Introduction to this report:
The company focuses on automotive connector-related fields. With the accelerated development of intelligent automobiles and new energy, the company's steering system components, filters, inverter connectors and other products will experience rapid growth.
Key points of investment:
The first coverage gave a rating for increasing holdings, with a target price of 25.51 yuan. The company focuses on automotive connector-related fields. With the accelerated development of intelligent automobiles and new energy, the company's steering system components, filters, inverter connectors and other products will experience volume growth, driving continuous improvement in the company's revenue and profitability. The company's EPS for 2021-2023 is expected to be 0.61/0.73/0.88 yuan, respectively, and the target price is 25.51 yuan, corresponding to about 35 times PE in 2022.
Benefiting from intelligence+new energy, automotive connectors will usher in rapid development. Automotive electronics are developing rapidly, control units are becoming more and more closely connected, and the use of connectors for signal transmission continues to increase; demand for connectors that distribute current in power systems of new energy vehicles and wire-control sites of smart cars is also growing rapidly. The size of the global automotive connector industry is expected to grow from $15.2 billion to $19.4 billion in 2019-2025. In the field of traditional automotive connectors, international giants such as Tyco occupy the main market share, while in the emerging field, Chinese companies will play a more important role with their industrial chain advantages and quick response capabilities.
The company focuses on automotive connector-related fields, with new products bringing accelerated revenue growth and continuous improvement in profitability. The company's main products focus on automotive connectors in a broad sense. Core customers include component giants such as Bosch, United Electronics, and China. End customers include automobile brands such as Volkswagen, BMW, Audi, and GM. In recent years, the company has continuously increased its investment in new application fields such as steering system components, transmission management system components, and energy management systems. Driven by new products, the company's revenue will accelerate growth, and profitability will continue to improve.
Catalysts: continuous introduction of new products, continuous breakthroughs for new customers
Risk warning: The recovery in sales in the automotive industry fell short of expectations, and the increase in profitability fell short of expectations