This report is read as follows:
The company is the main OEM supplier of BYD automotive electronic controller, fully benefiting from the growth of BYD auto sales, and cooperation is expected to deepen in the future. The offline lighting business benefits from the deepening of application scenarios and the expansion of the product line of core customers.
Main points of investment:
Cover for the first time, target price 69.05 yuan, increase the rating. It is estimated that the return net profit of the company from 2021 to 2023 is 1.85,2.77 and 385 million yuan, and the corresponding EPS is 1.93,2.89 and 4.02 yuan respectively. The company's traditional controller business is basically stable, with high growth of automotive electronic controllers and offline lighting products. Compared with the valuation of the same industry, combined with PE and PB valuation methods, the company is given a target price of 69.05 yuan in 2022, covering for the first time and giving an overweight rating.
The company is the main OEM supplier of BYD automotive electronic controller, fully benefiting from the growth of BYD auto sales, and cooperation is expected to deepen in the future. As the Tier1 supplier of BYD Automotive Controller OEM, the company manufactures intelligent controller products for BYD through the processing of supplied materials. The company has carried out in-depth cooperation with BYD since 2016. through years of high-quality cooperation, the business volume has gradually expanded and gradually become the main supplier of BYD, accounting for more than 50% of its procurement share. Fully benefit from the high sales of BYD cars, cooperation is expected to continue to deepen in the future.
The company's offline lighting business benefits from the deepening of industry application scenarios and the expansion of the product line of core customers.
Off-grid lighting is mainly used in areas where power grid and power supply are underdeveloped, and its application extends from basic lighting to entertainment and home processing scenes, mainly in Asia-Pacific and sub-Saharan Africa. Africa has no access to electricity and a large population with unstable power supply. The company's main customers will achieve the largest financing in its history in 2022, which is expected to greatly promote the growth of the company's offline lighting business.
The basic disk of home appliance controller is stable, and the layout of consumer electronics controller and products. The company has a wide variety of smart home and home appliance controllers, and works closely with international well-known manufacturers, the growth rate slows down, but the medium-and long-term logic of the industry remains the same. The company holds the two hands of the terminal product and the intelligent controller, and continues to develop new consumer electronics businesses such as bicycle lights, cosmetic mirrors, robots and so on.
Risk tips: the risk of rising raw material prices and chip shortage, the risk of relatively high export income, the risk of macroeconomic fluctuations at home and abroad, the risk of automobile and new energy business expansion or less than expected, and so on.
