Q3 单季度业绩实现较快增长，其中营收同比增速超21%，环比增长3.55%。2024Q3 单季度，公司实现营业收入2.90 亿元，同比增长21.21%，环比增长3.55%；归母净利润0.48 亿元，同比增长37.36%；扣非归母净利润0.44 亿元，同比增长22.77%。Description of the event
The company released its 2024 three-quarter report: during the reporting period, the company achieved operating income of 0.854 billion yuan, an increase of 8.94% year on year; achieved net profit due to mother 0.152 billion yuan, an increase of 15.00% year on year; realized net profit deducted from non-mother 0.145 billion yuan, an increase of 16.18% year on year. The results were in line with previous expectations.
Incident reviews
The Q3 single-quarter results achieved relatively rapid growth. Among them, revenue grew by more than 21% year on year and 3.55% month on month. In the 2024Q3 quarter, the company achieved operating income of 0.29 billion yuan, up 21.21% year on year, up 3.55% month on month; net profit to mother was 0.048 billion yuan, up 37.36% year on year; net profit after deducting non-return to mother was 0.044 billion yuan, up 22.77% year on year.
During the reporting period, product structure optimization led to a continuous increase in profitability. The company's gross sales margin increased by 2.40 pct to 44.82%, a record high in the past five years. During the reporting period, the company's net sales margin increased by 0.89pct to 17.41%; gross sales margin increased by 2.40pct to 44.82%, with a single Q3 net profit margin of 16.33%, up 2.05pct year on year; gross profit margin was 44.99%, up 0.65pct year on year, mainly benefiting from the increase in sales volume of the company's professional instruments and testing instruments product line, sales structure optimization, and the company's profitability continued to improve.
The company insisted on increasing investment in R&D and continued to innovate independently, and the cost rate increased during the period. During the reporting period, the company's sales expenses rate increased by 1.07pct to 24.13% year-on-year, including the sales expense ratio of 9.40% (+0.60pct); the management expense ratio of 6.39% (+0.18pct); the R&D expense ratio was 9.38% (+0.42pct), mainly due to the company's continued increase in R&D investment, R&D personnel remuneration, R&D consumables and design patent costs; financial expenses ratio -1.05% (-0.15pct).
Looking ahead to the fourth quarter, the company's performance can be expected to grow steadily. The main driving factors include: (1) The effects of the “two new” policies continue to show. Recently, the National Development and Reform Commission has provided financial support for large-scale equipment upgrades in the industrial sector through ultra-long-term special treasury bonds. Downstream capital expenditure is expected to be repaired, supporting instrument demand and new orders. (2) Three new test instruments have been released, and the high-end process continues to accelerate, which is expected to drive further growth in revenue and profitability. On September 23, 2024, the company released three new products: the MSO8000HD, the MSO5000HD series high-resolution oscilloscope, and the UTE310H digital power meter, showcasing the latest achievements of the company's oscilloscope analog front-end chipset.
Since 2024, the company has released more than ten new test instruments, including oscilloscopes, spectrum analyzers, signal sources, power supplies, etc. The product matrix has been further enhanced, which is expected to further increase the average price and gross margin of the company's products. (3) Vietnam's production capacity is about to be implemented to enhance international competitiveness. Vietnam's Ulide plans to start production in 2024Q4. After it is put into operation, it can diversify and reduce the risks that may be caused by changes in the international environment, and jointly build a production and supply chain network covering the world with production bases in Heyuan and Songshan Lake to further enhance response speed and market competitiveness, and lay a solid foundation for the continuous high-quality development of the company's business.
Investment advice
The triple barrier of “channel - product - brand” has created a good industry pattern. The company's instrument business is industry-leading and stable; in 24Q4, Vietnam's Ulide plans to be put into operation, opening a new chapter in the global layout; equipment updates and autonomous and controllable demand are expected to become a catalyst for the industry to accelerate growth. Taking into account the industry situation and the company's development strategy, we expect the company's 2024-2026 revenue to be 1.186 billion yuan, 1.384 billion yuan, and 1.625 billion yuan, respectively, net profit to mother of 0.2 billion yuan, 0.251 billion yuan, 0.315 billion yuan, and EPS of 1.80/2.25/2.83 yuan. According to the closing price of 38.35 yuan on October 28, the corresponding PE is 21/17/ 14 times, maintaining a “buy-A” investment rating.
Risk warning
Downstream demand falls short of expectations; market competition increases risks; risk of fluctuations in raw materials; progress in new product development falls short of expectations; overseas market expansion falls short of expectations; risk of controlling shareholders lifting bans and reducing holdings, etc.
