Event: The company announced the “Report for the Third Quarter of 2023”.
Benefiting from the gradual recovery of consumer electronics and other sectors, Q3 revenue continued to grow month-on-month. From January to September 2023, the company achieved revenue of 296 million yuan, -26.34% year-on-year; net profit of 33 million yuan, -79.47% year-on-year. Looking at a single quarter, 2023Q3 achieved revenue of 115 million yuan, +6.07% year-on-year and +9.76% month-on-month; net profit of 0.4 billion yuan, -90.11% year-on-year, and -78.32% month-on-month.
With the layout of characteristic simulation products, the company's gross margin has always maintained a high level. From January to September 2023, the company achieved a gross profit margin of 48.87%, -7.81pct; net profit margin was 11.18%, year-on-year -28.95pct.
Looking at a single quarter, the gross margin of 2023Q3 was 48.22%, -5.42pct year-on-year, -1.84pct; the company's net margin was 3.57%, y-o-34.75pct, and -14.51pct month-on-month.
R&D personnel continued to be introduced, and R&D expenses continued to grow rapidly year over year. From January to September 2023, the company's R&D expenses were 97 million yuan, +113.47% over the same period last year, and the R&D cost rate was 32.74%. The company continues to expand the layout of application fields, increase direct investment in R&D projects and increase employee remuneration and other R&D expenses corresponding to the introduction of outstanding R&D technical personnel. As of September 30, 2023, the number of R&D technicians in the company was +73.15% over the same period last year.
The continued introduction of new products in the mobile phone and laptop sector is expected to drive the company's revenue growth. The company's newly launched multi-channel LDO PMIC products in 2023 mainly highlight the characteristics of high current, high PSRR, ultra-low output voltage, and ultra-low noise, providing a wealth of high-current products for the power supply around the camera. They will be widely used in major mobile phone brand customers this year. In terms of high-speed signal chain products, various USB redriver products supporting USB 3.1, 5 Gbps, and 10 Gbps will be released in the second half of this year, while the company will actively explore the USB retimer product layout.
Focus on automotive electronics and refine the product range around motor drives and headlights. The company launched the first 15A H-bridge DC motor drive product for automobile body control in China. Focusing on motor drives, it will also launch products such as stepper motors and DC motors for automotive thermal management, headlights, air conditioning dampers, water pumps, oil pumps, and fans. In terms of headlights, the company has already deployed products including 12, 16, and 24 channels; headlight products such as multi-topology headlight drivers, BUCKBOOST headlamp drivers, and matrix managers (ADB); and atmosphere lights with control units.
Profit forecast: We expect the company's net profit for 2023/2024/2025 to be 0.58/1.54/215 million yuan, respectively, and 123/47/33 times the PE stock price corresponding to October 27, respectively, maintaining the “buy” rating.
Risk warning: New product development falls short of expectations, vehicle regulation expansion falls short of expectations, and consumer demand continues to weaken.