream applications accounted for a combined 37% of 3C consumer electronics and PCB/ semiconductors. The year-on-year decline in global smartphone shipments narrowed to-7.75% in September from-14.59% in March to-7.95% in the third quarter from-29.32% in the first quarter. In September, the consumer electronics market ushered in the traditional peak season, Huawei and other terminal manufacturers released new products to lead the consumer electronics market to pick up, the industry cycle is expected to hit bottom and rebound, the company is expected to fully benefit.

The product system is constantly improving. In recent years, the company continues to invest in high-precision galvanometer products, has launched Invinscan, G3 series and other high-performance galvanometer products, the performance indicators have reached the advanced level of the same level of products, has been recognized by customers, hardware products gradually began to enter the domestic market.

In the future, with the gradual release of production capacity, the company is expected to achieve full coverage of software and hardware integrated product series, providing customers with an one-stop product platform and forming a new growth pole of hardware products.

Corporate profit forecast and investment rating: we downgrade the 2023-2025 net profit to 0.47,0.76 and 92 million yuan respectively, corresponding to EPS 0.45,0.74 and 0.90 yuan respectively. Maintain the "highly recommended" rating.

Risk hint: the company's R & D project progress is not as expected, the company's market expansion is not as expected, and the company's cost is relatively high, resulting in lower-than-expected performance.