Net profit for 23Q3 increased 18.49% month-on-month. In 2023Q3, the company achieved revenue of 509 million yuan, an increase of 3.82% over the previous year, an increase of 9.48% over the previous year; realized net profit of 84.51 million yuan, an increase of 3.14% over the previous year, an increase of 18.49% over the previous year; and realized a net profit of 82.63 million yuan, an increase of 29.57% over the previous year, an increase of 27.51% over the previous year. In 2023Q1-Q3, the company achieved revenue of 1,406 million yuan, a year-on-year decrease of 18.31%; realized net profit of 235 million yuan, a year-on-year decrease of 38.01%; and realized net profit deducted by 207 million yuan, a year-on-year decrease of 23.12%.
The company continues to optimize its product structure. 2023Q1-Q3 continues to optimize its product structure. In 23 and a half years, it has shut down the production of a large variety of products in the water reducing agent sector, and has made every effort to cultivate small products. In particular, the production and sales situation of new products such as surfactants for wet electronic chemicals, new energy adhesives, and new material resins for UV light curing is relatively good. Entering 2023Q3, the company's small-variety sector products continued to increase year-on-year and month-on-month, and exports also showed a positive trend. Efficiency growth was relatively good, effectively driving the company's overall performance to improve.
By business: In 2023Q1-Q3, the company achieved revenue of 55.81 million yuan in the large variety sector, a decrease of 80.4% over the previous year; in the small variety sector, revenue was 1,349 billion yuan, a decrease of 6.0% over the previous year. 2023Q1-Q3, the company achieved sales volume of 7987.4 tons in the large variety sector, a year-on-year decrease of 77.0%; sales volume in the small variety sector was 97,800 tons, an increase of 6.5% over the previous year.
The company continues to develop new varieties. The company adheres to a multi-variety, multi-sector development strategy, and continues to explore new sectors and fields, including MS resin, polyetheramine, and new energy. In recent years, the company's production and sales volume in the small variety sector have continued to increase steadily. The company will continue to deepen its main business and expand its market share. As a joint company of the company, Zhongke Ya'an recently developed mainly products of aerospace polyimide products. The company aims to achieve mass production by the end of 2023. In 2023, the company continued to promote product growth in the small variety sector, and the annual sales target for MS resin and polyetheramine products was 10,000 tons.
Profit forecasts and investment ratings. Due to reduced non-recurring profit and loss and sluggish downstream demand, we lowered our performance. We expect the company's 2023-2025 EPS to be 0.59 (-43%), 0.72 (-43%), and 0.87 yuan/share (-37%). Combined with comparable company valuations, we gave 24 times PE for 2023, corresponding to 14.16 yuan (previous target price of 16.80 yuan, corresponding to 23 times PE in 2023, -16%). As the company continues to expand new varieties and the market rate of small products has increased rapidly, we maintain our “superior to the market” rating.
Risk warning: market competition risk; environmental protection risk; production safety risk; raw material price fluctuation risk.