Specific events. The company's income in the first three quarters was 688 million yuan, down 0.6% from the same period last year; the net profit was 65.3848 million yuan, up 11.77% from the same period last year; and the non-net profit was 60.5335 million yuan, up 13.23% from the same period last year. Among them, in the third quarter of 2022, the company's main income in a single quarter was 228 million yuan, down 2.34% from the same period last year; the net profit in a single quarter was 20.2284 million yuan, up 142.35% from the same period last year Non-net profit of 17.6521 million yuan was deducted in a single quarter, up 160.69% from the same period last year. The company has established cooperative relations with many domestic customers in the fields of micro speakers, MEMS sensors, TWS intelligent wireless headphones, VR/AR, smart wearable, smart home, smart vehicles and other fields, continuously increasing R & D investment, and the industry status has been further enhanced.
The car qualification layout is sufficient, the customer resources are excellent. At present, the company's products in the vehicle field mainly include car-mounted microphones and microphone modules, and the market share is far ahead. The follow-up company will further expand the product category. Gradually layout waterproof, noise reduction, accelerator sensors, wireless charging / K song modules, etc., continue to improve the value of bicycles. The company has an early qualification layout in the automotive field, and has passed the TS16949 automotive industry certification in 2007, and began mass production of automotive electronic accessories in 2013. Avita 11 is equipped with RNC (Road Noise Cancellation) active noise reduction technology, which brings increment to the company's new business.
It has complete MEMS semiconductor closed testing capability and equipment, integrated layout of integrated circuit industry chain is accelerated, and excellent quality control of vehicle products. The company independently develops automatic assembly line, automatic test line, mold independent processing, self-made parts to ensure that product quality and production costs can be effectively controlled.
The growth rate of the consumer electronics industry has slowed down, and the company is actively expanding new business growth points in smart home, smart wear, AR/VR and other areas. With the trend of slowing down in the consumer electronics industry, the company keeps pace with the times, continues to consolidate its share of consumer electronics customers and actively carries out strategic transformation, and continues to expand new business growth points in smart vehicles, smart homes, smart wear, AR/VR and other fields.
Profit forecasts and valuation recommendations. We estimate that the total revenue of DEC in 2022E/2023E/2024E will be RMB 1.237 billion, an increase of 32.0% / 45.0% of the same period last year. The estimated net profit of 2022E/2023E/2024E for the year of return to the parent is RMB 1.97pm, an increase of 83.1%, 64.1% and 56.4%, and the current share price of DEC is 34.7% PE 21.113.5x. Maintain a "buy" rating.
Risk hint: downstream demand is lower than expected, industry competition intensifies.