The performance is in line with expectations and profitability continues to improve. In the first three quarters, the company achieved revenue of 7.9 billion yuan, an increase of 11% over the same period last year, and a net profit of 200 million yuan, an increase of 8% over the same period last year. Q3's revenue in a single quarter was 3 billion yuan, an increase of 31% over the same period last year, and its net profit was 100 million yuan, an increase of 11% over the same period last year. The core optical business is developing smoothly, with revenue in the first three quarters up 38% year-on-year and Q3 up 23% in a single quarter. Among them, vehicle optical revenue grew rapidly, with an increase of 718% in the first three quarters compared with the same period last year. In addition, high-definition wide-angle cameras also showed eye-catching performance, with Q3 revenue up 73% year-on-year. With the continuous improvement of the revenue share of high-definition wide-angle and vehicle business, the company's profitability continues to improve. Q3 single-quarter gross profit margin is 12.42%, 2.62pct is higher than the same period last year, 2.01pct is higher than the previous year, benefiting from the optimization of revenue structure, the company's profitability is expected to continue to improve.

Vehicle optics continues to increase, and the growth logic continues to be realized. The high growth logic of the company's in-car optical business continues to be realized. from a customer point of view, the company is expected to become the first supplier of Tesla, Inc. car lenses. The ET7&ET5 8m ADAS image module in cooperation with NIO Inc. Automobile has been successfully produced, and the 8m module has also been cut into BYD. At the same time, the company works closely with NVIDIA Corp, Mobileye, Huawei, Horizon, Baidu, Inc. and other autopilot solutions, as well as traditional Tier1, so that the depth and breadth of customer resources are not in doubt. Car camera race track long slope thick snow, we think that the company's customers are of high quality, leading technology, obvious clamping advantages in the field of high-end ADAS lenses and modules, obviously enjoy the initial outbreak of dividends in the industry, at the same time, it is expected to bring long-term forward-looking R & D advantages and large-scale postpartum cost advantages to the company through long-term deep binding with major customers and their own technical strength, so as to shape the sustainable competitiveness of the car optical race track. Consolidate the company's leading position.

HD wide-angle benefit from the recovery of the market, the positive transformation of traditional business. The company maintains a leading position in the industry of high-definition wide-angle lenses and panoramic image modules, serving domestic and foreign well-known customers in the fields of motion cameras such as GoPro, DJI, Shadow Stone, AXON, UAV, panoramic cameras and police monitoring, with a steady boost in revenue from downstream customers. At the same time, the company touches the positive transformation of the business layout of the vehicle field, and is expected to make a breakthrough relying on the strong customer resources in the field of vehicle optics; the mobile phone optical business is also actively transformed to AR/VR, machine vision and other fields, which is expected to gradually get rid of the drag of the traditional consumer electronics main business and bring diversified growth engines.

We forecast that the company's earnings per share for 22-24 years will be 0.31 pesos 0.490.71 yuan respectively (the original forecast for 22-24 years will be 0.35max 0.52 yuan 0.69 yuan respectively, mainly adjusting the company's revenue structure). According to the comparable company, we will maintain 68 times PE valuation for 22 years, corresponding to the target price of 21.08 yuan, and maintain the buy rating.

Risk hint

The penetration rate of autopilot is lower than expected, the shipment of optical lens is not as expected, the risk of gross margin decline, and the risk of continued weak consumer electronics demand.