Description of the event
The company released its three-quarter report for 2023, achieving operating income of 154 million yuan, +7.33% year-on-year; realized net profit of 33 million yuan, +4.33% year-on-year, and realized net profit after deduction of 0.18 million yuan, or -39.76% year-on-year.
Among them, 2023Q3 achieved operating income of 45 million yuan, +18.51% year-on-year; realized net profit of 0.07 billion yuan, +33.13% year-on-year; and realized net profit after deduction of 0.02 billion yuan, or -51.31% year-on-year.
Incident comments
Gross margin returned to 60% +, and government subsidies and financial benefits led to an increase in the company's net interest rate. The gross margin of 2023Q3 company was 62.60%, down 2.97pct year on year, up 2.91pct from month to month, returning to 60% + gross margin level since 22Q4.
On the cost side, the cost rate during the 2023Q3 period increased by 8.80pct to 65.85%. Among them, the R&D/management/sales expense ratio was 31.60%/21.45%/15.08%, respectively, and the year-on-year increase of 4.63pct/3.88pct/0.80pct, mainly due to the company's increased investment in R&D and market development during the reporting period, the increase in related expenses, and the increase in share payment expenses due to equity incentives. Although the company's gross margin declined year over year and the expense ratio increased year over year, the 2023Q3 net interest rate was 15.91%, still up 1.80 pct year on year (down 5.88 pct from month on month), mainly due to government subsidy revenue and revenue growth in wealth management products.
The leading position in the main business is consolidated, and the expansion of new categories and new scenarios is expected to gradually open up market space. The total number of products shipped by the company's galvanometer control system accounts for about one-third of the total market volume, and the market share in the domestic market segment is still ranked first. In terms of new product development: 1) Servo control system products have been tested and tested at dozens of customers, achieving sales revenue of 1,005 million yuan in the first half of the year. 2) FalconScan series products and high-power welding galvanometer products have been newly launched, and the relevant performance indicators have reached the same level as international products. 3) The company cooperates with universities to jointly develop high-end five-axis galvanometers. 4) Laser precision resistance adjustment equipment is used in aerospace, electronic component production and other fields, and can be customized according to customer needs.
In terms of developing new application scenarios, the company promotes high-end domestic replacement. Actively expanding into high-end application fields such as new energy power batteries and photovoltaics, etc., we have provided customers with high-performance laser processing solutions in various application fields such as silicon wafer marking, disc flight cleaning, disc flight welding, glass cutting and drilling, and large format linkage splicing, etc., and reached many collaborations.
The laser 3D printing control system is currently being developed, and is expected to contribute to increased performance in the future. The company can provide high-precision and high-reliability 3D printing software and hardware solutions for laser 3D printing application scenarios. Furthermore, at present, the company has completed the development of SLA and SLM 3D printing software and has entered the batch application stage.
Maintain a “buy” rating. The company continues to improve and optimize the existing technology system, expand new products+new application scenarios, and is expected to continue to contribute to growth points in the future. It is estimated that in 2023-2025, the company will achieve net profit of 0.49, 0.66, and 86 million yuan, corresponding to PE of 63, 47, and 36 times, maintaining the “buy” rating.
Risk warning
1. The risk of new product market development falling short of expectations;
2. The risk that market competition affects prices.