Revenue for the 23Q3 quarter was +37.6% month-on-month. After deducting non-net profit, the month-on-month loss turned into a profit, and the performance was in line with expectations.
The company's revenue for the first three quarters of 23 years was 15.081 billion yuan, -2.0% year-on-year, net profit of 368 million yuan, -82.9%, non-net profit of 130 million yuan, year-on-year -89.7%; gross profit margin of 21.28%, y-11.36pct, net profit margin 2.39%, y-11.46pct, net profit margin of 0.86%, y-7.30pct.
The company's 23Q3 quarter revenue was 6.223 billion yuan, +37.6% month-on-month, net profit of 215 million yuan, net profit of 215 million yuan, net profit of 215 million yuan, month-on-month loss of profit; gross profit margin of 21.78%, +4.47pct month-on-month, net profit ratio of 3.41%, +4.46 pct month-on-month, net profit rate 3.36%, +5.59pct month-on-month.
The 23Q3 inventory value fell 23.2% month-on-month to 7.552 billion yuan, and the results of inventory removal were remarkable.
The company actively promoted inventory removal. In 23Q3, the company's inventory value fell to 7.552 billion yuan, -23.2% over the previous year (the inventory amount disclosed in the '23 semi-annual report was 9.828 billion yuan). At present, inventory levels have clearly declined quarterly. With the gradual recovery of consumer electronics demand and the peak sales season for traditional new H2 machines, it is expected that inventories will continue to improve.
Q3 has launched a number of new mobile phones/automotive electronics/security products, and we look forward to continued growth in the volume of new high-end CIS products.
1) On the mobile phone side: The company's new CIS product with 50 megapixels or more has been mass-produced and delivered since 23Q3. The OV50H has been applied to the Xiaomi 14 series 50MP main camera released on October 26, and the company's high-end flagship camera capabilities are gradually showing. According to Canalys data, 23Q3 global smartphone market shipments were +14.1% month-on-month, and the mobile CIS business is expected to grow month-on-month in the Q3 quarter. 2) Automotive electronics: The new 8 megapixel CMOS product OX08D10 has been sampled. It has industry-leading low light performance and low power consumption, and is expected to be mass-produced in 24H2. Considering the gradual expansion of the company's automotive electronics product matrix, according to data released by Cui Dongshu, Secretary General of the Passenger Transport Federation, the 23Q3 global automobile sales volume was +3.2% month-on-month, and the automobile CIS revenue is expected to increase month-on-month in the Q3 quarter.
3) On the security side: FSI's new 2 megapixel CIS product OS02N with front light is being sampled and is expected to be mass-produced in 24Q1; 8 megapixel BSI rear-illuminated CIS OS08C10 has already been sampled and is expected to be mass-produced in 24Q1.
A leading domestic image sensor, actively expanding automotive/medical/ARVR applications and maintaining a “increase in ownership” rating.
As one of the top three image sensor leaders in the world, the company and Beijing Junzheng have formed a strategic collaboration on the vehicle platform “storage+simulation+sensing”. Through the acquisition of Sirebo, XinLiT, and the divestment of the RF and communication chip business, the company has actively adjusted its business layout and gained new momentum for growth in the fields of automotive, medical, AR/VR, etc., with broad room for growth. The company's net profit from 2023 to 2025 is estimated to be 1,074/16.81/2,406 billion yuan respectively, corresponding to 23/24/25 PE of 122/78/54 times, maintaining the “increase in holdings” rating.
Risk warning: risk of market changes; risk of relatively concentration of downstream customer business areas; risk of new product development; risk of large inventory size, etc.