incident. On October 30, the company released its 2023 three-quarter report. In the first three quarters of 2023, the company achieved operating income of 1,560 billion yuan, YoY -13.34%; net profit of 686.61 million yuan, YoY -43.91%. In the single quarter of 2023, Q3 achieved revenue of 537 million yuan, YoY -20.60%; net profit of 20.0104 million yuan, YoY -44.73%.
Market demand for modular solutions is slowing, and the growth rate of the company's performance is under pressure. In the first three quarters of 2023, the company achieved operating income of 1,560 billion yuan, a year-on-year decrease of 13.34%; net profit of 68.661 million yuan, a year-on-year decrease of 43.91%. Q3 of 2023 achieved revenue of 537 million yuan in a single quarter, a year-on-year decrease of 20.60%; net profit of net income of 20.10,400 yuan was realized, a year-on-year decrease of 44.73%. The company focuses on wireless communication modules and IoT solutions, actively explores new application fields, supports smart medical care, and provides high-quality data collection services for medical institutions. In the first three quarters of 2023, the company's sales expense ratio was 2.71%, up 0.91pct year on year; management expense ratio was 2.55%, up 0.43 pct year on year; and financial expenses were 0.60%, down 0.03 pct year on year. The company's expense ratio remains at a fairly stable level. In the future, as the company layout is widely used in new fields, market demand picks up, which may bring new growth points to the company's performance.
Iterative upgrading of high-tech technology enhances the competitive advantage of the company's products. The company has increased investment in R&D and focused on technological iterative upgrading. In the first three quarters of 2023, the company incurred R&D expenses of 156 million yuan, an increase of 15.04% over the previous year. In Q3, R&D expenses were 52.394 million yuan in a single quarter. In 2023, the company achieved significant technological innovation results. In July 2023, according to the company's official public account, the smart cockpit solution based on MeiGe's automotive intelligent module successfully won the seat domain controller project of one of the leading new car builders in China. In the future, as the company continues to break through existing technology, build the company's product innovation points, enhance product competitiveness, or help the company's long-term performance development.
Global competitive strategies help improve performance and accelerate business expansion in overseas markets. The company's product layout is in domestic and foreign sales markets, and adheres to the principle of continuously expanding into overseas high-end markets while improving the domestic market. On October 23, according to the company's official WeChat account, the SLM750 module developed by the company has obtained dozens of official certifications from around the world, including CCC, SRRC, and CTA, and has passed certifications such as Japan's SoftBank, NTT Docomo, and Verizon. This indicates that MeiGe Intelligence can continuously and stably provide customers with high-quality, efficient, and safe services and products. In the future, as the company's competitive advantage in mainstream markets around the world is further strengthened, the company's business may continue to expand.
Profit forecasts and investment ratings. We expect the company's net profit from 2023-2025 to be 1.07/1.40/182 million yuan, the 2023-2025 EPS to be 0.41/0.54/0.70 yuan, respectively, and the PE corresponding to the current stock price is 76/58/45 times, respectively. As the company's computing power module technology continues to be upgraded and iterated, we are optimistic about the company's future performance development and maintain the “buy” rating.
Risk warning: market competition risk, wireless communication module product quality control risk, exchange rate risk, loss of core technical personnel and risk of technology leakage.