Incidents:
The company released its report for the third quarter of 2023. In the first three quarters of 2023, the company achieved revenue of 422 million yuan, +19.3%; net profit of 135 million yuan, +20.1%; net profit after deduction of 128 million yuan, +25.7%, of which 2023Q3 achieved revenue of 150 million yuan, -1.8%; net profit of 41 million yuan, -12%; net profit after deduction of 39 million yuan, -12.1% year-on-year.
Revenue side: 23Q3 revenue of 150 million yuan, -1.8% year-on-year, +6.4% month-on-month. In 23Q3, the company achieved revenue of 150 million yuan, which was stronger month-on-month.
Gross profit margin: 23Q3 gross profit margin 51.25%, y-0.86pct year-on-year, -3.05pct month-on-month. 23Q3 The company's gross margin was under pressure compared to the same period last month.
Profit side: 23Q3 net profit was 41 million yuan, -12.01% year-on-year and -10.16% month-on-month.
The 23Q3 company's net profit was under pressure month-on-month, mainly due to the 23Q3 financial expense ratio +3.17pct/+6.76pct month-on-month.
Based on cold forging technology, we continue to expand new products. Relying on technical and management advantages in cold forging technology, mold design, equipment automation, etc., the company continues to expand the application fields of cold forming technology: 1) Three electric system components. The company actively expands the application of cold forging technology in lithium battery precision parts and electric drive system precision parts; 2) thermal management. According to the company's 2023 semi-annual report, the company has completed the design, development and prototype manufacturing of automotive carbon dioxide heat pump systems and integrated thermal management module products, and is actively promoting them to interested customers. The new products all achieve advantages such as safety, reliability, weight reduction, and cost intensity through design optimization and production process improvement. It is expected that in the future, customers will be rapidly developed and become a new growth point for the company.
Investment recommendations and profit forecasts: The company's 2023-2025 operating income is estimated at 6.3, 7.6, and 890 million yuan respectively, and net profit of 190 million yuan, 220 million yuan, and 260 million yuan respectively. Corresponding to the current market value, PE is 16, 13, and 11 times in that order. It was covered for the first time, and a “increase in holdings” rating was given.
Risk warning: There is a risk of macroeconomic fluctuations, raw material prices have risen sharply, downstream NEV sales have fallen short of expectations, new production capacity investment has fallen short of expectations, and progress in new product development has fallen short of expectations.