Results fell short of expectations. The company released its three-quarter report on October 29. In Q1-3, the company achieved revenue of 0.946 billion yuan, -6.39% year-on-year, and net profit to mother 0.258 billion yuan, or -16.80% year-on-year:

Net profit without return to mother was 0.246 billion yuan, YoY -18.20%; looking at Q3 alone, achieved revenue of 0.278 billion yuan, -8.04% YoY, -21.52% month-on-month, net profit to mother 0.055 billion yuan, YoY -36.50%, 4.5.87% month-on-month, net net profit of 0.052 billion yuan YoY, -37.83% YoY, 47.09% month-on-month, gross profit margin 51.48%, YoY -0.12pct, +0.35pct, net The interest rate was 20.29%, -9.01 pct year on year, -8.86 pct month on month. The gross margin remained stable, and the net interest rate fluctuated greatly.

Revenue was the main factor behind performance falling short of expectations. The 24Q3 single quarter revenue was 0.278 billion yuan, which is a big gap compared to the previous revenue of 0.3 billion yuan or more.

Continued overseas layout. According to the investor relations record released by the company on November 1, the company will acquire and integrate Danish SGM and establish a new Danish subsidiary, which will exert overall synergy effects and continue to enhance the company's value in the future. According to the announcement issued on October 22, the wholly-owned subsidiary Haoyang Electronics (Vietnam) Co., Ltd. has completed commercial registration and obtained a “Business Registration Certificate” issued by the Vietnamese commercial authority.

Profit forecasting and investment advice. We expect the company's revenue in 2024-2026 to be 1.329/1.601/1.935 billion yuan, net profit to mother of 0.374/0.446/0.533 billion yuan, EPS is 2.95/3.52/4.22 yuan/share. Considering that the company is mainly export-oriented, the overseas performing arts market is recovering rapidly, the on-hand order situation is good, bargaining power is strong, gross margin net margin is high, and cash flow is good, so the corresponding reasonable value is 59.08 yuan/share to maintain “purchases” “Enter” rating.

Risk warning. The risk of increased competition; the risk of unsustainable exchange gains; the risk of overseas economic fluctuations; the risk of production capacity falling short of expectations.