Q3 performance increased significantly from the previous month. In the first three quarters of 2023, the company achieved operating income of 3.349 billion yuan, an increase of 0.18% over the same period last year. Q3 realized revenue of 1.198 billion yuan, an increase of 5.01% year-on-year and 5.48% month-on-month. The weak terminal demand led to the low prosperity of the PCB industry, and the company achieved positive revenue growth against this background. In the first three quarters of 2023, the company achieved a net profit of 374 million yuan, an increase of 25.61% over the same period last year. Q3 realized a net profit of 178 million yuan, an increase of 8.42% over the same period last year, an increase of 47.59% over the previous year, and a steady increase in performance over the same period last year.

With the increase of production rate, the structure of superimposed products was adjusted, and the gross profit margin and net profit margin increased significantly. In the first three quarters of 2023, the company's gross profit margin was 20.09%, year-on-year growth of 3.72pct, net profit rate of 10.55%, year-on-year growth of 2.35ct. In the third quarter alone, the company's gross profit margin and net profit margin were 24.53% and 14.39%, respectively, compared with the same period last year. + 5.61pct/+0.54pct, respectively, and the Q3 farming rate increased compared with the same period last year. At the same time, with the continuous improvement of the company's product structure and the improvement of the average unit price, the company's gross profit margin and net profit margin have increased significantly in Q3. From the expense side, the expense rate of the company in the first three quarters of 2023 was 3.92%, an increase of 0.41pct over the same period last year, which was basically stable; the expense rate of Q3 company was 4.16%, an increase of 2.09pct, and a month-on-month growth of 3.37pct, in which the financial expense rate changed greatly, with year-on-year / month-on-month growth + 3.51pct/+3.91pct, respectively.

The company actively carries on the high-end domain exploration, carries on the multi-domain product layout around the big customer. As the core supplier of T customer, the company not only has in-depth cooperation with it in the automotive field, but also carried out the cooperation layout of energy storage, humanoid robot and other business. at present, the PCB provided by the company for T customer robot is in the early proofing stage and is carried out smoothly. T customer energy storage is divided into overseas and Shanghai factories, overseas supply has begun mass production in 2021Q4, the current stable supply, Shanghai factories are also closely docking, the supply time is expected to be consistent with the customer's planned production time. The release of T customer dojo supercomputer once again opens a new opportunity for the development of the company's business. The company and T customers have carried out technical cooperation around the Dojo project for three years, and the related PCB products have been supplied this year. The PCB products supplied by the company are mainly used in the training module (Tile), equipped with 25 D1 chips, which is the core component of Dojo. On the basis of the stable development of its basic business, the company continues to explore new areas, and has proved its technical ability and ability to respond to customer needs again and again. It is expected that in the future, with the gradual landing of all kinds of new projects from major customers, the development space of the company's business will also be further effectively developed.

[investment advice]

According to the company's three quarterly report data, we slightly lowered the company's revenue forecast, reducing the operating income of 2023Universe 2024x2025 to 46.10Universe 5424,000,000 yuan respectively. We raised our forecast for the 23-year gross profit margin, and then raised the 23-year profit forecast. The profit forecasts for 24 and 25 will change with the reduction in revenue expectations. We estimate that the net return of 2023 and 2024 in 2025 will be 617 and 729 million, respectively, and the EPS of 2023 and 2024 will be 0.99 and 1.16, respectively, respectively, and the corresponding PE will be 1.37 times that of 17-14-12, maintaining the "overweight" rating.