1. The company is an intelligent control expert with steady growth in performance and strong profitability.
Long Intelligence was founded in 2003, specializing in smart home and home appliances, automotive electronics, off-grid lighting, consumer electronics and other fields to provide a variety of intelligent controller products and corresponding solutions. The company's revenue in the past five years CAGR 23.51%, home net profit CAGR37.20%, smart home and home appliance controller, off-grid lighting products, automotive electronic controller revenue is relatively high. The company's expenses are well controlled, with a net interest rate of 14.68% in 2021.
two。 The off-grid solar energy industry is booming, and the company is the leading supplier in the world.
Off-grid solar energy is a self-sufficient photovoltaic power generation system separated from the power grid, which belongs to household energy storage. Off-grid solar energy has become a reliable way to provide affordable modern power services in underdeveloped areas, and has become an important supplement to the unstable areas of power grid, with more than 1.7 billion potential users. Since 2021, with the normalization of overseas epidemic situation, the upgrading of superimposed products has driven ASP upward, and the prosperity of the off-grid solar energy industry has improved. The company's largest customer, Sun King, is a global leader in offline solar energy, recently raising $260 million to expand its market and product line. The company is the main OEM supplier of Sun King. The off-grid lighting business has accelerated for two consecutive years and is expected to improve further in 2022.
3. The company is the main supplier of BYD car controller OEM, and the cooperation is expected to upgrade.
The company is the main supplier of BYD automotive controller OEM, accounting for more than 50% of its procurement share, and is expected to enter a new and all-round cooperation with BYD. Due to two reasons, BYD's demand for controller outsourcing suppliers is expected to increase, first, the terminal demand is greatly increased, its own production capacity is in short supply, and second, the marketization of the "Fudi system" continues to advance, and the supply chain is expected to be further opened. The company is expected to fully benefit.
4. The company's smart home, new consumer electronics business layout is good, service quality customers.
The company's smart home and new consumer electronics business mainly serve high-quality customers in domestic and foreign segments, such as Severin (established German small household appliance manufacturers), Simplehuman (American well-known smart home brands), Knog (well-known brands of high-end bicycle lights) and so on.
The company is expected to bring new growth points in cooperation with the human service robot unicorn enterprises Dacheng Technology and Kangli Youlan.
5. Profit forecast and investment advice. We estimate that the company's revenue in 2022, 2023 and 2024 will be 1.367 billion yuan, 1.908 billion yuan and 2.57 billion yuan respectively, up 42.37%, 39.58% and 34.73% respectively over the same period last year, and the net profit will be 205 million yuan, 288 million yuan and 402 million yuan respectively, up 45.29%, 40.45% and 39.92% respectively over the same period last year. The current market capitalization corresponds to 20x, 15x and 10x respectively.
6. Risk hint. With the change of macroeconomic environment, the company's smart home and home appliance business is lower than expected; market competition intensifies, affecting the company's supply share or profitability among major customers; the decline in customer competitiveness affects the growth rate of the company's off-grid lighting or automotive electronic controller business; epidemic situation and chip shortage affect more than expected.
