The company released the 2023 three-quarter report: 2023H1 achieved revenue of 4.876 billion yuan, a year-on-year increase of 22.34%, a year-on-year increase of 483 million yuan, a year-on-year increase of 58.57%, a year-on-year increase of 307 million yuan, a year-on-year increase of 30,59%; 2023Q3 achieved revenue of 1,590 million yuan, a year-on-year increase of 24.10%, net profit of 93 million yuan, a year-on-year increase of 16.18%, and net profit of $0.70 billion, a year-on-year increase of 15.52%.
Revenue is growing steadily, and expense ratios have increased slightly. 2023Q3 achieved revenue of 1,590 billion yuan, a year-on-year increase of 24.10%, and steady revenue growth; gross margin was 25.20%, +1.46pct year-on-year, a slight decrease from the previous month; in terms of cost ratio, sales expense ratio, management expense ratio, and R&D expense ratio were 5.19%/3.20%/11.91%, respectively, a slight increase compared to the overall rate in 2022/Q3.
Increase capital in overseas subsidiaries and continue to develop overseas markets. In October 2023, the company plans to use its own capital of 10 million US dollars to increase the capital of its wholly-owned subsidiary Megmeet Hong Kong Co., Ltd., which is fully included in the registered capital; after the above capital increase is completed, Hong Kong Megmeet will use its own capital of 362.4 million baht for its subsidiary (that is, the company's subsidiary)
ALTATRONICINTERNATIONAL CO., LTD., carried out capital increases, all of which are included in registered capital. We believe that the company's continued expansion of overseas expansion is expected to expand the company's overseas markets, expand the company's business, enhance the company's ability to withstand risks, and achieve the goal of multi-polarization.
Profit forecast and investment rating: We expect the company's net profit from 2023-2025 to be 6.6, 8.7, and 1.11 billion yuan respectively, up 39%, 33%, and 27% year on year. The market value as of November 2 corresponding to the 23-24 PE is 19 and 14 times, maintaining the “buy” rating.
Risk factors: cyclical macroeconomic fluctuations, industrial policy adjustments, risk of rising raw material prices, etc.