Introduction to this report:
Benefiting from factors such as the scale effect brought about by improved demand, the company's profitability rebounded in 23Q3. The company actively embraces the field of new energy, increases overseas layout and customer expansion, and is expected to continue to drive performance growth.
Key points of investment:
Maintain an increase in holdings rating. Considering that the growth rate of the new energy industry has slowed down, the company's EPS in 23-25 was lowered to 2.09 (-1.47) yuan, 3.18 (-1.91) yuan, and 4.84 (-1.75) yuan; considering that comparable companies were given 18 Xpe in 24, the target price was lowered by 57.24 (-6.30) yuan.
The performance was slightly lower than expected. In the first three quarters of 2023, the company achieved revenue of 3,906 million yuan, an increase of 32.1%; net profit of 277 million yuan, an increase of 65.2%; net profit of 277 million yuan after deducting non-return net profit of 272 million yuan, an increase of 74.9%. Among them, Q3 revenue was 1,455 billion yuan, up 16.6%, or 11.7%; net profit was 109 million yuan, up 18.9%, or 27.2%; net profit after deducting revenue was 107 million yuan, up 20.3%, or 26.6%.
The start of a peak season in the auto market is driving a recovery in profitability. 23Q3's gross margin was 18.5%, an increase of 1pct over Q2. This was due to the growth in the company's auto parts and battery case business and increased capacity utilization as stocking demand gradually began during the peak season of the auto market. The company currently has sufficient orders. According to customer targeting and capacity expansion, the scale effect in the fourth quarter is expected to be further unleashed, and profitability is expected to increase further month-on-month.
Connect with leading customers to actively embrace new energy. In the field of electric vehicles, the company's lightweight body, chassis and other structural parts cater to the lightweight trend of electric vehicles, directly and indirectly supplying related components and products for models such as Aian and Qinjie; in the field of power batteries, the company has mastered various CTP battery case processes such as FDS, and the product value has further increased; in the field of optical storage, the company has production capacity for core devices such as inverters, and has entered enterprises such as Huawei and Sunshine Power. At the same time, the company's Mexican plant is gradually put into operation, which is beneficial to support customers in the North American market nearby.
Risk warning: New energy vehicle sales fall short of expectations, market competition intensifies