Event: on October 20, the company released its 23-year quarterly report, with revenue of 3.24 billion yuan in the first three quarters, + 11.01% year-on-year, net profit of 111 million yuan,-64.36%, and non-net profit of 84 million yuan,-37.80%.
Performance improved month-on-month, in line with expectations. Quarterly, 23Q3 achieved revenue of 1.164 billion yuan, year-on-year + 45.42%, month-on-month + 1.98%; return to the mother net profit of 26 million yuan, + 147.78%, month-on-month-1.32%; deducting non-net profit of 16 million yuan, 123.41% year-on-year, month-on-month-57.32%. The sharp increase in 23Q3 performance compared with the same period last year is due to the continuous destocking of the industry in the same period last year, a low performance base and a 23-year recovery in demand.
The gross profit margin remained stable on a month-on-month basis, and the expense rate decreased during the period compared with the same period last year. 1) Gross profit margin: the company's gross profit margin in the first three quarters was 13.34%, year-on-year-6.65pct. Among them, 23Q3 gross profit margin is 14.00%, year-on-year + 3.82pct, month-on-month-0.51pct. With the pick-up rate, the company's gross profit margin is expected to improve quarter by quarter.
2) period cost: the company focuses on increasing revenue and reducing expenditure, and continues to promote the reduction of cost and control fees. In the first three quarters, the company's period expense rate was 8.69%, year-on-year-2.83 pct, of which the sales, management, R & D and financial expense rates were 1.83%, 6.16%, 4.70% and-4.00%, respectively, which were-0.08%,-1.20%,-0.88% and-0.67pct, respectively.
Pay attention to the restoration of the industry boom and be optimistic about the high-end layout of the company. 1) production side: the Xianghe project, which locates the industrial and high-end consumer markets, has been formally put into trial production; the technical transformation and expansion project of "monthly production of 4 billion laminated inductors" and "monthly production of 100 million integrated molded inductors" has been completed and entered the construction period. 2) Product side: the company continues to focus on high-end transformation, continues to improve the R & D conversion rate of high-capacity products and high-end materials, and delivers production of 12 new specifications of high-end MLCC and exports 4 key materials. We are optimistic that the company will continue to carry out technological innovation, enrich product categories, improve the technical level and delivery capacity of automotive and industrial control application products, increase market development in emerging fields such as AR, VR, photovoltaic and wind power, expand the market share of superior products and high-quality special products, and realize the optimization and upgrading of product structure.
Profit Forecast: based on the fact that the recovery of terminal demand is lower than previously expected, the 23-25 net profit of homing has been lowered to 1.71, 376, and 682 million yuan, maintaining a "buy" rating.
Risk tips: the recovery of terminal demand is not as expected; the progress of mass production of high-end products is not as expected.