This report is read as follows:
The high growth of off-grid lighting and automotive electronics business, smart home and home appliances, consumer electronics and other traditional business waiting for demand recovery. Raise the profit forecast and target price, and maintain the overweight rating.
Main points of investment:
Raise profit forecasts and target prices, and maintain overweight ratings. Taking into account the volume of off-grid lighting and automotive electronics business, the company's 2022-2024 net profit will be increased to 2.06 shock 2.92 shock 3.95 million yuan (the previous value is 1.85 pound 2.77 shock 3.85 million), corresponding to 2.15 pound 3.04 plus 4.12 yuan. The company's demand for traditional controllers is expected to recover, with high growth in automotive electronic controllers and offline lighting products. Compared with the same industry valuation, the company will be given 40 times PE in 2022, raising the target price to 86 yuan and maintaining an overweight rating.
The amount of off-grid lighting accelerated, an increase of 137.95% over the same period last year. The company mainly provides customers with off-grid solar lighting systems, and the business of downstream customers is expanding rapidly this year. With the continuous expansion of customers in the African market, in addition to the upgrading of the original market products, the product demand of the new market is also rising. The increment of the off-grid lighting market will increase significantly in the future. As the main supplier, the company will continue to meet customer demand and ensure the timely supply of products.
Automotive electronics accounted for more than 10 percent, an increase of 123.49 percent over the same period last year. The company has been in the field of automotive electronic controller for many years, with a wide range of products, covering many key areas of automotive electronics, and the order volume continues to increase in the first half of the year. In the future, the company will continue to seize market opportunities and strengthen in-depth cooperation with key customers. continue to develop new customers and new products.
Traditional businesses such as smart home and home appliances and consumer electronics are waiting for demand to recover. As the company's traditional business, affected by the epidemic and the war between Russia and Ukraine, demand in the downstream terminal consumer market was weak, resulting in a decline in sales in the first half of the year. We believe that the decline in demand is short-term, with the continuous strengthening of intelligent and electronic trend, related products will be further upgraded, and demand is expected to further recover in the future. at present, the company has established a long-term and stable strategic partnership with major customers in this field. The company not only participates in the new projects of old customers, but also actively develops new customers.
Risk hints: 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, and the risk of automobile and new energy business expansion or falling short of expectations.
