The APP of Zhitong Finance was informed that Huatai issued a research report saying that he maintained Hongteng's "overweight" rating (06088), forecast its annual net profit of US $1.38pm 1.48 / 152 million in 2022-23-24, and lowered its target price by 19% to HK $1.22. He was cautious about the profit outlook. 1H22 revenue rose 6 per cent year-on-year to $2.1 billion, while net profit attributable to shareholders surged 818.8 per cent year-on-year to $85.117 million, in line with the Yingxi forecast range ($8000-$90 million) released on July 18.
According to the report, the company's 1H22 high-margin products have made steady progress:1)The electric vehicle division, which saw revenue growth of 12.3 per cent year-on-year, will launch more high-speed and high-voltage products in 2022 and connection modules in 2023, believing that the electric vehicle business will be a priority.2)The 5GAIoT business accounts for 1/3 of the revenue of the network facilities segment, and 5GAIoT products continue to benefit from robust demand in the data center.3)The increase in shipments of wired and true wireless Bluetooth headsets led to an increase in revenue from system terminal products (up 16.5% year-on-year). The bank expects Hongteng to continue to optimize its product structure through the 3x3 strategy, and high-margin products as a percentage of revenue may increase.
Despite 1H22's solid growth, the company expects its 3Q22 revenue to be flat year-on-year, including:1)Revenue from the smartphone and computer business sectors will remain flat due to weak demand.2)Although the business demand for network facilities is stable, it is cautious and revenue is expected to remain flat.3)Revenue from the electric vehicle sector will be flat. Remain optimistic about the demand for electric vehicles, but the impact of lack of core may continue to 3Q22.4)System terminal product segment revenue may achieve double-digit growth, mainly due to the sales of TWS products. At the same time, it maintains the guidance of flat revenue and net profit growth for the whole year, which Huatai believes indicates that the company may face greater challenges in 4Q22.