Q3 performance short-term pressure, or due to pan-IoT, FWA and other sectors demand-side fluctuations, according to the company's three quarters of 2023, the company's revenue / return net profit / deduction non-return net profit in the first three quarters of the company were 15.60 pounds 0.69 billion yuan, respectively, down 13.43% up 43.91% picks 47.66% month-on-quarter revenue / return net profit / deduction non-return net profit was 537pm 0.19 million yuan respectively Compared with the same period last year, it decreased by 20.60%, 44.73%, 46.21%, respectively. We judge that the short-term pressure on the company's performance is mainly due to fluctuations in business demand, such as the company's FWA and traditional IoT. Taking into account the pressure of demand, we downgrade the company's 2023 to 2025 net profit forecast of 1.05 Wind 1.58max 2.29 million (previous value: 1.46pm 2.18max 288), comparable to the company's 2024 PE average of 41x, based on the company's leading position in smart modules, computing modules and other fields, give the company 2024 52xPE, corresponding to the target price of 31.52 yuan (previous value: 33.54), to maintain the "overweight" rating.
Q3 comprehensive gross profit margin was basically the same as the same period last year, and the company continued to increase investment in R & D. in the first three quarters of the company, the company's comprehensive gross profit margin / net sales margin was 19.25% / 4.37%, respectively, compared with the same period last year. The comprehensive gross profit margin / net sales margin of Q3 was 17.05% / 3.69%, respectively, compared with the same period last year.-0.11/-1.63pct. In terms of the company's expense side, the sales / management / R & D expense rates in the first three quarters of 2023 were 2.71%, 2.55% and 9.99%, respectively, increasing 0.91/0.43/2.46pct compared with the same period last year, and maintaining a high level of investment in R & D.
Intelligent modules and computing modules continue to make breakthroughs, and the company is expected to enjoy AI development opportunities in the future. The company is actively promoting the layout of intelligent modules and computing modules in the field of intelligent modules. According to the company's semi-annual report, in terms of intelligent modules, the company has customized and developed third-generation vehicle products in the field of 5G intelligent cockpit to achieve small batch shipments on high-end SUV models in the terminal factory. Aiming at emerging industries such as embodied intelligent robots and next-generation intelligent drones, we will work with industry customers to create new application directions. In terms of computing power modules, the company takes the lead in launching high computing power modules with comprehensive AI computing power of 48T in the industry, continuously promoting the development of high computing power AI modules, and providing more possibilities for the landing of high computing demand applications such as AIGC, general large models, industry large models, etc.
Maintain the "overweight" rating
Considering the short-term pressure of the market demand of FWA and pan-IoT, we reduce the company's 2023-2025 net profit forecast to 1.58-2.29 million (previous value: 1.46-2.18) million, which is comparable to the company's 2024 Wind consensus forecast PE of 41x. Based on the company's leading position in intelligent module and computing module, we give the company 2024 52xPE, corresponding to the target price of 31.52 (previous value: 33.54). Maintain the "overweight" rating.
Risk hint: the competition in the Internet of things module industry is intensified, and the progress of customer development is not as expected.