Incidents:
The company released three quarterly reports: the company's revenue for the first three quarters of 2023 was 2,246 billion yuan, up 2.27% year on year; net profit attributed/deducted from non-return mother was 252/266 million yuan respectively, up +18.12% /-3 year on year.
80%. Among them, in Q3, the company achieved revenue of 778 million yuan in the single quarter, an increase of 6.28% over the previous year; net profit attributed/withheld from the mother was 0.85/093 million yuan, respectively, an increase of 44.35%/5.68% over the previous year.
Overall performance remained stable, and cash flow from operating activities performed well
In Q1-3 of 2023, the company achieved revenue of 704/7.64/778 million yuan respectively, up or down -2.258%/+2.72%/+6.28% over the same period last year. The net cash flow from the company's operating activities in the first three quarters increased by 104.35% year-on-year, mainly due to an increase in the bill payment ratio compared to the same period last year.
Net interest rates rose year on year, and financial rates increased due to a decrease in exchange earnings
In terms of profitability, the gross margin/net profit margin of the 23Q3 company was 31.27%/10.88% respectively, up or down -0.28/+2.87pct from the previous year. In terms of period expenses, the 23Q3 company's sales/management/finance rates were 2.65%/9.47%/-0.86%, respectively, up 0.13/0.96/3.18pct from the previous year; among them, the increase in financial rates was mainly due to a decrease in exchange earnings compared to the same period last year. 23Q3 The company's R&D rate was 4.50%, a decrease of 0.03pct over the previous year, and remained basically stable.
New industrial control products continue to advance, and the acquisition of high-quality assets is deeply involved in the field of automotive motors and components
In terms of new product development, up to 23H1's industrial control field, miniature sliding screws, planetary balls and roller screws, brushless hollow cup motors and their precision transmission components, servo motors, etc. are currently in the sample testing stage. The superimposed company's automated production line provides solid technical support and delivery guarantees for subsequent high-end manufacturing and modular products, and is expected to continue to be released in the future. In the field of automotive motors and components, the company aims at the development trend of electronic and lightweight auto parts, and has established strategic partnerships with outstanding auto parts companies such as Haili New Energy, Tudatong, and Autoliv on the basis of cooperation with high-quality customers such as Yutong, Jinlong, Ershi, and Casco. At the same time, it has successfully entered the NEV aluminum die casting industry. 23H1 has established strategic partnerships with Mino, Haili New Energy and Cordes. Furthermore, the company acquired Wuxi Seke in July to expand the NEV thermal management business, and stated that it will continue to contribute to incremental revenue in the future.
Investment advice and profit forecasting
The company is a leading global enterprise in the field of micromotors. Its business covers home appliances, automobiles, medical and other industries. The company has outstanding performance, strong R&D capabilities, and sufficient technical reserves. We are optimistic about the company's long-term development. The company is expected to achieve revenue of 34.61/41.27/4.937 billion yuan in 2023-2025, net profit of 3.48/4.22/496 million yuan, EPS of 1.10/1.33/1.56 yuan/share, corresponding PE of 25.49/21.06/17.92 times, maintaining the “buy” rating.
Risk warning
Technological innovation risk, exchange rate risk, risk of rising labor costs, risk of fluctuating raw material prices