The company released the third quarterly report of 2023, 23Q3 performance began to rise year-on-year, month-on-month increase. The company works closely with T customers in computing chip products to maintain an overweight rating.
Support the main points of rating
23Q3 performance began to rise compared with the same period last year, and increased significantly compared with the same period last year. The company's operating income in the first three quarters was 3.349 billion yuan, + 0.18% compared with the same period last year, and the net profit was 374 million yuan, + 25.61% compared with the same period last year, deducting 366 million yuan from non-parent net profit, + 22.84% from the same period last year. In a single quarter, the company's Q3 operating income is 1.198 billion yuan, year-on-year + 5.01% / month-on-month + 5.48%, return-to-mother net profit 178 million yuan, year-on-year + 8.42% / month-on-month + 47.59%, deduction of non-return net profit 174 million yuan, year-on-year + 7.63% / month-on-month + 47.03% In terms of profitability, the company's gross profit margin in the first three quarters of 2023 was 20.09%, year-on-year + 3.71pcts, net profit 11.18%, year-on-year + 2.26pcts, deduction of non-net profit 10.93%, year-on-year + 2.02pcts. The above reasons are mainly due to the adjustment and optimization of product structure, the increasing proportion of continuous production and sales of high value-added products, and changes in the exchange rate of the US dollar.
Follow into Dojo R & D, enjoy the first-mover advantage: the company has established a long-term relationship with T customers, has a number of close business cooperation. Since T customers put forward new projects in 2019, the company has actively participated in the PCB R & D and production of its training module carrier board and motherboard. According to the plans of T customers, it is expected to reach 100EFLOPS computing power by the end of 2024. We believe that the company has broad growth space, first-mover advantages and technical barriers, and is expected to enjoy the marginal dividend of key customers to continue to cultivate the industry.
High quality customer resources, lay the foundation in the automotive field: at present, the company's largest business is the automotive PCB plate, foreign customers have Tesla, Inc., BMW, Volkswagen, Porsche, domestic great wall and other new forces, the accumulation of PCB technology in the automotive field is expected to lay a good foundation for the sustained growth of the company's business, the second largest business scenery storage customers are Vestas, Tesla, Inc.. The company's long-term cooperation of international front-line brand customers is strong, orders are stable, checkout on time, to provide the company with stable income, profits and cash flow.
Valuation
The company's performance increased significantly in the third quarter. According to the business development of the company, we expect the company to achieve operating income of 50.08 million yuan, net profit of 5.07 million and corresponding PE of 17.3, 14.6, 14.6 and 12.1 times, respectively.
Main risks faced by rating
Shipments of Dojo-related products are not as expected, raw material prices fluctuate, and downstream customer development is not as expected.