The company released the 2022 3rd quarter report, and the automotive optics revenue is growing rapidly, and the company released the 2022 3rd quarter report, 2
The first three quarters of 022 achieved revenue of 7.903 billion yuan, an increase of 10.99% over the previous year; realized net profit of 204 million yuan, an increase of 8.41% over the previous year; and realized deduction of non-net profit of 134 million yuan, an increase of 3.2% over the previous year. The core optics business developed smoothly, with revenue up 37.84% year on year; automotive optics revenue grew rapidly, up 718.02% year on year, and the development momentum is good. We continue to be optimistic about the advantages and development opportunities of the company's optical business under the tide of intelligent automobiles. Maintaining the company's net profit of 2022-2024 is expected to be 3.05/564/788 million yuan respectively, the corresponding EPS is 0.29/0.53/0.74 yuan/share respectively, and the PE corresponding to the current stock price is 48.0/25.9/18.5 times, respectively, maintaining the “buy” rating.
Profitability is gradually increasing, and R&D investment continues to expand
On the revenue side, the company's core optics business expanded rapidly. 2022Q3's optical revenue increased 22.54% year on year, revenue from high-definition wide-angle lenses and modules increased 72.56% year on year, and automotive optics revenue increased 587.62% year on year.
The rapid growth of the optical business has led to a steady increase in the company's gross margin. The gross profit margin of 2022Q3 in a single quarter was 12.42%, up 2.62 pct and 2.01pct respectively over the same period last year. On the cost side, affected by equity incentive expenses, the company's fee rate during the 2022 Q3 period was 9.41%, up from month to month. Among them, the company increased R&D investment. In 2022 Q3, R&D expenses were 120 million yuan, a sharp increase of 195.19% over the previous year, and the R&D cost rate was 3.96%, an increase of 2.20 pct over the previous year.
Furthermore, the company's inventory decreased by 240 million month-on-month, and operating efficiency was further improved.
The high quality of automotive grade customer resources has fully benefited from the intelligent upgrade trend. The company has deepened strategic cooperation with leading international automotive safety solution companies such as Mobileye and Nvidia, and has continued to expand the market share of automotive lenses in well-known domestic automotive electronics suppliers Valeo, Conti, Aptiv, ZF, Magna, etc. The company is also focusing on cooperation with domestic advanced automotive safety solution companies such as Horizon, Huawei, and Baidu to expand the target scale of vehicle cameras and video modules in domestic and foreign OEMs such as Tesla, NIO, BYD, and Geely. A number of the company's high-end 8M ADAS vehicle imaging modules and DMS image modules were targeted and mass-produced and shipped by NIO, BYD, and Zero Run. With the implementation of fund-raising projects under construction for in-vehicle cameras, subsequent production capacity is expected to continue to be released.
Risk warning: raw material prices fluctuate, industry demand falls short of expectations, and the company's R&D falls short of expectations.