Events: The company released a three-quarter report. 23Q1-Q3 achieved operating income of 1.91 billion yuan, an increase of 20.3% over the previous year; realized net profit of 100 million yuan, an increase of 731.1%, a net profit margin of 5.0%, an increase of 4.3pct over the previous year; realized net profit of 0.8 billion yuan, an increase of 3594.9% over the previous year, a net profit margin of 4.1%, a year-on-year increase of 4.0pct. Looking at a single quarter, 23Q3 achieved operating income of 790 million yuan, a year-on-year increase of 32.9%, mainly due to an increase in the company's contract project revenue; realized net profit of 500 million yuan, a year-on-year increase of 93.9%, a year-on-year increase of 5.9%, a year-on-year increase of 1.9pct; realized net profit deducted from net profit of 0.4 billion yuan, an increase of 81.7% over the previous year, a net profit rate of 4.5%, and a year-on-year increase of 1.2pct. The increase in net profit attributable to the mother and net profit after deducting non-attributable net profit was mainly due to an increase in revenue and a decrease in unit costs.
The consolidated gross margin of 23Q1-Q3 company was 27.1%, an increase of 4.0pct. The fee rate for the period is 18.7%, minus 0.6 pct. Among them, the sales/management/development/finance expense ratio was 12.2%/4.0%/2.5%/0.02% respectively, a year-on-year change of +0.3 pct/-0.6 pct/-0.8 pct/+0.5 pct. Looking at a single quarter, the 23Q3 consolidated gross margin was 27.9%, a year-on-year increase of 2.1 pct. The fee rate for the period was 18.7%, an increase of 0.2 pct. Among them, the sales/management/development/finance expense ratio was 13.3%/3.3%/2.2%/-0.05%, respectively, a year-on-year change of +2.0pct/-0.9pct/-1.0pct/+0.2 pct.
The company has a complete product strategy and R&D system, and continues to explore and explore in the field of traditional door locks. The company continues to expand the domestic market, actively expand the dealer network covering the whole country, and has formed a diversified sales channel system such as direct sales, dealers and e-commerce platforms. As a safety gate enterprise with large-scale production, the company has a scale effect in market competition. The company combines omnichannel e-commerce solutions to create data interconnection, sharing and sharing of automated, intelligent, and streamlined manufacturing and processing equipment for anti-theft security door manufacturing, which has the advantages of intelligent manufacturing.
Profit forecast and rating: Considering the pressure on the external environment, we lowered the company's net profit for the year 23-24 from 20/290 million yuan to 16/230 million yuan, an increase of 461.2%/50.2% over the previous year. The current closing price corresponding to PE is 28.93/19.27 times, respectively. The reference comparable company gave 22-24 times PE in 24 years, and the corresponding reasonable value range was 11.67-12.73 yuan, giving it a “superior to the market” rating.
Risk warning: risk of sharp rise in raw material prices, risk of market competition, risk of fluctuations in the real estate industry, risk of dealer management.