The company published three quarterly reports. In 2023 Q1-Q3, the company achieved operating income of 415 million yuan (+6.95% year-on-year) and net profit of 54 million yuan (-16.16% year-on-year). Looking at a single quarter, the revenue for Q3 2023 was 169 million yuan (+21.57% yoy, +11.61% yoy), and net profit was 27 million yuan (+6.67% yoy). +13.52% month-on-month).

Innovation in high-end consumer electronics business leads high-quality development. From January to September 2023, the high-end consumer electronics sector achieved a total revenue of 340.2025 million yuan, an increase of 1.54% over the previous year, of which revenue in the third quarter was 14,0049 million yuan, an increase of 20.06% over the previous year, and an increase of 12.04% over the previous month; the mobile phone and related accessories, notebook computers and related accessories business maintained a double month-on-month growth trend in the third quarter. On the one hand, with the arrival of the traditional peak sales season and improved terminal demand, the company's product shipments continued to rise. On the other hand, the company leverages differentiated innovative processes and leading technical advantages to expand incremental volume and tap potential to provide innovative coating solutions for major domestic and foreign customers, such as new products.

The passenger car business is steadily progressing and maintaining a good momentum of development. From January to September 2023, the passenger car sector achieved a total revenue of 66.5697 million yuan, an increase of 32.17% over the previous year, of which revenue in the third quarter was 26.626 million yuan, an increase of 23.25% over the previous year and an increase of 14.02% over the previous year. The company continues to deepen cooperation with many terminal and auto parts manufacturers. While concentrating on the interior coating market, the company makes every effort to promote the smooth implementation and mass production delivery of exterior coating projects, laying a solid foundation for accelerated development of subsequent business.

Profit forecasting and investment ratings. We expect the company's net profit to be 80 million yuan, 139 million yuan, and 208 million yuan respectively from 2023 to 2025, and EPS to be 0.72 yuan, 1.25 yuan, and 1.86 yuan respectively. According to BPS of 11.95 yuan and 6.0-7.0 times PB in 2023, a reasonable value range of 71.70-83.65 yuan was given, maintaining the “superior to market” rating.

Risk warning: Project construction progress fell short of expectations; product prices fluctuated greatly.