[investment points]
The company's main products are consumer electronics aluminum alloy materials. After years of deep ploughing in the material field, we have mastered the core technical advantages of the preparation and processing of aluminum structural materials for consumer electronic products. The company has been supporting aluminum structural materials for A customers since 2011, and began to work directly with Samsung in 2015. after factory inspection by Samsung, it has become the designated material supplier for Samsung's flagship smartphones. In addition, the company has established a good cooperative relationship with well-known consumer electronics brands and processing manufacturers at home and abroad. Products are widely used in smartphones, tablets, laptops and other intelligent products.
Samsung is the current global smartphone market share, folding screen phone market share of the first brand, the company designated material suppliers for Samsung, folding screen aluminum alone, will maximize the enjoyment of folding screen market growth dividend, according to the CinnoResearch report, 2022 Samsung parts procurement scale can meet 1500-20 million folding screen phone shipments, more than double the year-on-year 2021 growth. The lightweight development of traditional smartphones has also driven the continuous improvement of the permeability of high-end materials such as 7-series aluminum. The company is also one of the top 200 suppliers for A customers and has provided aluminum for A customers' tablets and laptops for many years. We believe that the company's card position in the world's leading brand customers, in the iteration of structural materials to take the lead. The selection and application of materials by leading customers often represent the direction of the development of the industry, and other customers in the industry are expected to follow. At the same time, the company actively expand new customers, new areas, market share is expected to achieve further improvement. New capacity will also be gradually released after 2022 to meet full downstream demand.
[investment advice]
We increase the company's revenue from 2022 to 2024, adjust the gross profit margin of each business, and adjust the expense rate during the period. It is estimated that the revenue of the company from 2022 to 2024 is 26.21,36.12 and 4.852 billion yuan respectively, and the net profit of returning mother is 4.10,5.96 and 826 million yuan respectively.
The company plans to add 120 million shares on June 7, 2022, bringing the total share capital to 521 million shares. It is estimated that the EPS of 2022-2024 will be 1.02,1.49,2.06 yuan per share, the corresponding pre-PE will be 16,11,8 times respectively, and the EPS of 2022-2024 will be 0.79,1.14,1.58 yuan per share respectively. We select comparable companies from the consumer electronics industry and aluminum industry, taking into account the company's technological and scale advantages in folding screen mobile phone materials, we give 15x PE in 2023, the 12-month target price is 22.30yuan, and the target price is 17.15yuan after the implementation of the corresponding increase program, which is upgraded to the "buy" rating.
[risk Tip]
The shipments of folding screen phones from major customers are lower than expected.
The introduction and expansion of new products is not as expected, and the progress of new customer development is not as expected.
Weak demand in the consumer electronics market: weak market demand leads to lower-than-expected terminal shipments.
The sharp rise in raw material aluminum prices suppresses the company's gross profit margin.
The progress of production expansion is lower than expected.
