持续加大研发投入，积极拓展海外高毛利率业务。公司大力开展前瞻性预研、新产品开发、工艺技术创新、产品迭代、建立研发中心及研发人员引进，24Q1-3，公司研发费用1.11 亿元，同比+29.91%，研发费用率7.00%，同比-1.23 pct；24Q3 单季，公司研发费用0.40 亿元，同比+28.10%，研发费用率6.41%，同比-1.64pct。报告期内，上游原材料价格处于周期性涨价阶段，导致公司毛利率有一定承压，Q3 公司毛利率20.79%，同比-5.63 pct，环比-0.08 pct。预计随着公司未来在连接器应用领域的研发和海外市场的持续拓展，毛利率有望维持在合理水平。occurrences
The company announced its financial results for the third quarter of 2024. With 24Q1-3, the company achieved revenue of 1.589 billion yuan, up 52.75% year on year; achieved net profit of 0.106 billion yuan, up 10.60% year on year; in the 24Q3 single quarter, the company achieved revenue of 0.631 billion yuan, up 60.90% year on year, up 27.36% month on month; achieved net profit of 0.041 billion yuan, up 40.67% year on year and 76.16% month on month.
Key investment points
Continue to increase investment in R&D and actively expand overseas high-margin business. The company vigorously carries out forward-looking research, new product development, process technology innovation, product iteration, establishment of R&D centers and introduction of R&D personnel. 24Q1-3, the company's R&D expenses were 0.111 billion yuan, +29.91% year over year, 7.00% R&D cost, -1.23 pct year on year; 24Q3 single season, the company's R&D expenses were 0.04 billion yuan, +28.10% year on year, and 1.64 pct year on year. During the reporting period, the price of upstream raw materials was in a phase of cyclical price increase, which put some pressure on the company's gross margin. In Q3, the company's gross profit margin was 20.79%, -5.63 pct year on year, and -0.08 pct month-on-month. It is expected that with the company's future R&D in the field of connector applications and the continuous expansion of overseas markets, gross margin is expected to remain at a reasonable level.
Deeply cultivate automotive connectors, “electrified” and “intelligent” two-wheel drive. The company is deeply involved in automotive connectors and has developed a full range of high-voltage high-current connectors and components, power exchange connectors, CCS, AC/DC charging guns, liquid-cooled charging guns, charging piles, and supercharging systems. In the field of automotive “intelligence”, the company has independently developed and innovated automotive high-speed core technology products around the three major application areas of infotainment systems, car safety systems with autonomous driving as the main requirement, and in-vehicle high-speed network systems (Ethernet), including FAKRA, Mini-Fakra, HSD high-speed, and automotive multi-gigabit Ethernet connectors , automotive-grade Type C interfaces, board-to-board floating high-speed connectors, etc., are currently being targeted by many car brands. The company's domestic customers cover automakers such as Changan Automobile, NIO Auto, SAIC Motor Group, H Company, Celis, BAIC Group, JAC, Great Wall Motors, Chery Motors, and Ningde Times, as well as “Sandian” companies. At the same time, overseas customers cover well-known car companies such as US T, Daimler, JP, and Xinmeiya.
Enrich the connector product line and actively explore products in emerging fields. With the rapid explosion of artificial intelligence, the increase in transmission rates of switches and optical modules will drive corresponding upgrades and iterations in connector speeds, and the number of internal connections to AI server systems will also increase. At present, the company has gradually developed SFP+, CAGE series, high-speed board-to-board connectors, high-speed I/O connectors, and AEC series products for use in AI and data centers, and related projects are currently underway. In addition, in the fields of low-altitude flying vehicles, 5.5G&6G communications and commercial satellites, overcharging systems, medical systems, humanoid robots, etc., the company is also exploring the in-depth application of products and actively promoting the progress of related projects.
Investment advice
We expect the company to achieve revenue of 2.239/2.998/3.696 billion yuan in 2024-2026, and realized net profit of 0.156/0.24/0.326 billion yuan respectively. The current stock price corresponding to 2024-2026 PE is 49 times, 32 times, and 24 times, respectively, giving it a “buy” rating.
Risk warning:
Market demand falls short of expectations; new product development and market expansion fall short of expectations; risk of rising raw material prices.
