Event: The company released its 2023 three-quarter report. In the first three quarters of 23 years, the company achieved operating income of 4.876 billion yuan, +22.34% year-on-year; net profit of 483 million yuan, +58.57% year-on-year. In '23, Q3 achieved operating income of 1,590 billion yuan, +24.10% year-on-year, -7.90%; net profit was 93 million yuan, +16.18% year-on-year, and -59.35% month-on-month. The month-on-month decline in performance was mainly due to the fact that the third quarter was a low season for the company's traditional operations.
The profit margin for the first three quarters of 23 years was steady, and R&D investment continued to be high. The company's comprehensive gross margin and net profit margin for the first three quarters of 23 years were 25.09%/9.80% respectively, +1.56pct/+2.10pct year-on-year. The comprehensive gross margin and net profit margin of the Q3 company in '23 were 25.21%/5.58% respectively, +1.46pct/-0.59pct year-on-year, and -0.66pct/-7.61 pct month-on-month. On the cost side, the company has maintained an investment rate of more than 10% in R&D expenses for many years, strengthening platform-based construction.
With the exception of power products, the main businesses have achieved rapid growth, and it is expected that the large-scale effects of the company's many businesses will gradually become apparent in the future. 1) Electronic control of smart home appliances: From a regional perspective, since this year, the company has achieved good growth in both domestic and foreign regions, especially in the Indian market. Judging from the product structure, the company has achieved good growth in inverter home appliance control products and smart bathroom products. We expect the company's production and sales in the home appliance industry to maintain a relatively steady growth trend in the future. 2) Power products: Revenue grew steadily in the first three quarters. Among them, medical power supplies and industrial guide rail power supplies declined slightly due to industry demand, low power display power supplies and network power supplies grew steadily, and revenue growth in the optical storage and charging business achieved a high growth rate. The company's power products business has now gradually moved from an investment period to a harvest period, providing continuous impetus for future long-term development. 3) New energy vehicles: The first three quarters of this year achieved relatively rapid growth. With the company's continuous investment in R&D and long-term stable cooperation with customers in various NEV fields, it is expected that the company's NEV business will continue to grow in the future, and its ability to withstand risks will continue to improve. Furthermore, we expect the company's industrial automation business to grow rapidly in the first three quarters, and the intelligent equipment and precision link business to grow rapidly.
Investment suggestions: It is estimated that the company's net profit from the company in 23-25 will be 6.73/9.03/1,161 billion yuan, +42.3%/+34.2%/+28.6% over the same period last year. The corresponding PE is 19.1/14.3/11.1, maintaining the “buy” rating.
Risk warning: raw material price fluctuations; macroeconomic fluctuations; new product promotion falling short of expectations.