This report is read as follows:

The company's 22Q1 performance is outstanding, in line with the previous guidelines. The company's new energy vehicle business is deeply bound to large customers in the future, while the volume and price of mobile phones and XR materials rise together, and the subsequent release of new products will further lead to the release of performance.

Main points of investment:

Maintain the "overweight" rating and lower the target price to 18.27 yuan. Taking into account the impact of the epidemic, we lowered its EPS of 0.63 (- 0.11) / 2022-2024 respectively.

0.85 (- 0.16) /

1.12 (- 0.21)

Yuan, giving it a valuation of 29 times PE in 2022, lowering the target price to 18.27 yuan.

The company's 22Q1 performance is outstanding, in line with the previous guidelines. The company's 2022Q1 achieved revenue of 1.055 billion yuan, year-on-year + 44.68%, net profit of 85 million yuan, year-on-year + 1787.66%, and non-return net profit of 88 million yuan, + 5375.55% year-on-year, in line with the previous performance guidelines. This is mainly due to the further improvement of the company's product yield and production efficiency, the continuous growth of orders in various fields, and the continuous increase in the revenue share of the new energy vehicle business.

The proportion of new energy business continues to rise, further ushering in the volume period. The company deeply participates in many product lines of T customers (charging pile, Model S/X/3/Y, electric pickup, etc.), including power integrated chip / high voltage wire harness Busbar, etc., with a bicycle value of about 2000 yuan. T customers expect CAGR 50% delivery in the next few years, the company will be accompanied by the growth of major customers, performance flexibility. At the same time, the company's new energy vehicle major customers wireless charging fixed-point project will start small batch production in the second half of 2022. In addition, it has in-depth cooperation with Bosch in auto parts and other fields, and is expected to increase volume one after another.

The high-value material number of mobile phone continues to break through, and the stand-alone ASP of XR has increased several times. Thanks to product upgrades and share breakthroughs, the company continues to improve the quantity and price in the heat dissipation shielding parts of A customers' mobile phones.

In M customer VR, the next generation of product stand-alone ASP is expected to grow by 230%, and actively enter the A customer MR supply chain, with the new product release, the company's performance will also accelerate the release.

Risk hint. The risk of worsening the epidemic; the risk of rising prices of upstream raw materials