The company released the 233 Quarterly Report. 23Q1-3 revenue was 1.91 billion dollars, an increase of 20.3%; 23Q1/Q2/Q3 revenue was 4.0/73/790 million, respectively, an increase of +11.6%/+13.3%/+32.9%, respectively. The net profit of 23Q1-3 was 95 million yuan, an increase of 731.1%, and the net profit of 23Q1/Q2/Q3 was 0.15/0.33/47 million respectively, +325.7%/+678.7%/+93.9%, respectively. Q3 revenue and performance increased beautifully, revenue from Q1-Q3 contract projects increased, and profitability increased significantly.
Profitability has been gradually restored, and performance has entered the release stage.
The company's gross margin for the first three quarters was 27.1%, an increase of 4 pct. The Q1/Q2/Q3 gross margin for the single quarter was 27.3%/26.2%/27.9%, respectively. The gross margin for the single quarter was stable, Q3 increased 2.15 pct year on year, and profitability continued to recover. Net interest rates for the first three quarters were 5%, up 4.27pct. Q1/Q2/Q3 single-quarter net interest rates were 3.9%/4.6%/5.9%, respectively. The net interest rate for the single quarter increased month-on-month, and the Q3 net interest rate also increased 1.86pct.
Expense control is effective, and sales expenses are being invested more.
The sales/management/R&D/finance expense ratio for the first three quarters was 12.21%/3.95%/2.51%/0.02%, respectively, and +0.28pct/-0.6pct/-0.82 pct/+0.53pct year-on-year respectively. The Q3 sales/management/R&D/finance expense ratio was 13.31%/3.26%/2.21%/-0.05%, respectively, which was +1.97pct/-0.9pct/-1.03pct/+0.19pct, respectively. Sales expenses increased in a single quarter.
Maintain profit forecasts and maintain an “increase in holdings” rating.
The company implements the development strategy of “intelligent manufacturing, intelligent management and intelligent products”, continuously improves the product structure, and constructs a multi-channel and multi-category marketing system; continuously optimizes the trial operation status of the Changtian production base, is committed to increasing the production capacity of fund-raising projects, promoting the construction of the Sichuan production base, further reducing costs and increasing efficiency; building and strengthening the marketing service system, increasing the development of engineering channel customers, and carefully managing the repayment risk of engineering channel customers. Considering the pressure on industry demand and adjusting the 23-year profit forecast, we expect the company's net profit for 23/24/25 to be 1.72/2.57/329 million yuan (originally estimated at 2.1/27/3.4 billion yuan), EPS at 0.4/0.6/0.8 yuan/share, and corresponding PE at 26X/17X/14X respectively, maintaining the “increase in holdings” rating.
Risk warning: if there is a risk of fluctuations in the macroeconomic cycle; risk of increased competition in the industry and market; risk of fluctuations in the real estate industry; risk of dealer management; risk of increase in accounts receivable and risk of bad debts; risk of falling gross margin; risk of product imitation or infringement, etc.