Incidents: The company's operating income for the first three quarters of 23 million yuan was 259 million yuan, +18.82% over the same period; net profit of the mother was 82 million yuan, net profit after deducting non-return net profit of about -89 million yuan. 23Q3 revenue was 103 million yuan, +37.28% year over year, +14.68% month on month; net profit was 29 million yuan, -134.54% year on year, +12.25% month on month.
The increase in sales volume in 23Q3 led to a month-on-month recovery in revenue, and gross margin declined year-on-year and improved month-on-month. The company's Q3 revenue was 259 million yuan, +18.82% year-on-year, and the company's Q3 revenue increased +14.68% month-on-month, mainly due to increased market demand, which led to a significant increase in sales volume. The company's Q3 gross profit margin was 12.43%, -10.5% year-on-year, +1.6% month-on-month. This was due to weak domestic and foreign terminal markets, intense industry competition, and lower sales prices, leading to lower gross margin. Currently, the global MEMS acoustics market is still growing. According to Infineon data, the global MEMS microphone market in 2021 was 1.07 billion euros, with huge market space; at the same time, Infineon predicts that the market will maintain a growth rate of around 10% in 2022-2024, so we are still optimistic about the company's future business expansion in the MEMS field.
At the same time, the company's R&D investment in 23Q3 increased significantly. The 23Q3 company's R&D expenses were 20 million yuan, +5.69% over the same period last year.
23Q3 The company's net profit was 29 million yuan, -134.54% year-on-year, +12.25% month-on-month, and net profit after deducting non-return net profit of about -32 million yuan.
Deeply cultivate the consumer sector, downstream customers are rich in resources, and vehicle specifications are expanding smoothly. The company Silicon Mac has introduced many well-known terminal customers in the mobile phone field, including Huawei, LG, Samsung, and Nokia. At the same time, the company's call microphones and noise-canceling microphones for ENC and ANC are also cooperating with manufacturers such as Huawei, Xiaomi, and OPPO. In the automotive field, the company has launched an analog and a digital MEMS silicon microphone. Both models meet the reliability requirements of AEC-Q100/Q103. We expect that future downstream recovery will continue to drive demand growth, and revenue is expected to continue to increase month-on-month.
Investment advice: The company is a leader in multiple MEMS categories in China, with a strong accumulation of products, technology and customers. The company's acoustic MEMS business is rich in customer resources, and 23Q4 is expected to benefit from the recovery of the downstream consumer electronics industry; the pressure MEMS business has been deeply involved in the medical field for a long time and is gradually expanding the automotive business; inertial MEMS targets the consumer sector, and size reduction is a product highlight. We expect the company to achieve revenue of 3.8/5.4/690 million yuan in 2023-2025 and net profit of 0.9/0.3/0.6 billion yuan, corresponding to PE in 24/25, 102/44 times, respectively.
Risk warning: R&D falls short of anticipated risks, increased industry competition risks, and downstream demand falls short of anticipated risks