Company FPC soft board + cut into new energy vehicle customers, maintain "buy" rating company announcement 2022H1 semi-annual report, achieve operating income of 790 million yuan, YoY+15.4%, return net profit of 71 million yuan, YoY-20.9%,2022Q2 single-quarter operating income of 380 million yuan, YoY-0.1%, home net profit of 31 million yuan, YoY-42.8%, we maintain the previous profit forecast It is estimated that the operating income from 2022 to 2024 will be 1.56 pound 3.19 billion yuan, the net profit of homing home will be 2.8370 million yuan, the YoY+37.7%/33.0%/26.7%, EPS will be 1.19 pound 1.59 billion, and the current share price will be 23.4pm 17.6max 13.9 times, taking into account the accelerated pace of new energy and automotive customers' new project introduction, maintaining the "buy" rating.

FPC and LED backlight module business overcome capacity bottlenecks and cut into the new energy industry. The proportion of revenue from FPC, LED backlight module and connector components business is 41.1%, 13.7% and 38.6% respectively, and the percentage is 13.7% 13.0% 8.9%. Among them, 2022H1 has completed a large-scale expansion of the FPC production line, the development of card position power battery FPC and CCS in the field of energy storage, and the power battery management system FPC has increased by more than 100% compared with the same period last year. LED backlight module business, vehicle LED backlight module product revenue is growing rapidly, an increase of nearly 70% over the same period last year, accounting for more than 40% of the revenue of LED backlight module products. Connector components business, the company opened up new energy industry customers, precision structural products into Haichen new energy, Ganfeng lithium power and other customers, but due to the rising cost of raw materials, gross profit margin decreased 4.3 pct to 16.1%.

With the development of the field of new energy vehicles and energy storage, the company's three major product integration advantages are significant. The categories related to new energy vehicles and energy storage have increased significantly. FPC, connector components and LED backlight modules are respectively used in power batteries and energy storage batteries, positive and negative connection plates and protective sheets, battery cover plates, vehicle backlight modules, to provide customers with comprehensive high value-added services. The pace of customer introduction in battery PACK factory and mainframe factory is expected to speed up. The company has the ability to process metal moulds and is expected to maintain a good profit level in the face of intensified competition in the industry.

Risk tips: increased competition in the connector components industry, lower-than-expected demand for FPC, rising prices of raw materials, and increased dependence on core customers.